By Aaron Miller-
Former U.S. President Donald Trump returned to a Manhattan courtroom on Tuesday to observe and express his displeasure with a civil fraud trial that has the potential to impact his real estate empire significantly.
The trial centers on allegations that Trump’s company manipulated property values to inflate his net worth, which, if proven true, could lead to the forfeiture of some of his most iconic properties, including Trump Tower.
While Trump is expected to take the witness stand later in the trial, he has been present for the first three days, using the opportunity to convey his dissatisfaction with the proceedings and share his perspective with the press camped outside the courtroom.
The case has been a matter of considerable importance to the former president, who views it as a direct challenge to his legacy and reputation.
The trial, brought by New York Attorney General Letitia James, alleges that Trump and his company engaged in fraudulent practices, deceiving banks, insurers, and other stakeholders by grossly inflating the value of his assets and exaggerating his net worth in financial statements.
Trump has consistently defended himself, insisting that his assets were undervalued and pointing to disclaimers on his financial statements as evidence that recipients should verify the information independently.
Star witness Michael Cohen, a former lawyer and confidant of Trump who has turned against him, was initially scheduled to testify but had to postpone due to a health issue. Instead, the trial saw testimonies from Trump company accountant Donna Kidder and outside appraiser Doug Larson.
Kidder’s testimony revealed that she was instructed to make assumptions that favored the Trump Organization on internal financial spreadsheets.
Similarly, Larson distanced himself from the methods employed by a former Trump Organization comptroller in assessing property values, emphasizing that the numbers didn’t align with standard practices.
The trial has implications that extend beyond the courtroom, with Trump labeling it a political vendetta aimed at sabotaging his potential 2024 presidential campaign.
He believes that James’ lawsuit is designed to undermine his reputation and presidential aspirations, given that he is a frontrunner in the Republican field.
“We built a great company — a lot of cash, it’s got a lot of great assets, some of the greatest real estate assets anywhere in the world,” Trump asserted outside the courtroom.
He dismissed the case as “a disgrace,” criticized the legal system as “corrupt,” and referred to the Democratic attorney general as a “radical lunatic.”
In response, James maintained her commitment to upholding the law. She emphasized the importance of accurate numbers in financial matters and stated that Trump’s entire empire had been “built on nothing but lies and on sinking sand.”
During the trial, Doug Larson, a real estate brokerage executive and certified appraiser, was surprised to discover that he had been cited as an outside expert in former Trump Organization controller Jeffrey McConney’s valuation spreadsheets.
Larson testified that such actions were “inappropriate and inaccurate” and that he should have been made aware of this usage. The discrepancies between Larson’s appraisals and those presented by McConney further cast a shadow on the case.
Trump’s appearance in court and his ongoing commentary outside have drawn attention to a case that goes beyond financial disputes. The trial, overseen by Judge Arthur Engoron without a jury, has already seen significant developments, with Engoron ruling that Trump and his company committed years of fraud by inflating asset values and net worth on financial statements.
As a result, a court-appointed receiver was ordered to assume control of some Trump companies, raising concerns about the future oversight of Trump Tower and other prestigious properties.