Trump's Presence in New York Civil Fraud Trial as Defense Calls Accounting Expert Witness
Former President Trump attends his New York civil fraud trial as an accounting expert strengthens the defense's argument on the subjective nature of company valuations
Donald Trump, the former president, appeared in court for his New York civil fraud trial on Thursday. An accounting expert was called to support the defense's argument that company valuations are subjective. Trump briefly criticized the judge presiding over the trial, Arthur Engoron, and New York attorney general Letitia James as he entered the courtroom, referring to the trial as "corrupt."
The former president emphatically stated, "We have not committed any wrongdoing."
Trump also commended the testimony of defense accounting expert Eli Bartov, who is a professor of accounting at New York University's Stern School of Business. Bartov emphasized that accounting standards allow for a broad range of valuation calculation methods to be used on personal financial statements.
The ex-president's court appearance follows the fourth GOP presidential debate, which Trump did not attend. Leading the Republican primary, the former president refrained from commenting on the GOP race Thursday morning, instead criticizing the attorney general's civil case against him. He later explained to reporters that he went to court to ensure the public "hears the true story."
The high-stakes civil case directly impacts Trump's real estate empire, striking at the core of his brand. New York Attorney General Letitia James is suing Trump for $250 million and aiming to prohibit him from conducting business in the state.
Judge Engoron has already declared Trump and his co-defendants responsible for fraud. The main argument in Trump's defense is that the financial statements were not deceptive and that different individuals can assign varying values to the same property.
The defense contends that there was no intention to deceive banks or insurance companies, in part because the Trump family relied on accountants, and that any discrepancies in property values were not significant.
"Based on my analysis, there is absolutely no proof of any accounting fraud," Bartov stated during his testimony on Thursday. "Furthermore, my findings indicate that the financial statements were not materially inaccurate."
"So in your expert opinion, the AGs claims have no merit?" Engoron asked.
"That is absolutely my opinion. Absolutely." Bartov said.
Although he admitted that there were inaccuracies in Trump's financial statements, including an inflated price for Trump's triplex apartment at Trump Tower, Bartov insisted that such errors are not uncommon. Bartov, who valued Trump's brand at $3 billion, stated that he had thoroughly examined the statements and reports for any signs of wrongdoing but could not find a single violation.
Trump's lawyer, Jesus Suarez, guided Bartov through a Deutsche Bank credit report that revealed Trump and the bank used different cap rates to assess the value of Trump Tower in 2013. Bartov argued that the Attorney General's interpretation of this as fraud was incorrect, stating that it was simply an expected difference, not fraudulent activity.
During a tense moment, Bartov confronted an objection from Louis Solomon, attorney general's lawyer. When Solomon objected, claiming that part of Bartov's testimony was beyond his expertise as he is not a banker, Bartov shouted, "Shame on yourself, talking to me like that!"
"Bartov declared, 'You fabricate accusations. I am here to speak the truth. You should feel ashamed of yourself.'"
Before the trial in September, Engoron determined that the Trumps committed "persistent and repeated fraud" by inflating the value of assets on their financial statements. The state is seeking to substantiate six additional allegations, which include conspiracy, falsifying business records, issuing false financial statements, and insurance fraud.
"Donald Trump has been involved in financial fraud for years, using it to benefit himself and his family," James posted on X, while he was absent from court on Thursday. "We've already shown the extensive scale of his fraud. No matter how much he denies it, the facts speak for themselves."
The attorney general's office objected to Bartov's testimony, arguing that his detailed account of the complaint was not relevant since it did not address the evidence presented at trial.
As of Thursday, a New York appeals court has decided to postpone the revocation of Trump's business certificates until after the civil fraud trial and any subsequent appeals have concluded. This ruling follows an earlier decision by a single appeals court judge at the beginning of the trial.
Trump praised the decision outside of the courtroom, calling it a "very good ruling" immediately after it was announced. His attorney, Chris Kise, also told CNN that the ruling "sets the stage for a thorough review of the trial court's numerous errors."
The attorney general's office informed the appeals court that they had no objection to temporarily halting the cancellation of the business certificates.
Despite being under a gag order in the case, former President Trump is expected to testify in the trial again on Monday, as confirmed by his attorney, Alina Habba, outside the courthouse on Thursday.
Habba stated on Thursday that, despite my advice against it due to the gag order, he still wants to take the stand because he strongly opposes what is occurring in court. The former president is prohibited from discussing court staff following the reinstatement of his gag order by a New York appellate court last month.
Engoron initially issued a directive prohibiting Trump from publicly discussing his court staff after Trump made several remarks about a clerk he believes is biased against him.
This story has been revised with further details.
CNNs Kristen Holmes and Kristina Sgueglia contributed to this report.
