More stories

  • in

    Trump’s Huge Civil Fraud Penalty Draws Skepticism From Appeals Court

    A five-judge New York appellate panel questioned both the size and validity of a judgment of more than $450 million against Donald J. Trump at a hearing.A New York appeals court expressed skepticism on Thursday about a civil judgment of more than $450 million that a trial judge had ordered former President Donald J. Trump to pay after finding that he had fraudulently inflated his wealth.At a hearing in Manhattan, members of a five-judge panel questioned both the size of the judgment and the validity of the case, which New York’s attorney general brought against the former president and his family business two years ago.While some of the judges appeared to acknowledge the substance of the attorney general’s case, several of the panel’s questions suggested concern about whether the office had exceeded its jurisdiction. And the tenor of many of their questions indicated the possibility that the court could whittle down the huge judgment and potentially deal a blow to the attorney general, Letitia James.Justice Peter H. Moulton, who seemed unswayed by many of the arguments by Mr. Trump’s lawyers, nonetheless said that “the immense penalty in this case is troubling.”The trial judge in the case, Arthur F. Engoron, found Mr. Trump liable for civil fraud last year, concluding that he had lied about his wealth to secure favorable loan terms and other financial benefits. The judge imposed the judgment against the former president in February after a lengthy bench trial.Judith N. Vale, New York’s deputy solicitor general, had barely begun addressing the court before one of the judges, David Friedman, interrupted her to cast doubt on the lawsuit. Other members of the panel inquired about possible “mission creep” by the attorney general’s office. They also questioned what “guardrails” might have ensured that Ms. James did not overstep her authority by second-guessing the net worth estimates that Mr. Trump had provided to lenders.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Letitia James Fights to Preserve Trump’s Over $450 Million Fraud Penalty

    Ms. James, New York’s attorney general, argued that the civil fraud judgment, which the former president has appealed, should stand. It could wipe out his cash reserves.The New York attorney general’s office late Wednesday night urged a state appellate court to uphold a more than $450 million civil fraud judgment against Donald J. Trump, arguing that the punishment was needed to protect “the integrity of the marketplace.”In a legal filing, the attorney general, Letitia James, defended a judge’s February ruling that Mr. Trump had conspired to inflate the value of his properties to receive favorable loans and other financial benefits. Mr. Trump, the attorney general’s office has argued, exaggerated his net worth by as much as $2.2 billion in any given year.“Mr. Trump indisputably participated in the fraud,” Ms. James’s office wrote in response to an appeal filed last month by Mr. Trump, adding that he, his adult sons and his company had “used a variety of deceptive strategies.”The response marked the latest phase of a battle between Mr. Trump and Ms. James that has spanned the better part of five years. The appeals court will hear oral arguments on Sept. 26 and its decision could come by year-end, coinciding with the final stretch of a presidential campaign that has pitted Mr. Trump against Vice President Kamala Harris.Ms. James, a Democrat who campaigned for her office on the promise of bringing Mr. Trump to justice, began to investigate the former president in 2019 and filed the lawsuit in 2022. Since then, Mr. Trump has lost nearly every step of the way. Even before the trial, the judge overseeing the case, Arthur F. Engoron, ruled against Mr. Trump, finding that he had committed fraud by inflating his assets.The trial was held largely to determine how much Mr. Trump, his company and his sons Eric Trump and Donald Trump Jr. would owe the state. Justice Engoron was the decider — there was no jury — and after 11 weeks and 40 witnesses, he ordered Mr. Trump to pay $355 million plus interest, a total of more than $450 million.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Custodial Witnesses Affirm Basic Facts in Trump’s Hush-Money Trial

