Judge dismisses major arguments in NY fraud case against Trump, signaling trouble for ex-president
NY trial judge rejects Trump's defense, a blow to the former president's fraud case A tough outcome looms as trial nears end What's next for Trump?
The New York trial judge presiding over Donald Trump's civil fraud trial issued a strongly-worded denial of the former president's latest effort to dismiss the state attorney general's case against him, indicating a challenging potential outcome for Trump as the trial nears its conclusion. Judge Arthur Engoron criticized Trump's accounting experts and dismissed crucial elements of the defense in a ruling on Monday, denying a motion for a directed verdict filed by Trump's legal team following the conclusion of trial testimony last week.
It would be a "glaring flaw" to assume testimony from Trump accounting experts Eli Bartov and Jason Flemmons are true and accurate, the judge wrote.
Donald Trump in New York Supreme Court on Monday.
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Takeaways from the 11-week Trump civil fraud trial
The case record proves there are many material misstatements on Trumps personal financial statements, according to Engoron.
"Bartov's tenure as a professor does not change the fact that his testimony can be swayed by financial incentives. By stubbornly trying to defend every error, his credibility has been lost," Engoron commented. "The defendants' arguments about valuations being subjective and the law only penalizing material deviations are nothing but attempts to deceive."
The judge emphasized that a lie is still a lie, regardless of the different criteria used for valuation and different ways of analysis. Trump attorney Chris Kise accused Engoron of disregarding the legal elements of the claims and rejecting the real facts from the actual participants in the real world, deeming it a complete failure.
"The Attorney General's burden of proof, the testimony from involved bankers, the application of governing accounting standards, the express language of the financial statements, and the ruling from the First Department all seem to hold no weight in the decision. The only thing that appears to matter is reaching a predetermined destination," Kise stated in a press release.
On Monday, the judge also dismissed a defense argument often cited by Trump that disclaimers on his financial statements shield him from liability.
"The statements are not disclaimers, nor are they defendant statements, and they do not protect defendants from liability. In fact, they may actually make defendants more liable," he stated.
Engoron also expressed confidence in the Attorney General's expert on disgorgement and stated that the banks that loaned money to Trump suffered harm, despite the defense's argument that the banks were fond of Trump's business.
Whats next?
"Engoron stated that if you lower the interest rate on a loan by falsely inflating the value of your assets to reduce the perceived risk to the lender, your gains are dishonest. Just because the lenders made millions of dollars and were satisfied with the deals, it doesn't mean that they were not harmed by lending at lower interest rates than they would have otherwise."
Prior to the trial, the judge had already issued a summary judgment opinion finding Trump, his adult sons, and their businesses liable for ongoing fraud. He also directed the dissolution of Trump's business certificates, a decision that Trump is appealing. Engoron will be responsible for determining the amount owed by the Trumps and their company, as well as the future of their New York business. The attorney generals office and Trump's lawyers have until January 5 to submit briefs outlining their positions, with oral arguments scheduled for January 11 following the conclusion of witness testimony.
Engoron is expected to soon issue a ruling on the amount of disgorgement, or ill-gotten gains, that Trump will be required to pay based on the previous ruling that the financial statements were fraudulent. Additionally, he is considering six other causes of action, such as conspiracy, issuing false financial statements, falsifying business records, and insurance fraud. The attorney general's office is pursuing over $250 million in damages and aiming to prohibit Trump and his two adult sons from conducting business in New York.
This story has been updated with additional details.
