Laffy74/ Klasfeld:
Wallace shows Trump evidence showing that 40 Wall Street ran a cash flow deficit of $8.7 million in March 31, 2015.
Trump says they made a lot of investments to the building.
"I spent a lot of money on fixing the building up."
75/ I'm not posting Klasfeld's screenshots, but you get the idea.
Klasfeld:
Trump, on NYAG Letitia James:
"She doesn't even know what 40 Wall Street is."
đđŒNYAG is visibly cackling at the remark for a bit, then puts her head down to compose herself.
These two dots show the NYAG's office in relation to 40 Wall Street.
(They're right next to each other.)
76/ Via Emptywheel:
I hope to hell Jack Smith has a witness on hand watching this...
All very predictable. But it has to be accounted for.
77/ [Me: Some of my fave words: "Trump concedes.."]
Klasfeld:
Q: "Mr. Trump, are you the one who told a reporter for the Wall St Journal that there was a $600 million appraisal for 40 Wall S?
Trump says he doesn't remember something from 12 years ago.đ€
AG's counsel shows email from Don Jr. to Trump Org execs on 1/22/12, which says, in part, "djt told [the reporter] the 600 [number] so he will be happy if that gets printed."
đ€Trump concedes he was the "djt" his son referred to in the email
78/ Via MSNBC site, Jordan Rubin:đ
Normal witnesses donât try to take papers from their pockets and then try to read them from the witness stand. But we got another reminder of how this is not a normal trial and how this isnât a normal witness on the stand.
Unsurprisingly, Judge Engoron denied Trumpâs attempt to do this â because itâs not a thing.
LUNCH RECESS
79/ LOVE. đ„
Via Hayley Miller:
The court is now in recess for lunch until 2:15 p.m. ET.
James, the New York attorney general, seized on the opportunity to take a jab at Trump, seeming to mock the former president's claim that she "doesn't know what a 40 Wall Street is," referring to one of his Manhattan properties.
80/ Heads up.
Klasfeld:
The AG's attorneys return to court.
81/ Via Jordan Rubin:
After a rough morning in court, should we expect a disciplined Trump to emerge in pm session?
OK, the q answers itself. But we got some evidence that further confirms the obvious.
Trump took to Truth Social site during break [Me: see my earlier toot]
...obviously judge is there to hear what parties have to say. But judge tk Trump to task for his meandering testimony that didnât answer the q's asked of him â key context that's missing from Trumpâs social media post.
82/ Thank you all for remembering to add "Not for Laffy" in your responses. It really helps.
Also, remember: I have to leave a little early, so I'll add whatever there is left when I get back.
And thanks for all the kind words.
Okay, back to the salt mines.
LIE (vs "live") thread continues.
83/ Via Jordan Rubin:
Asked during the break if sheâll urge Trump to answer questions more concisely after a rambling morning of testimony that drew Engoronâs ire, Trump lawyer Alina Habba said she wouldnât try to limit her clientâs free speech.
To be sure, Trumpâs free speech rights arenât at issue here. A trial witness doesnât have the right to answer a lawyerâs questions however they want to. For better or worse, judges are largely in control of managing that process.
84/ Klasfeld:
We're back.
NYAG's counsel Kevin Wallace shows Trump a piece of evidence related to a loan agreement, attached to an email.
Trump's signature is on the document.
85/ Lisa Rubin for next few, re earlier:
During the lunch break, a colleague less steeped in the minutia of this case asked me whether the AGâs team is scoring any points, given how often Trump has digressed or ranted. Indeed, they have.
They have shown, for example, that despite having no memory of telling a Wall Street Journal reporter that a particular building was valued at $600 million, a contemporaneous email from his son showed he, in fact, did exactly that.
86/ The AG's team has shown that despite much lower, and sometimes even negative net revenue from leasing that same building, Trump told a Forbes reporter â on tape â that that building âthrew offâ between $50-60 million per year, another conversation Trump did not recall.
87/
They have shown that Trumpâs financial statements dating back nearly a decade valued his Aberdeen property in Scotland as if he could sell thousands of homes tomorrow, when Trump admitted that he still has not used that property for anything but building a second golf course while holding onto 1,000 acres on which those residences were supposed to be built.
