October 3, 2023 - Trump civil fraud trial continues in New York

Trump speaks to the media before entering the courtroom on Tuesday, October 3.

Before former President Donald Trump appeared in court Tuesday for the second day of his civil fraud trial in New York, he claimed on social media that it has now “been agreed in Court that Mar-a-Lago is WORTH 50 to 100 times the Value” New York Attorney General Letitia James had ascribed to it, $18 million.

Trump was claiming, therefore, that the court had agreed the Florida property is worth $900 million to $1.8 billion.

Facts First: Trump’s claim is false. There has been no such agreement in court. Judge Arthur Engoron and a lawyer for James’ office did not endorse a Trump lawyer’s Monday claim in court that Mar-a-Lago could be sold for more than $1 billion.

In Engoron’s decision last week finding Trump liable for fraud, he wrote that “from 2011-2021, the Palm Beach County Assessor appraised the market value of Mar-a-Lago at between $18 million and $27.6 million.”

He also noted that there are significant land use restrictions attached to the property, and he wrote that Trump’s financial statements, valuing Mar-a-Lago at roughly $426.5 million to $612.1 million between 2011 and 2021, are “materially false and misleading” because they don’t reflect those restrictions.

Trump lawyer Alina Habba sharply disputed this conclusion in court on Monday, saying that “we have experts, renowned experts, who have said that properties like Mar-a-Lago are worth over a billion dollars, $1.5 billion, and I assure you that there is a person out there that would buy that property, that spectacular property, for way over a billion dollars.”

Trump and his team are entitled to argue that the judge’s analysis is inaccurate. But Trump himself was wrong to suggest that the judge had agreed in court that Mar-a-Lago is worth even more than his financial statements claimed. The judge did nothing of the sort. 

Engoron noted again in court on Monday that there were “significant” limitations on how the property can be used, and he said he had “specifically said” in the decision last week that “I’m not valuing or evaluating properties.” 

He said, “Please, press, stop saying that I valued it at $18 million. That was a tax assessment. Or, something in that range. There would have been issues of fact as to what the value was.”

Former President Donald Trump is fundraising off of his time in court.

Trump does not mention New York Attorney General Letitia James or the judge in his case, nor does he mention the gag order that prevents him from publicly discussing the court’s staff.

He does, however, note the charges and arrest brought earlier this year against him by New York District Attorney Alvin Bragg, who Trump calls “Soros-backed.”

The judge overseeing the New York civil trial against former President Donald Trump issued something prosecutors for special counsel Jack Smith have been asking for in the federal election subversion case against Trump: a limited gag order on the former president.

While Judge Arthur Engoron’s order Tuesday was specifically aimed at social media posts Trump had made earlier about his clerk, prosecutors in Washington, DC, have been warning a federal judge in several filings about Trump’s social media posts against court staff there, as well as potential witnesses in the case.

Judge Tanya Chutkan – who is presiding over the DC case – has scheduled an October 16 hearing with prosecutors and defense counsel for Trump on the proposed limited gag order.

Special counsel prosecutors have highlighted recent attacks Trump has made on potential witnesses including former Vice President Mike Pence and former Attorney General Bill Barr as well as departing Joint Chiefs Chairman Gen. Mark Milley.

Trump has also attacked Chutkan, Smith and members of his team.

“The defendant’s relentless public posts marshaling anger and mistrust in the justice system, the Court, and prosecutors have already influenced the public,” prosecutors wrote in a filing last month. “For instance, on August 5, 2023, an individual was arrested because she called the Court’s chambers and made racist death threats to the Court that were tied to the Court’s role in presiding over the defendant’s case.”

Trump’s attorneys have argued the prosecutors’ request was trying to muzzle the former president and violate his free speech rights, all during his 2024 run for president.

Trump speaks as he leaves court on Tuesday, October 3.

Former President Donald Trump said he will be back Wednesday as he left the courtroom Tuesday afternoon.

The afternoon session started after a 45-minute delay and unusual activity outside the courtroom during the lunch break. Trump went in and out of the courtroom during the break. 