    They have provided some of the more quotidian testimony in a trial populated by porn stars and presidents: a series of witnesses who have discussed such matters as FedEx labels, Sharpie usage and stapling protocol.But each of those witnesses has provided a link in the chain of custody of the 34 business documents at the heart of the case against Donald J. Trump, whose trial is completing its fourth week on Friday.Mr. Trump is accused of disguising those records as payments for legal services to cover up a reimbursement to Michael Cohen, his former lawyer and fixer. Mr. Cohen in 2016 had paid $130,000 to Stormy Daniels, an adult film actress, to bury her allegation of a sexual encounter with the former president.Such witnesses, known as custodial witnesses, are used to authenticate documents and events that have not otherwise previously been agreed to — stipulated, in legalese — by prosecutors and defense lawyers.Witnesses this week have included Madeleine Westerhout, a former executive assistant to Mr. Trump during his time in the White House. Ms. Westerhout, who spoke affectionately of Mr. Trump and broke into tears on the stand on Thursday speaking about her 2019 firing, testified about having received checks for Mr. Trump to sign, which he sometimes did in the Oval Office.Jeffrey S. McConney, the Trump Organization’s former corporate controller, also described in painstaking detail how Mr. Cohen requested the checks by invoice. They were then cut by Deborah Tarasoff, an accounts supervisor at the organization, and sent via FedEx to the White House by Rebecca Manochio, a junior bookkeeper at the company.Those checks left Mr. Trump’s headquarters in New York stapled to Mr. Cohen’s invoices and arrived in Washington, making their way to the White House through two of Mr. Trump’s aides, including Keith Schiller, Mr. Trump’s personal bodyguard, at their home addresses.A defense attorney, Susan Necheles, sought to downplay the sending of checks to an outside address, suggesting in questioning Ms. Westerhout that such an arrangement was simply “a workaround” to avoid things getting delayed in a crush of mail being received at the White House. Ms. Westerhout agreed.Once the checks were signed by Mr. Trump — often in Sharpie, according to testimony — they were sent back to New York, and eventually to Mr. Cohen, who is expected to be a key witness for prosecutors, beginning on Monday. More

  • in

    Los negocios de la familia Trump se enfocan en el golf, con ayuda de Arabia Saudita

    Golfistas aficionados hicieron fila el jueves en el hotel Trump National Doral cerca de Miami, tras acceder a pagar más de 9000 dólares por persona para jugar una ronda amistosa con algunos de los profesionales más importantes del mundo.Las habitaciones en el centro turístico se llenarán de fanáticos el viernes cuando inicie un torneo profesional en el que participarán los nombres más reconocidos del deporte. Los restaurantes y bares del complejo atraerán más clientes y el nombre Trump se repetirá por todo el mundo en la televisión y el internet.Detrás de este auge comercial en una de las propiedades de Donald Trump se encuentra el trato que el expresidente cerró para que sus recintos fueran sede de los torneos de LIV Golf, la liga emergente patrocinada por el fondo soberano de riqueza de Arabia Saudita.El entusiasmo de LIV por pagar para que Trump sea anfitrión de sus torneos en sus complejos vacacionales es solo un ejemplo más de los vínculos entre los sauditas y la familia Trump incluso ahora que busca ocupar la presidencia de nuevo, un acuerdo que sigue generando conflictos de una índole y escala únicas para Trump.Los jugadores practicaron el miércoles en vísperas de la primera ronda del torneo.Scott McIntyre para The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Trump Spoke Recently With Saudi Leader

    It is not clear what the former president discussed with Prince Mohammed bin Salman, but news of their call came amid Biden administration negotiations with the Saudis over a Middle East peace plan.Former President Donald J. Trump spoke recently with Saudi Arabia’s de facto ruler, Prince Mohammed bin Salman, their first publicly disclosed conversation since Mr. Trump left office in January 2021, according to two people briefed on the discussion who were not authorized to speak publicly about it.It was unclear what the two men discussed and whether it was their only conversation since Mr. Trump’s departure from the White House. Neither representatives for Mr. Trump nor an official of the Saudi government responded to requests for comment.But news of their discussion comes at a time when the Biden administration is engaged in delicate negotiations with the Saudis aimed at establishing a lasting peace in the Middle East, building on diplomatic ties between Israel and a number of Arab states forged through the work of the Trump administration.If President Biden manages to clinch a trilateral megadeal — which would probably include a Saudi-Israeli peace agreement, an Israeli commitment to a two-state solution, a U.S.-Saudi defense treaty and U.S.-Saudi understandings on a civilian nuclear program in Saudi Arabia — he will need support from two-thirds of senators to ratify the U.S.-Saudi treaty. Mr. Trump, as the presumptive Republican nominee in firm command of his party, could potentially either block any deal or greenlight it for congressional Republicans.Mr. Trump has other reasons to maintain warm relations with Prince Mohammed. The former president and Jared Kushner, his son-in-law and former senior White House adviser, established close ties with the crown prince while in office and have capitalized on that good will in their private businesses since leaving government.Saudi Arabia was the first stop on Mr. Trump’s first foreign trip as president — a sign of the value Mr. Trump placed on the relationship. Mr. Trump pursued major deals with the Saudis, including arms sales, and he defended Prince Mohammed at his moment of greatest international pressure, after the C.I.A. concluded that the crown prince had ordered the killing of the dissident journalist Jamal Khashoggi in 2018.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    What the Civil Fraud Ruling Means for Trump’s Finances and His Empire

