‘Single greatest witch hunt’: Donald Trump fraud trial starts

Donald Trump sat sternly in a Manhattan court at the start of a civil fraud trial that has the potential to cripple his empire.

Donald Trump (C) sits with his attorneys inside the courtroom during civil fraud case brought by state Attorney-General Letitia James, at a Manhattan courthouse. Picture: AFP.

Donald Trump appeared in a Manhattan court Monday for the start of a civil fraud trial that has the potential to cripple his business, calling it the “single greatest witch hunt of all time.” The former president said nothing to New York state Attorney-General Letitia James as he entered the courtroom to face her allegations that he and his business falsified asset values for a decade and reaped roughly $250 million in ill-gotten gains. James, a Democrat, is seeking a range of sanctions that would prevent Trump from doing business in New York or with other institutions in the state. And she already secured a sweeping pre-trial ruling last week that ordered the cancellation of business certificates Trump needs to operate in New York.

The former president, dressed in a dark navy suit and azure tie, sat sternly with his arms crossed at the defence table alongside his lawyers in the ceremonial courtroom as the proceedings got under way.

New York Attorney-General Letitia James, leaves the court after day one of Donald Trump’s trial. Picture: AFP.

Before the proceedings began, Trump in the outside hallway offered harsh criticisms of James and the presiding judge, State Supreme Court Justice Arthur Engoron.

“We have a racist lawyer general who is a horror show, who ran on the basis that she was going to get Trump before she even knew anything about me,” he said. He called Engoron a “rogue judge” who has incorrectly valued Trump properties at a tiny fraction of their true worth.

On the courthouse steps, James, who is Black, said that Trump, as well as members of his family and company, and the other defendants had repeatedly committed fraud and her office would hold them accountable.

“No matter how powerful you are, no matter how much money you think you may have, no one is above the law,” she said.

James sued Trump a year ago, the first in a series of legal dominoes to fall against the former president as he has been building another run for the White House. He is now facing criminal charges in four separate cases, including one in a nearby courthouse scheduled for trial in late March that centres on hush-money payments to a porn star.

Donald Trump leaves for a lunch break during his civil fraud trial at the New York State Supreme Court in New York City. Picture: AFP.

In last week’s ruling cancelling Trump’s certificates, Engoron found that James already had proven a key fraud allegation. There are six claims remaining for trial, relating to insurance fraud, conspiracy and falsifying documents. Those claims require the lawyer general to demonstrate that the false valuations mattered and that Trump acted with fraudulent intent, the judge has said.

Kevin Wallace, a lawyer in James’s office, told the judge Monday that the state could meet that standard. “There is ample evidence of intent based on the defendant’s knowing, intentional lies,” Wallace said during opening statements. The falsities mattered because they allowed the Trump business to obtain better interest rates on loans and other benefits, he said.

Trump lawyer Chris Kise said the former president had made billions of dollars building one of the most successful real estate empires in the world. “He has made a fortune, literally, being right about real-estate investment,” Kise said, as Trump sat attentively with his hands clasped.

Kise told the judge that the financial statements had obvious disclaimers, that valuations were subjective and that the banks conducted their own analyses.

Another Trump lawyer, Alina Habba, said that the value of a property was what someone was willing to pay. “The Trump properties are Mona Lisa properties,” said Habba. “That is not fraud, that is real estate.” The trial could run through December and feature more than 100 witnesses. Trump’s appearance Monday led to a heavy security presence outside the courthouse. Metal barricades surrounded the perimeter, with New York Police Department officers and court officers stationed at checkpoints. Earlier in the morning, about a dozen anti-Trump demonstrators marched outside the courthouse, holding signs and chanting, “Trump lies all the time.”

Dow Jones