Testimony re-started after Judge Arthur Engoron rebuked Trump for attacking his clerk in a social media post and in comments on Monday. He has now banned all parties from making any public comments about his staff.

The first witness, Trump’s long-time accountant Donald Bender, faced cross-examination from Trump attorney Jesus Suarez.

The cross-examination will resume Wednesday.

Judge Arthur Engoron sits before Tuesday’s proceedings.

Judge Arthur Engoron rebuked Donald Trump after the former president attacked his clerk in a social media post on Tuesday and forbade the parties from making any future comments about his staff. 

The judge then said all parties must not speak publicly about any members of the court staff.

“Consider this statement an order forbidding all parties from posting emailing or speaking publicly about any members of my staff,” Engoron said. “Failure to abide by this .. will result in serious sanctions.”

Trump posted on Truth Social Tuesday attacking Engoron’s clerk, claiming she was a “girlfriend” to Senate Majority Leader Chuck Schumer, a New York Democrat, and showing a picture of the two of them together.

“How disgraceful!” Trump wrote. “This case should be dismissed immediately.”

It was not immediately clear there was a connection between Engoron’s clerk and Schumer beyond taking a photo.

Monday, Trump also went after the clerk in his comments outside the courtroom, though he didn’t mention her by name.

“And this rogue judge, a Trump hater. The only one that hates Trump more is his associate up there,” Trump said. “The person that works with him. She’s screaming into his ear almost every time we ask a question. A disgrace. It’s a disgrace.”

The photo of Schumer and the clerk was posted last week by an obscure account on X, formerly known as Twitter, that had fewer than 200 followers as of Tuesday.

The post, which Trump included as an image in his own Truth Social post, did not allege that the clerk was Schumer’s girlfriend, merely that the two were “palling around.” Trump added the baseless “girlfriend” claim. The Truth Social post also included a clickable link to what appeared to be the clerk’s Instagram page.

Former President Donald Trump is back in court today for the second day of a civil fraud trial in New York.

His longtime accountant, Donald Bender, was the New York attorney general’s first witness.

Trump has said that he will testify at some point later in the trial, and he is on the witness list for both the state and his own legal team.

Here’s a look at photos from inside and around the courthouse today:

Former President Donald Trump is flanked by members of his legal team on the second day of a civil fraud trial in New York on Tuesday, October 3.

Police keep watch outside the court on Tuesday.

Trump speaks to the media as he arrives to court on Tuesday. He continued to attack Judge Arthur Engoron and New York Attorney General Letitia James.

New York Attorney General Letitia James sits in the courtroom for the continuation of the trial on Tuesday.

Police set up gates outside the courthouse on Tuesday.

Former President Donald Trump speaks as he leaves the courtroom for a lunch recess on Tuesday.

After Donald Trump’s former longtime accountant Donald Bender’s examination by the New York attorney general’s legal team concluded, the court went into lunch break.

Bender will face cross examination after the court resumes.

Judge Arthur Engoron warned the defense they need to come back from the break in a timely fashion. “If you’re not here I’m starting anyway,” he said.

Engoron made jokes throughout the proceedings. He started the day by joking about one of his court officers after he yelled for order in the court. Engoron said, “The man you just heard, I affectionately call Tommy, and his next gig is no doubtfully going to be at the metropolitan opera.”

Trump, though, was not joking when as exited the courtroom for the lunch break, complaining once again about the trial. “This is a rigged trial. It’s a fraudulent trial. The attorney general is a fraud and we have to expose her as that. You see what’s going on. It’s a rigged deal.”

Donald Bender arrives at the courthouse in New York on Tuesday.

Donald Bender, Trump’s longtime account, has finished his testimony for the New York attorney general’s team.

He was questioned by Kevin Wallace, an attorney for Attorney General Letitia James, who spent Tuesday morning methodically reviewing Trump’s annual statements of financial condition. 