    Justice Arthur F. Engoron’s decision could drain all of former President Donald J. Trump’s cash, and will set his family business reeling.Donald J. Trump lost his civil fraud trialon Friday, as a judge found him liable for violating state laws and penalized him nearly $355 million plus interest. In total, Mr. Trump is expected to have to pay more than $450 million.The judge, Arthur F. Engoron, did not stop there. Along with other punishments, he also barred the former president from leading any company in the state, including portions of Mr. Trump’s family business, for three years. In doing so, he granted requests from the New York attorney general, who brought the case, accusing Mr. Trump of violating state laws by inflating his net worth in documents submitted to lenders.Mr. Trump will appeal, and the case could take months if not years to resolve.But Justice Engoron’s decision could inflict immediate pain, threatening the former president’s finances and his influence over the Trump family business, known as the Trump Organization. The threat is not existential — the judge did not dissolve the company, and Mr. Trump is not at risk of bankruptcy — but the decision dealt him a serious financial blow, along with a symbolic swipe at his billionaire image.The attorney general, Letitia James, said in a news conference Friday evening that “when the powerful break the law and take more than their fair share, there are fewer resources available for working people, small businesses and families.”She added: “There cannot be different rules for different people in this country, and former presidents are no exception.”Here’s what we know about how the ruling affects Mr. Trump and his empire:How will he pay the $450 million?Mr. Trump has 30 days to come up with the money or secure a bond.A company providing a bond will essentially assure the State of New York that Mr. Trump has the money to pay the judgments. The bond will prevent authorities from collecting while his appeals are heard.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Trump’s Allies Pledged Loyalty to Him. Until They Didn’t.

