Trump Rejoins Ongoing Civil Fraud Trial, Faces Damaging Testimonies from Employee and Appraiser

On Tuesday, Donald Trump returned to the ongoing civil fraud litigation that threatens his real estate holdings. He was present in court as both an employee and an independent property appraiser presented evidence suggesting manipulative practices in assessing the value of his real estate assets.

The lawsuit in question has the potential to compromise Trump’s significant properties, including the iconic Trump Tower. The former U.S. President is slated to testify at a later stage in the trial. Nonetheless, he made the decision to attend the initial three days and returned on Tuesday to both observe the proceedings and voice his objections to waiting media outside the Manhattan courtroom.

The anticipated testimony of Michael Cohen, once an ally but now an adversary of Trump, was deferred due to health reasons. In his stead, Donna Kidder, an accountant with the Trump Organization, revealed that she had been instructed to make advantageous assumptions on internal financial documents. Independent appraiser Doug Larson also spoke, disavowing the methods previously used by a former Trump Organization comptroller to appraise properties.

Doug Larson was especially critical of the former comptroller’s valuation of a Trump retail space in 2013 at $287.6 million, stating the figure did not align with standard appraisal techniques.

Outside the court, Donald Trump reiterated his claims of innocence and framed New York Attorney General Letitia James’ lawsuit as politically motivated, aimed at undermining his 2024 presidential ambitions. James’ lawsuit accuses Trump and his organization of deceiving financial institutions and other stakeholders by inflating the value of his assets and consequently, his net worth.

In court, Larson noted that the practices he observed in the valuation of Trump properties were “inappropriate and inaccurate.” During cross-examination, when asked whether Trump, as a real estate developer, was prohibited from valuing his own properties, Larson stated that he did not know of any such restrictions.

Trump Organization accountant Donna Kidder also testified that she was instructed by then-finance chief Allen Weisselberg to make certain projections that would improve the financial outlook of Trump properties. She was not aware that these assumptions would be used to positively affect the company’s financial statements, which in turn were utilized for securing financing and insurance deals.

Judge Arthur Engoron, a Democrat, is presiding over the trial without a jury, as mandated by the state law under which the suit was filed. Trump has been vocal in his criticism of both the law and the judge. Despite these attacks, Judge Engoron has proceeded to make a pretrial ruling that Trump and his organization engaged in years of fraudulent activities related to overstating asset values and net worth.

In addition to ruling on the case’s top claim, Engoron has also ordered the appointment of a court receiver to manage certain Trump companies, raising questions about the future management of key Trump properties. However, an appeals court has temporarily suspended the enforcement of this part of the ruling.

The remaining allegations under scrutiny in the trial include conspiracy, insurance fraud, and the falsification of business records.

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More about Civil Fraud Trial

• Overview of Donald Trump’s Civil Fraud Trial
• Key Witnesses in the Trump Civil Fraud Case
• The Legal Ramifications for Trump’s Real Estate Holdings
• New York Attorney General Letitia James’ Lawsuit Explained
• Judge Arthur Engoron’s Pretrial Decisions
• Donald Trump’s Reactions and Statements Regarding the Trial
• State Law Governing Civil Fraud Trials
• Remaining Claims in the Trump Civil Fraud Trial