Bender, who worked for accounting firm Mazars, was also questioned by Wallace about accounting engagement letters for 2012 through 2020, belaboring the point that the Trump Organization provided supporting data that backed Trump’s financial statements.  

He testified that it was understood that it was the Trump Organization’s duty to provide accurate information for their certification.

At some point, Bender said he learned that the Trump Organization hadn’t turned over all relevant documents for the compilation of Trump’s statement of financial conditions. “There were certain appraisals we hadn’t seen for certain years.” 

Bender testified, to his best recollection, he started asking for those appraisals in 2016. He added that he asked Jeffrey McConney, a senior vice president for the Trump Organization, for them.

Wallace then moved through more annual statements and engagement letters through the year 2020.

Bender testified he has not had any conversations with Trump since December 2019. 

Bender testified on direct examination for nearly five hours across Monday afternoon and Tuesday. He will face cross examination after the lunch break.

Former President Donald Trump speaks to the media during a break in his civil fraud trial in New York on Tuesday.

Former President Donald Trump said he will testify at his civil trial, while speaking just outside the court room during a break in proceedings.

Trump is expected to testify later in the trial, and he is on the witness list for both the state and his own legal team.

Trump’s lawyer has previously said he is eager to testify in his own defense.

Former President Donald Trump sits in the courtroom before the continuation of his trial on Tuesday.

Donald Trump remains engaged with the trial testimony Tuesday, sitting at the defense table with attorneys Chris Kise and Alina Habba. The former president has continued to review documents at the table and on the screen in front of him and leaning over often to speak to the lawyers.

Kevin Wallace, an attorney for the New York attorney general, spent Tuesday morning methodically reviewing Trump’s annual statements of financial condition and Mazars accounting engagement letters for 2012 through 2016 with former Mazars accounting executive Donald Bender, belaboring the point that the Trump Organization provided supporting data that backed Trump’s financial statements and each year certified that they understood it was Trump Organization’s duty to provide accurate information.

Eric Trump, a co-defendant, also appears engaged scanning exhibits that appear on the screen and keeping a steady eye on Bender as he testifies. He’s also biting his nails.

Trump’s decision to appear in court — his appearance is not required in this civil case — stems from how the accusations strike at what Trump values the most: his business and his brand, CNN’s Kaitlan Collins reports.

Justice Arthur Engoron speaks during the trial of former President Donald Trump for Trump's civil fraud trial at New York State Supreme Court on Tuesday.

Judge Arthur Engoron, who is overseeing the New York attorney general’s civil case against Donald Trump, said Tuesday that the trial itself is not the venue for Trump’s attorneys to contest what he’s already ruled on.

“That’s why we have appeals,” Engoron said.

The judge made several comments about the trial and the testimony at the start of the second day of a trial that’s expected to go into December.

Engoron clarified a comment he made Monday about testimony related to 2011 financial statements being a “waste of time.” He told Kevin Wallace, a lawyer for the attorney general’s office, to get to his point after three hours of testimony from a former Trump accountant. 

“Mr. Wallace promised to connect the dots,” Engoron said.

An appellate court ruled that the statute of limitations applied to 2014, and Trump’s lawyers have pushed to dismiss allegations about deals that occurred before then.

Engoron, however, said that he has not changed last week’s ruling and his comments in court Monday afternoon only addressed evidence and testimony admissible at trial.  

Engoron noted that the attorney general is suing Trump not on the underlying transactions but on the financial statements that referenced them, which occurred after 2014 and are included in the AG’s claims.

Leaving court Monday, Trump incorrectly claimed that the judge had agreed that 80% of the attorney general’s case was thrown out because of the statute of limitations. 

Last week, Engoron ruled that Trump and his co-defendants were liable for fraud. It’s one of several allegations contained in the attorney general’s civil case against Trump, but it could lead to stiff penalties for his business. The attorney general’s office is seeking to bar Trump from doing business in New York.

Former President Donald Trump sits in the courtroom before the continuation of his civil business fraud trial at New York Supreme Court on Tuesday in New York.

