TL/DR –
Michael Cohen, a former Trump Organization insider, testified that Donald Trump instructed him to manipulate numbers on annual financial statements to show a more favorable net worth. This claim was part of a six-week trial brought against Trump by New York Attorney General Letitia James, who is seeking to prove that Trump and his company inflated values on financial statements to secure better terms from financial institutions. In response, Trump’s defense has denied wrongdoing, arguing that financial statements were legitimate and valuations subjective.
Former Trump Organization Insider Testifies in Court
In a New York state court, Michael Cohen, a former Trump Organization insider, testified that his ex-employer Donald Trump had directed him to alter numbers on yearly financial reports to reflect his preferred net worth.
Alteration of Financial Statements
Patrick Birney, an employee of the Trump Organization, testified that Trump sought a higher bottom line on annual statements provided to banks and insurance companies. The trial also presented a deposition from insurance underwriter Claudia Mouradian. She claimed she depended on the Trump Organization’s assertion that a statement reporting approximately $6 billion in combined golf and real estate assets had been verified by professional appraisers.
Trump Faces $250 Million Lawsuit
The testimonies were part of a six-week trial brought forward by New York Attorney General Letitia James (D). Her civil case aims to prove that Trump and his business inflated the values in his annual financial statements to gain better conditions from banks and insurers. James is calling for New York Supreme Court Judge Arthur Engoron to impose at least $250 million in fines on the company and prevent Trump and his family from operating in New York. Trump’s defense denies any wrongdoing.
Trump’s Defense to Present Case
The attorney general’s office concluded its case on Wednesday, with the defense team slated to present its case on Monday. Over the course of the trial, 25 witnesses were called upon to discuss documents and provide firsthand accounts. These included Trump, his adult sons Donald Trump Jr. and Eric Trump, and his daughter Ivanka Trump, all of whom denied knowledge about the creation of the financial documents under scrutiny. Donald Trump Jr. and Eric Trump testified they trusted the company’s accountants.
Legal Analysts See Potential Shortcomings
Legal analysts have noted possible weaknesses in the testimony, including the absence of an employee testifying that Trump directly ordered the values to be manipulated. Cohen, the sole person to do so, has previously confessed to perjury and holds a known grudge against Trump. There is also no trace of documents pointing directly to Trump, who famously avoids email communication.
The Implications of the Lawsuit
The lawsuit has evidently irritated Trump, with the former president attending and criticizing the trial throughout the proceedings. It also has substantial implications for him and his company. Engoron’s ruling that the company’s financial statements were fraudulent and his request for a receiver to be put in place to “dissolve” Trump’s entities in the state bear significant weight.
Trump’s Future Legal Challenges
This is a civil case, not a criminal trial, meaning the defendants are not at risk of imprisonment. However, Trump is contending with several other legal troubles, including four separate criminal cases filed against him this year. Amid all these allegations and indictments, Trump is also the leading candidate for the Republican presidential nomination next year.
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