#Trump #Fraud #trial #Day5 🧵:
Trump’s lawyers plan to take action today against #Engoron's #SummaryJudgment.
They plan to file a #stay pending #appeal before #NY #AD1. In court yesterday, they refused to reveal the #scope of the requested stay.
Engoron's ruling found that Trump & his companies had committed repeated #fraud, & canceled #business certs for LLCs “controlled or beneficially owned” by Trump, his sons #DonJr & #EricTrump, & 2 #TrumpOrganization execs.
Late last night, #Trump filed notice to voluntarily #dismiss his $500M suit against #MichaelCohen.
TFG was supposed to sit for a #deposition in the case on Monday. Trump had delayed the depo 2x.
Trump sued Cohen just days after Trump’s 1st #criminal #indictment in April, Cohen is the the star witness in the #StormyDaniels #HushMoney case.
Cohen said that the reversal validates his claim from the beginning that Trump filed the case to #intimidate him as a witness in more than one case.
#McConney is first on the stand today; followed by #AllenWeisselberg on Tues; after that, #NickHaigh, a risk manager w/ #DeutscheBank; then #PatrickBirney of #TrumpOrganization, & depending on time, #MichaelCohen by the end of next week.
Justice #Engoron called the trial to order, & McConney is on the stand. McConney is also a #defendant in the case. Today he’s to be questioned about the Trump Org’s relationship w/another #RealEstate company, #Vornado.
#Trump lawyer #AlinaHabba objects to the questioning, which she says is leading.
#AndrewAmer, lawyer for the NYAG, calls #McConney a hostile witness. #Habba says he is not a hostile witness & #Engoron wryly says, "he is the defendant." The objection is overruled.
FYI McConney was deemed a #HostileWitness in the #criminal #TaxFraud case last November as well.
#TrumpTrial #law
https://www.bloomberg.com/news/articles/2022-11-14/trump-controller-mcconney-is-declared-a-hostile-witness-by-judge
#NYAG #Amer questions #JeffMcConney more about how he #valued specific #Trump #properties & what info he may have excluded from his accountants’ assessment.
Note: Trump’s principal lawyer #ChrisKise is absent today.
Trump's legal team this morning filed a stay request to the state #Appellate Division (#AD1), to halt the #trial & #dismiss #Engoron’s #SummaryJudgment. #Kise, who was Florida’s solicitor general, (the top FL appellate lawyer). So presumably he’s dealing w/ they stay.
More on the #stay & #dismissal filing:
#Engoron's #SummaryJudgement #fraud ruling canceled Trump's #NY #business licenses & ordered #dissolution of defendants’ NY #LLCs due to persistent fraud.
The filing to stay called the ruling a "grave miscarriage of justice."
"The far-reaching implications of its unprecedented directives are of staggering consequence to Appellants.”
The filing called the move "corporate death sentences,” & said that Engoron did not have the authority.
The filing also says the #penalty against mult companies is one the AG hadn't requested
"Supreme Court’s order directs that all affected entities must be dissolved by a receiver. This is forfeiture & a taking, all w/o any #authority or #jurisdiction," arguing an immediate stay is needed bc it leaves the #Trumps & their #business assocs "unable to engage in lawful business enterprises, upon which hundreds of non-party individuals depend for their livelihoods."
(Since when do they do LAWFUL biz?)
It asserts that a #stay is needed bc #Engoron misapplied an #AD1 ruling on statute of limitations issues.
A "stay of trial is necessary to avoid Supreme Court proceeding further on dismissed claims, to avoid an avalanche of compounding errors, & to afford Appellants any semblance of process, let alone the due process guaranteed to any litigant regardless of status or social standing.”
Both sides have until the end of Oct to suggest #receivers to oversee the #dissolution of the #LLCs.
Back to #McConney #witness / #defendant #testimony:
#NYAG #Amer delves into a flagrant instance of #fraudulent #valuations.
#Trump’s #SevenSprings estate planned to build 7 mansions on the property valued at $23M each.
McConney confirmed that in 2012, #EricTrump was involved w/the development of the #Westchester, NY, property & that he (McConney) assumed all necessary approvals were obtained prior to build.