 Former President Donald Trump continued to attack New York Attorney General Letitia James and the judge in his civil case, Arthur Engoron, as he arrived at the Manhattan courthouse Tuesday for the second day of his civil fraud trial.

“Her numbers are fraudulent — she’s a fraud,” Trump said of James. “And this case should be dismissed.”

Trump claimed that the judge had been given “extremely misleading information” about his net worth, complained about Engoron and cited Florida county tax records showing Mar-a-Lago was worth $18 million. Trump claims it’s worth as much as $1.5 billion.

The vast difference in valuations of Mar-a-Lago was one of the examples the judge cited in his ruling last week that Trump and his co-defendants were liable for fraud. 

“He’s been given false information, misleading information and corrupt information by a very corrupt and incompetent Attorney General Letitia James,” Trump said.

Trump is now in court for the second day of his civil trial.

Former President Donald Trump speaks as he arrives at a Manhattan courthouse in New York on Tuesday.

Former President Donald Trump on Tuesday continued railing against New York Attorney General Letitia James and her civil fraud case against him on the second day of his trial in New York. 

“The rarely used Executive Law that the N.Y.A.G. is proceeding under is VERY UNFAIR, and being used against me for that reason. NY Executive Law 63 (12) does not require a victim, traditional elements of fraud are eliminated (the only such law!), the law allows a politically elected partisan prosecutor to convince a politically elected judge, who may be friends, to destroy even a Political Opponent,” Trump posted on Truth Social.

Trump posted, “This law may not be Constitutional and is not FAIR, and that is why terrible A.G. James chose it to use against me!!!” 

Trump called James a “Monster” and a “Trump Deranged Lunatic.” He called the New York attorney general “Letitia ‘Peekaboo’ James.” 

“Now that it has been agreed in Court that Mar-a-Lago is WORTH 50 to 100 times the Value the Racist & Incompetent Attorney General of New York State, Letitia “Peekaboo” James, ascribed to it (18 Million Dollars), & likewise other assets that were valued crazily low by this “Monster” that has allowed Violent Crime in New York to reach EPIDEMIC levels, and dangerous illegal migrants to roam free all over our State, we hope the Judge will TERMINATE his first ruling of fraud in that he was given false and ridiculous information by the Trump Deranged Lunatic, A.G. James,” Trump posted. 

Trump posted, “In actuality, I am WORTH FAR MORE than the numbers put down on the Financial Statements, not less. In addition, there is a far reaching and professionally drawn Disclaimer Clause boldly stated on the FIRST PAGE OF THE DOCUMENT. This entire case should be thrown out and dismissed. The A.G. should be reprimanded and sanctioned for bringing this case with its FAKE LOW VALUES, in order to make me look bad. Election Interference!”

Some background: James brought a $250 million lawsuit last September alleging that Trump and his co-defendants committed repeated fraud in inflating assets on financial statements to get better terms on commercial real estate loans and insurance policies.

Judge Arthur Engoron has already ruled on one of the claims — persistent and repeated fraud — finding Trump, his adult sons, their businesses and executives liable for fraud. 

Former President Donald Trump speaks to the media before entering the courtroom at New York Supreme Court on Tuesday in New York.

Former President Donald Trump’s motorcade has arrived at court in downtown Manhattan for the second day of his civil fraud trial.

Court resumes at 10 a.m. ET.

Donald Bender, Trump’s former longtime accountant at Mazars, will continue testifying this morning.

New York Attorney General Letitia James arrives at New York Supreme Court on Tuesday in New York.

New York Attorney General Letitia James has arrived at court in downtown Manhattan for the second day of the civil fraud trial against Donald Trump, his eldest sons, their companies and Trump Organization executives.

She did not make a statement.

As she walked up the stairs of the courthouse building, a person outside yelled “go get ‘em,” and “thank you” and James turned around smiled and pointed at them. 

She is now in the courtroom.

Former President Donald Trump leaves Trump Tower to head to court for another day of his civil fraud trial on Tuesday in New York.