    The former president is facing down Michael Cohen, his longtime fixer, in a Manhattan courtroom, while other ex-loyalists are cooperating in a case against him in Georgia.Donald J. Trump could not hide his anger. Sitting at the front of a crowded New York courtroom this week, he folded his arms tightly across his chest. He tossed his head and scowled. He stared into the middle distance and scrolled through his phone.His ire was directed at Michael D. Cohen, his former personal lawyer and fixer, who had taken the witness stand 15 feet away and had promptly called Mr. Trump a liar. Mr. Cohen has told his share of lies as well. But in court, he swore he had done so “at the direction of, in concert with and for the benefit of Mr. Trump.”Mr. Cohen’s two days of dramatic testimony this week provided the first glimpse of what could become a familiar scene: Mr. Trump, sitting at a defense table, watching as a lawyer who once did his bidding now cooperated with the authorities seeking to hold him to account.On the same day Mr. Cohen began his testimony, Jenna Ellis, who had sought to help Mr. Trump overturn the results of the 2020 election, pleaded guilty to state charges in Georgia. She was preceded by Sidney Powell and Kenneth Chesebro, both lawyers who worked with Mr. Trump’s campaign, both now expected to cooperate in the criminal case that the Georgia prosecutors brought against him.The circumstances surrounding the Georgia criminal case and the Manhattan civil fraud trial are vastly different. But near the center of each case are lawyers who pledged public fealty to Mr. Trump — until they very publicly did not.Mr. Trump has long relied on a phalanx of legal attack dogs to speak on his behalf, or to do or say things he would rather not do or say himself. And because Mr. Trump has such a tenuous relationship with the truth, those lieutenants often spread a message that prosecutors and investigators consider to be outright lies. Lies about an election he lost, a relationship with a porn star he may have had and a net worth he may not quite have achieved.Now those statements are ricocheting back at Mr. Trump as he contends with the civil trial in New York, brought by the state’s attorney general, Letitia James, and with four criminal indictments up and down the East Coast. And while Mr. Trump is quick to blame his betrayers — Mr. Cohen is “proven to be a liar,” he said outside the courtroom this week — his predicament was born from his own lopsided approach to relationships.Mr. Trump has a history of disavowing people who were once close to him and find themselves in trouble. He had long since cut ties with Mr. Cohen — until Tuesday, they had not seen each other in five years — and more recently he distanced himself from the lawyers in the Georgia case. He had also refused to pay their mounting legal bills.Their relationships, a one-way street flowing in Mr. Trump’s direction, appeared to work for a time. But when those loyal soldiers faced their own legal jeopardy, their allegiance to the former president became strained or even shattered.There have been exceptions since Mr. Trump’s split with Mr. Cohen. Mr. Trump’s political action committee has picked up the legal bills for his co-defendants in the federal criminal case involving his handling of classified government documents, as well as those of several witnesses connected to the case.Mr. Trump’s company also agreed to dole out a $2 million severance payment to his longtime chief financial officer, Allen H. Weisselberg, and continues to pay for Mr. Weisselberg’s lawyers. Mr. Weisselberg pleaded guilty to tax fraud and testified at the company’s criminal trial last year, but has stopped short of turning on Mr. Trump.Mr. Cohen was among several in a series of people who Mr. Trump turned to over decades in the hopes they would emulate his first fixer and defender, the lawyer Roy Cohn. “Roy was brutal, but he was a very loyal guy,” Mr. Trump told one of his biographers, Timothy O’Brien, in an interview. “He brutalized for you.”That brutality — along with Mr. Cohn’s method of conflating public relations defenses with legal ones, making showy displays in court and accusing the federal government of “Gestapo-like tactics” against Mr. Trump in a 1970s suit alleging housing discrimination — became Mr. Trump’s preferred model for a lawyer.Mr. Cohen has often said that those sort of tactics influenced what Mr. Trump looks for in those who defend him.While it is unclear how useful Ms. Ellis and the other two lawyers will be to the case against Mr. Trump in Georgia, Mr. Cohen has already been tormenting Mr. Trump for the last five years. Ms. Ellis became critical of him publicly in the last several months.Mr. Trump made a point of attending the trial in Manhattan this week to watch Mr. Cohen’s testimony in person.Dave Sanders for The New York TimesFor Mr. Trump, the feud with Mr. Cohen is personal. Although he is running for president and fighting the four indictments, none of those obligations could pry him away from the Manhattan courtroom to watch Mr. Cohen’s testimony. Mr. Trump did not have to attend the testimony, but people close to him say he believes events go better for him when he is present.Mr. Trump’s falling out with Mr. Cohen stemmed from their dealings with the porn star Stormy Daniels.In the final stretch of the 2016 presidential campaign, Mr. Cohen paid Ms. Daniels $130,000 to silence her story of an affair with Mr. Trump years earlier — an affair that Mr. Trump denied had ever taken place.The deal came to light in 2018, and soon, the F.B.I. had searched Mr. Cohen’s home and office. As Mr. Cohen’s life imploded, Mr. Trump began to distance himself from his fixer, and eventually, his company stopped paying Mr. Cohen’s legal bills altogether.Mr. Cohen soon lashed out and began to speak with prosecutors. When he pleaded guilty that year for his role in the hush-money deal, he stood up in court and pointed the finger at the then-president. Mr. Trump, Mr. Cohen declared, had directed the payment of the hush money.Although the federal prosecutors declined to indict Mr. Trump, this year the Manhattan district attorney’s office brought charges against him related to the deal, using Mr. Cohen as a potential star witness for a trial scheduled to start in the spring. Mr. Cohen has also testified before Congress that the former president’s company had manipulated financial statements to reach Mr. Trump’s desired net worth. That testimony was the catalyst for Ms. James to open her investigation.When Ms. James’s team questioned Mr. Cohen on Tuesday, he repeated many of the same accusations, testifying that Mr. Trump had directed him to “reverse engineer” annual financial statements to reach the former president’s desired net worth.Mr. Cohen spoke calmly and confidently as he recounted Mr. Trump’s obsession with his net worth.But the Trump team’s cross-examination exposed the perils of relying on a disgruntled former aide, especially one as temperamental as Mr. Cohen.Mr. Trump’s lawyers seized on Mr. Cohen’s inconsistent statements about the former president and his own crimes, leading him to admit to having lied a number of times. Toward the end of the second day of cross-examination, Mr. Cohen appeared visibly flustered as he tripped over rapid-fire questions about whether Mr. Trump had personally directed him to inflate numbers on his annual financial statements. Mr. Cohen said he had not, prompting Mr. Trump and one of his lawyers, Alina Habba, to throw their hands up in victory.Ms. Habba also resurfaced a series of glowing remarks Mr. Cohen once made about his boss, further underscoring his about-face.“I think he’s going to be an amazing president”; “I’m the guy who would take the bullet for the president”; “I think the world of him, I respect him as a business man and I respect him as a boss,” Ms. Habba emphatically read, as she circled the courtroom with a hand-held microphone like a preacher delivering a sermon.This appeared to delight Mr. Trump, who turned to watch Ms. Habba while draping his arm over her empty chair.Before Mr. Cohen completed his testimony on Wednesday, one of Mr. Trump’s lawyers asked Justice Arthur J. Engoron to dismiss the case, citing Mr. Cohen’s contradictions.Justice Engoron denied the request, and Mr. Trump stormed out of the courtroom.Kate Christobek More