🚨🚨#McConney testifies that he understood the concept of #TimeValue (the value of a dollar today is worth more than the value of a dollar in the future) & that discounts should be applied to arrive at a present #value if money is going to be paid in the future.
The $161M for the 7 planned homes, which was baked into the #SevenSprings #valuation, was never discounted for the yrs it would take to build them, the cost of marketing/building/etc.
🚨🚨 Instead, #McConney treated the profit of $23M per home as if it were immediately realizable in 2012.
In 2013 & 2014, the #valuation for the 7 homes was done exactly the same way. He also wrote in his spreadsheets that the valuations were based on telephone calls in each of 2013 & 2014 w/ #EricTrump, who confirmed he should continue to #value the planned homes at #SevenSprings in the same way.
(Yikes)
The homes were NEVER BUILT.
By 2015, the #TrumpOrganization instead donated the rights to the land through a “conservation easement,” which would ensure the land would not be developed — & also gave the Trump Org a huge #TaxDeduction.
So much fraud.
Now #JeffMcConney is testifying about the #valuation of #Trump’s #BriarcliffManor golf course.
McConney's valuation of the property changed from $25.1M in 2012 to >$100M in 2013.
#McConney said the jump was due to a Sept 25, 2013 phone call had w/ #EricTrump.
Eric told him the sale of 71 "midrise units" were approved on the property but put on hold.
NYAG's introduced an #appraisal done by Cushman & Wakefield in 2014 that assessed #Trump’s #BriarcliffManor property value of an "easement donation" related to the 71 units on the property at $43.3M
Despite the appraisal, #McConney valued the property the same ($101M) in 2015 - 2018 after a Nov 17, 2015 phone call w/ #EricTrump.
"Leave value as is," Eric Trump told him in the call, McConney said.
#McConney #TrumpTrial #testimony cont.
The statements of #financial conditions included, at a min thru 2016 & 2017, the “goodwill attached to the #Trump name has significant value.”
McConney, however, conceded that the golf course valuations routinely included a “brand premium” of 30% & later 50%, beginning in 2013.
#McConney testified that he valued #MarALago from 2011 - 2021.
Each year he valued the property as if it could be sold as a private residence.
However, #Trump had signed a 2002 deed w/National Trust for Historic Preservation that required it only be used as a club.
#NYAG #Amer introduced a 2007 #appraisal of MAL that McConney had reviewed.
The appraisal included the above mentioned deed, showing McConney knew about it , despite the fact that he valued the prop as if it were a private residence.
Valuations of the #MarALago property as a private residence were for $426.5M in 2011 & $531.9M in 2012.
“You knew about this appraisal & had a copy of it in 2011?” #Amer asked. #McConney responded affirmatively.
The value included in the 2007 appraisal was not shown in court, but the AG alleged the #TrumpOrganization inflated its value by as much as $714M dollars between 2011 & 2021.
#NYAG #Amer asks McConney if #AllenWeisselberg asked for his help in committing #TaxFraud, more than once.
#McConney said yes.
McConney also admitted he was directed by #Weisselberg to process a payroll check to Weisselberg’s wife (not an employee) so she could get SS benefits.
McConney he didn’t know it was illegal, prompting Amer to show McConney his testimony from the Weisselberg / #TrumpOrg #criminal #trial last yr, in which he acknowledged he knew it was not lawful.
(*see ↑ article)
#McConney testified that he continued to engage in illegal conduct because #Weisselberg was his boss & if he refused, he would probably get fired.
(Just following orders excuse has never gone over well.)
Court adjourned; the trial resumes Tuesday.
Defense does not want to cross-examine McConney (can’t imagine why), therefore expect Weisselberg on the stand Tues.
Earlier today, the #NYAG requested #AD1 deny Trump’s filing for a stay of the trial.
The NYAG said staying the #trial would be disruptive & would "severely undermine the fair & orderly administration of justice, both in this action & in other actions against defendant Trump that are pending in other federal & state courts."
It also noted that AD1 denied another #Trump request for a stay "just 8 days ago."