Former President Donald Trump has departed Trump Tower. He is expected to head downtown to be in court for the second day of his civil fraud trial, which he is voluntarily attending.

Trump wrote on Truth Social that he plans to be in court today.

“See you in Court on Tuesday morning!” Trump wrote.

This will be the second day in a row the former president will be in court. Trump appeared in court on Monday for the first day of the civil fraud trial against him and his namesake company.

Trump said on Truth Social the trial is allowing people to see “what a great company he built” and is “exposing great success.” 

The former president in the same post attacked New York Attorney General Letitia James and suggested to his followers, “don’t move your company to New York.”

Media set up outside of the Trump Tower in New York on Monday.

It’s where the “art of the deal” could be exposed as the “art of the steal.”

Donald Trump couldn’t stay away from the opening of his civil fraud trial in New York on Monday. But the choreographed motorcade of Secret Service SUVs, rants about politicized persecution and courtroom scowls went deeper than his now familiar attempts to turn his dates with justice into fodder for his 2024 campaign.

This time, the real estate shark was back in his old hunting grounds to defend his threatened empire, the Manhattan skyscraper bearing his name in big gold letters and ultimately the mythology of his career as a billionaire tycoon that nurtured his fame and insurgent rise to the White House. Being impeached twice is bad. Facing 91 criminal charges is terrible. But the fraud case in New York threatens to shred Trump’s cherished self-image as an ultimate winner. That may be worst of all for the ex-president who still touts his golf resorts, hotels, planes and businesses in campaign speeches as proof of what he sees as his stellar business acumen.

“It’s a scam, it’s a sham. Just so you know, my financial statements are phenomenal,” Trump said before the trial opened.

The paraphernalia of wealth is not simply about boosting Trump’s self-esteem. It is integral to his political appeal. While his history of bankruptcies, legal reversals and scandals has punctured his image among voters who disdain him, Republicans who love Trump still buy into his iconography as a hard charging businessman. That image was sent into overdrive by NBC’s “The Apprentice,” which helped turn the star of a reality show into a president and modern American demagogue. Taking kids on helicopter rides at the Iowa state fair or directing pilots of his personalized 757 to circle the field before airport rallies as speakers blare the theme to the movie “Air Force One” are all part of the theater that Trump concocts to portray himself as the ultimate self-made man who got rich despite elites spurning him for years.

This idea was encapsulated by one of his attorneys in court on Monday, who argued that far from inflating his wealth, her client may have played it down by not including the value of his image. “There would have been the brand, the same brand that got that man elected president,” Alina Habba said. “There’s a lot of people in this room that probably don’t like that, and that’s why we are here.”

So while this trial could punish Trump’s family by imposing huge financial and business penalties, and even lead to the break-up of his New York business and disposal of his buildings, it is about far more than punishments for the ex-president. It is taking aim at Trump’s core.

“They’re hitting him where it hurts,” one source told CNN’s Kaitlan Collins about Trump’s decision to attend the trial on Monday.

Read the full analysis.

Former President Donald Trump speaks at a Manhattan courthouse, where he attends the trial of himself, his adult sons, the Trump Organization and others in a civil fraud case brought by state Attorney General Letitia James, in New York City, on Monday, October 2, 2023.

Former President Donald Trump was in attendance at a Manhattan courtroom for the opening day of the New York civil case against him and his namesake company.

Even though he didn’t have to appear, Trump’s presence turned the courthouse into an extension of the campaign trail, where he has railed against the four criminal indictments against him, and now, a civil case where Judge Arthur Engoron ruled last week that Trump and his co-defendants were liable for fraud.

Inside the courtroom, Trump’s attorneys also sparred with the judge as opening statements began, a sign that they’re likely to take a combative approach with a trial that the judge expects to last into December.

The first witness for the New York attorney general, Trump’s former long-time accountant Donald Bender, is expected to continue testifying Tuesday about financial documents from 2011.  

