Understanding Trump's Choice to Decline Testifying Once More in New York's Civil Fraud Trial
Former President Trump cancels appearance at New York civil fraud trial, raising questions about his brand and escalating tensions with the judge
The scheduled testimony of former President Donald Trump at his New York civil fraud trial on Monday was canceled after he made a surprise announcement on Sunday that he would not be appearing. Trump had previously testified in the trial, choosing to focus on criticizing the judge overseeing his case and the attorney general's $250 million lawsuit against him instead of answering questions from the New York attorney general's office.
Monday's questions would have been more favorable towards the former president, as he was set to testify under the guidance of his own lawyers in an attempt to strengthen his defense against accusations of fraudulent property value inflation.
Trump's change of heart about testifying coincides with his ongoing criticism of the civil fraud case filed by New York Attorney General Letitia James, who is pursuing $250 million in damages and a ban on the former president's business activities in the state.
Chris Kise, one of Trump's attorneys, stated on Sunday that "President Trump has already testified" in response to Trump's announcement on social media that he would not testify. Kise went on to criticize the judge's actions, calling the gag order unconstitutional and expressing frustration that the judge had seemingly ignored Trump's testimony and that of others involved in the case's financial transactions.
Trump may not be facing criminal charges in this case, but the allegations against his business are deeply personal to the former president. He has dedicated several days to attending the trial, even outside of his testimony. This civil trial serves as a preview of what may occur next year, when Trump runs for president while dealing with one or more ongoing criminal trials.
Heres what to know about Trumps trial and his decision not to testify:
Trial and campaign trail converge
Trump made an appearance at the civil trial on Thursday to listen to the testimony of expert witness Eli Bartov, a New York University accounting professor called upon by his defense team. While it wasn't necessary for Trump to attend, his presence drew more focus on the trial and provided him with the opportunity to address the media during breaks outside the courtroom.
"At one point, Trump declared, 'We have proven that this is nothing more than a witch hunt.' He also voiced frustration about being in New York instead of one of the early swing states for his 2024 campaign, despite attending voluntarily."
"I should be in Iowa, New Hampshire, and South Carolina right now. Instead, I'm sitting in a courthouse," Trump lamented.
Trump's remarks revealed his frustration with the trial interfering with his presidential campaign. However, the truth is that the two have effectively merged - Trump's legal battles have become a central part of his appeal to his base, as he argues that his own legal jeopardy is a key reason why voters should re-elect him to the White House.
Judge has ruled Trump liable for fraud
James claims that Trump and his co-defendants, which include his two adult sons, the Trump Organization, and several company executives, are accused of committing fraud by exaggerating the value of assets on financial statements in order to secure more favorable terms on commercial real estate loans and insurance policies.
Judge Engoron had already determined before the trial started last month that Trump and his co-defendants were responsible for "continuous and repeated" fraud. Now, the judge is assessing the amount the Trumps will be required to pay in compensation for the profits they have reportedly obtained through fraudulent business practices.
According to an expert witness for the attorney general who testified last month, the unlawful profits amounted to $168 million, although a defense witness contested that assessment.
The attorney general's office is also seeking to establish six other allegations: falsifying business records, conspiring to falsify business records, issuing false financial statements, conspiring to falsify financial statements, insurance fraud, and conspiring to commit insurance fraud.
The trial has unfolded over the past two months, with a potential appeal on the horizon as Trump's lawyers have already appealed Engoron's initial decision. If Engoron's ruling in the remainder of the case, which is a bench trial without a jury, goes against Trump, it is also expected to be appealed.
Although no criminal charges have been brought against Trump in this case, the attorney general's efforts to prevent him from conducting business in New York have significant implications for the former president. Trump's business certificates were initially revoked by a summary judgment ruling, but this decision has been temporarily put on hold pending an appeal.
Trump brand under scrutiny
Last week, a New York appeals court granted a temporary halt to the revocation of Trump's business certificates until the conclusion of the civil fraud trial and any subsequent appeals. This decision extends the earlier ruling made by a single appeals court judge at the beginning of the trial.
Trumps lawyers have contended that the former president’s financial statements were not fraudulent, and that Deutsche Bank, which provided Trump with loans for multiple properties, conducted its own assessment and did not rely on the statements in question. Defense attorneys have brought in expert witnesses to testify that there was no fraud involved, and that Deutsche Bank’s actions would have remained unchanged even if Trump’s reported net worth had been lower at the time of the transactions.
They have also contended that valuations are subjective and that differences in valuations are routine. They claim that Trump's net worth is actually higher than what was listed in his statements because it did not include the value of his brand.
If Trump had testified on Monday, he would have probably emphasized these arguments about his brand and net worth, similar to his previous testimony. When he wasn't criticizing the trial, Trump was bragging about his properties and golf courses.
He stated that Mar-a-Lago's value exceeded $1 billion and declared his golf course in Aberdeen, Scotland, as "the greatest golf course ever built."
During Donald Trump Jr.'s testimony, the defense lawyers utilized a polished PR presentation to highlight the Trump Organization, possibly indicating their approach for the former president's testimony as well.
Tensions between Trump and the judge
Trump's previous statement, during which he vehemently criticized the attorney general, the judge, and the entire trial using bombastic language, continuously frustrated Engoron. At one point, Engoron even warned of the possibility of having Trump removed as a witness.
Trump criticized James during his testimony, calling it a political witch hunt and expressing his belief that she should be ashamed of herself. He also condemned the judge, stating, "It's a terrible thing you've done."
If Trump had testified on Monday, he could have repeated the same attacks he has been making in public or on social media. He made these attacks in a lengthy, all-caps statement on Truth Social Sunday, a day when he chose not to testify.
Trump is currently under a gag order imposed by Engoron. This came after the former president attacked his law clerk, Allison Greenfield, on social media by posting a picture of her with Senate Majority Leader Chuck Schumer, who is a Democrat.
Engoron has imposed fines on Trump on two occasions for breaching the order, one of which was a $10,000 fine for comments made outside of court during former Trump lawyer Michael Cohen's testimony. This led to a remarkable moment where the judge summoned Trump to answer questions about whether he was criticizing Greenfield or Cohen when he complained about the "highly partisan person sitting alongside" the judge.
Enrogon deemed Trump's assertion that he was referring to Cohen as "lacking credibility" when issuing the fine. Trump's legal team has filed an appeal.
Trump attorney Alina Habba revealed that despite her advice against it due to the gag order in place, Trump insisted on testifying. "My advice is that you should never take the stand with a gag order at this point. But he is determined to speak out against what is happening in this court," Habba stated on Thursday.
This story has been updated to reflect that Trump said Sunday he would not be testifying in his civil fraud trial on Monday as previously expected.