"Defendants are now rehashing the same arguments that this Court already rejected”
The NYAG’s response said #Trump & the other defendants are attempting “to sow #chaos by disrupting an ongoing #trial that has now been going for a week. Yet defendants fail to point to any purported irreparable #harm from proceeding w/a trial that has already begun.”
“And tellingly, they waited until after Mr. Trump decided to stop attending the trial.”
The response also says a #delay would create a “cascade of delays in not only this case but also other litigation involving Mr. Trump.”
“If the trial here is delayed at all, there is a significant risk that defendants will request further delays of trial based on the deadlines in these other cases. Indeed, defendants already appear to be attempting to play one court against the other,” the motion reads.
#Trump's filing to #AD1 also sought an immediate stay of #Engoron's decision canceling some of the Trump entities' #business certificates & dissolving various #LLCs, calling the move "corporate death sentences."
In regards to that request, the #NYAG said it had “informed defendants of its willingness to discuss staying enforcement of portions of that relief pending trial & entry of final judgment, provided that the trial continues to move forward.”
(boo!)
#Trump & his co-defendants haven’t agreed to engage in those discussions.
The AG's filing adds, “there should be no resort to the emergency of this Court when the parties have not even had an opportunity to determine if they can reach an agreement."
The #NYAG's office says the appellate court should consider the significant court resources arranged for the #trial, like "special #security arrangements outside & inside the courthouse, many additional security & other court personnel to conduct those security arrangements, & special arrangements to ensure access for the press & public."
(And let’s be real, much of the extra security is because of #Trump’s repeated #threats, #violent #HateSpeech & continuing #incitement)
Just now:
The #NewYork #appeals #court, #AD1, halted the process of breaking up #Trump’s #businesses but rejects the request to #stay the #trial.
Associate Justice Peter Moulton issued the ruling after a brief hearing Fri afternoon.
#law #legal #Fraud #TrumpTrial
https://apnews.com/article/donald-trump-letitia-james-fraud-new-york-77f3691ad7fa73ea008f058ae6f772d6
Donald Trump’s civil fraud trial will roll ahead next week after he lost a bid to postpone it. A New York appeals judge rebuffed his request Friday. The former president wanted to halt the trial while he fights a pretrial ruling that could strip him of control of such assets as Trump Tower. The appeals judge did agree that control over the holdings will stay as-is for now. Trump is being sued by New York Attorney General Letitia James. Her office said the fraud trial should continue.
Justice Peter #Moulton’s ruling pauses the part of the order directing the #Trump #business certificate cancellations while the #appeals court considers the issue, but refused to #delay the #trial or block the other parts of #Engoron’s ruling.
#law #legal #Fraud #TrumpTrial
https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=icW_PLUS_422b3TJ12AMchhA3Ng==
#Moulton’s ruling will remain in place until a full panel of #appeals court judges can consider the case & rule whether #Engoron’s ruling can stand.
The trial is scheduled to go thru Dec. In addition to the cancellation of Trump’s #business certs, #NYAG is also asking the court to impose a $250M fine on #defendants, as well as impose such penalties as barring #Trump & his sons from running any #NewYork businesses@& prohibiting TFG from #commercial #RealEstate acquisitions for the next 5 years.
Separately & in obvious retreat, #Trump's attys agreed to #drop a #lawsuit they filed against #Engoron & #NYAG #LetitiaJames in Sept.
The action accused the judge of ignoring an appeals court order.
The filing further asserted that James “created unjustifiable ambiguity, interfered w/the orderly pre-trial process, & exposed the Court & the Defendants to the prospect of a needlessly-protracted trial by her refusal to acknowledge the First Department’s statute-of-limitations ruling.”
The suit memo concluded, “The Appellate Order is dispositive of many of the #NYAG’s claims & significantly reduces the scope of issues to be tried, thus shortening the length of the trial.”
Last night, #Trump & his co-defendants notified #AD1 that they've agreed w/ the #NewYork #AttorneyGeneral #LetitiaJames' office to #discontinue the suit.
So, essentially admitting, none of that was true.
Nonilex