Here’s what to know from the first day of Trump’s trial:

Trump labels it a “witch hunt”: In front of the cameras and on his social media site, Trump attacked New York Attorney General Letitia James for bringing the case against him. He attacked the judge for the ruling last week. And he sought to tie them to special counsel Jack Smith’s criminal indictments, even though they are unconnected.

“This has to do with election interference, plain and simple,” Trump said before walking into the courtroom. “They’re trying to damage me, so I don’t do as well as I’m doing in the election.”

Attorney general asks to ban Trump from doing business in New York: Kevin Wallace, with the attorney general’s office, alleged that Trump and his co-defendants conspired to commit persistent and repeated fraud and that Trump’s financial statements convinced banks to take on hidden risk “to the tune of hundreds of millions of dollars.”

The opening statement underscored the risk the case poses to Trump and the Trump Organization, the former president’s business in New York, where Trump built up his name and image before he launched the political campaign that led him to the White House in 2016.

Trump’s lawyers say this is how real estate works: With the former president looking on, Trump’s lawyers argued Monday that the attorney general’s case was flawed, saying that the differences in valuations were just part of the commercial real estate business.

Trump’s attorney, Christopher Kise, argued there was no intent to defraud and “no victims” in the case.

Kise pointed to documents from Deutsche Bank showing the bank valued Trump’s net worth $2 billion less than Trump did — but still underwrote the loan for Trump.

Judge spars with Trump attorneys: The judge noted that the defense team already had tried to dismiss the case by claiming James brought it as a “witch hunt” against Trump. He had already denied the motion, Engoron said, and his ruling had been affirmed by a New York appellate court.

The judge also sparred with Trump attorney Alina Habba over a discussion about an accounting disclaimer for Mazars, Trump’s former accounting firm. The disclaimer essentially said, “We’re relying on the Trump Organization,” Engoron said. “That’s how I read it.”

“No, your honor,” Habba responded, arguing that the Trump Organization relied on Mazars and “they’re the accountants.”

The exchanges underscored how the upcoming trial is going to be contested – especially when the judge, and not a jury, will decide the outcome.

Get caught up here

Former President Donald Trump arrives for a rally in Maquoketa, Iowa, on September 20.

Former President Donald Trump will be in attendance again Tuesday in a New York courtroom for the start of the civil fraud trial against him, his eldest sons, their companies and Trump Organization executives.

The civil trial over inflated assets in fraudulent financial statements comes less than a week after a shocking ruling by Judge Arthur Engoron that found Trump and his co-defendants are liable for “persistent and repeated” fraud.

Trump inflated his net worth by as much as $3.6 billion in three separate years between 2011 and 2021, according to the attorney general’s office. Attorneys for Trump have refuted the claims, arguing that asset valuations are highly subjective and that they are still sorting through what the ruling means for the company’s future.

What’s at stake at trial: Trump and his companies could be forced to pay hefty sums in damages for the profits they’ve allegedly garnered through their fraudulent business practices. 

Engoron will consider just how much the Trumps and their businesses will have to pay. 

The judge is expected to consider claims of business records fraud and insurance fraud alleged in the lawsuit in connection to high-profile properties, though he already determined some broad level of fraud was perpetuated.  

The six causes of action are falsifying business records, conspiracy to falsify business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud and conspiracy to commit insurance fraud.

James’ lawsuit also asks the court to consider banning the Trumps from serving as officers of a business in New York and to stop the company from engaging in business transactions for five years.

Judge Arthur Engoron poses for a picture in his courtroom in New York on September 28.

The New York civil fraud trial against former President Donald Trump, his eldest sons, their companies and Trump Organization executives continued Tuesday.

New York Attorney General Letitia James brought a $250 million lawsuit last September alleging that Trump and his co-defendants committed repeated fraud in inflating assets on financial statements to get better terms on commercial real estate loans and insurance policies.

Judge Arthur Engoron has already ruled on one of the claims — persistent and repeated fraud — finding Trump, his adult sons, their businesses and executives liable for fraud. 

Engoron will now decide on the six other claims:

The trial was expected to take up to three months but it will likely be shorter now that the fraud claim has already been settled.