NEW YORK, NY – Lawyers for former President Donald Trump and New York Attorney General Letitia James clashed in a state court on Friday over allegations of systemic fraud at Trump’s family business. The hearing came just 10 days before the scheduled trial on October 2.
Justice Arthur Engoron is deliberating on requests from Trump, his sons Donald Jr. and Eric, and the Trump Organization to dismiss the case on grounds that there was no fraud, no harm was done, and the allegations are dated. On the other side, James is seeking a pre-trial judgment that the defendants are liable for fraud.
Engoron plans to issue a ruling on September 26, noting that the case extends beyond individual concerns. “We’re talking about fairness and honesty in the marketplace,” Engoron said during the near five-hour hearing.
James is seeking at least $250 million in penalties and aims to prevent Trump and his adult sons from running businesses in New York. She alleges that Trump manipulated financial statements between 2011 and 2021 to secure favorable loan and insurance terms, thereby defrauding banks and insurers.
Trump’s lawyer, Christopher Kise, countered that the evidence was insufficient and that valuation disputes were irrelevant to the case. “The foundation of the case is to ignore everything,” Kise said.
Engoron showed signs of impatience when Kise suggested that banks might not have relied on Trump’s property valuations. “You cannot make false statements and use them in business,” the judge said.
The hearing follows a lawsuit filed by Trump against Engoron, accusing the judge of delaying the case’s progression. Engoron is also slated to rule on James’ request to sanction the defendants for making what she termed “frivolous” arguments.
The appeals court is expected to make a decision next week on whether the trial will proceed as planned.