They have shown that Trumpâs financial statements dating back nearly a decade valued his Aberdeen property in Scotland as if he could sell thousands of homes tomorrow, when Trump admitted that he still has not used that property for anything but building a second golf course while holding onto 1,000 acres on which those residences were supposed to be built.
88/ And perhaps most damning of all, they exposed that despite signing promises to the Town of Palm Beach and the National Trust for Historic Preservation that he would never use or develop Mar-a-Lago as anything but a private membership club, Trump valued Mar-a-Lago on his financial statements as a private residence, as if those contractual agreements were as disposable as Kleenex.
89/ Now that we are back from lunch, the focus has turned to Trumpâs borrowing relationship with Deutsche Bank and the representations made to it in connection with a series of loans. Will the next two hours be similarly productive? Watch this space.
90/ Klasfeld:
Under the terms of the agreement, Trump had to maintain unencumbered liquid assets of $50 million.
Q: Do you believe you complied with this?
A: Yeah, I had a lot of cash.
I've had a lot of cash for a long time."
Under the agreement, Trump also had to maintain minimum net worth of $2.5 billion.
(In 2012, Trump's net worth was $1.8 billion, according to the AG's calculations, based on third-party appraisals.)
91/ Klasfeld:
Kise makes his usual statute of limitations objection on a term loan agreement from late 2012, which the judge, as usual, overrules.
đđŒTrump smiles broadly at the ruling.
When it's entered into evidence, he shakes his head. Then, he inspects the document.
The agreement required the guarantor to supply "true and correct" financial statements.
92/ Andrew Weissmann is having an ALL CAPS moment:
AG GETS TRUMP TO AGREE THAT THE FINANCIAL STATEMENTS AND TRUMP'S PERSONAL GUARANTY WERE TO INDUCE BANKS TO LEND MONEY. KEY FACT FOR THIS FRAUD CASE
93/ Back to Klasfeld:
This is building a record for the heart of the AG's caseânamely, alleging that Trump sent fraudulent statements of financial condition to banks & insurers to obtain favorable terms.
That's what the judge found on the top count, and what's to be determined on the other counts.
94/ Klasfeld:
In prior testimony, NYAG's office called att to covenants requiring that Trump maintain a certain net worth & liquidity to obtain favorable rates on loans.
Trump argues again it wasn't fraud bc the banks "got all their money back" and the loan was "paid off in full."
"The bank was thrilled," Trump testifies. "There was no loss of money. They made a lot of money, and everyone is trying to figure out why you're doing it. [...] I understand it. It's called 'politics.'" đđ€Šđ»ââïž
95/ Klasfeld:
Context:
NYAG argues that Trump's fraudulent financial statements led banks to assume greater risk w lower interest rates than they otherwise would.
They argue this led the banks to lose $168M they would have made in interest.
96/ Klasfeld:
That's why the AG's counsel keeps showing Trump loan agreements that obligate Trump to:
* supply "true and correct" financial statements
* maintain a certain net worth (usually $2.5 billion
* maintain certain liquidity (under the heading unencumbered liquid assets)
97/ Klasfeld:
Trump:
"The net worth of me was far greater than the financial statements. So I don't know what you're getting at."đ
98/ Klasfeld:
Trump:
"You're going into ancient history."
He complains again on the statute of limitations and goes into a lengthy monologue about the disclaimer clause.
"Therefore, you have no case."
During that speech, Trump said that the disclaimer clause "goes on forever," in one of his many talking points.
đđŒThe AG's counsel deadpans: "That clause isn't the only thing that goes on forever."đ
(Laughter in the court.)
99/ Rubin is back, next few are hers:
Wallace, state attorney, ques Trump about his loan agreement w Deutsche Bank for the Trump Chicago hotel & residences.
Trump not only guaranteed the residential & hotel segments of that loan but also made a series of representations and warranties to induce Deutsche Bank to lend to him. One of them is that his statements of financial condition are true and accurate in all material respects and present fairly his financial condition as of June 30 of each yr
100/ Rubin:
The agreement also obligated him to have unencumbered âliquid assetsâ of not less than $50 million. Trump confirms he was aware of this obligation, and says he believes he complied, even if Deutsche Bank was only concerned with his cash on hand.
Trump also affirms that he understood Deutsche Bank required that he maintain a net worth of at least $2.5 billion, but he testifies that he could have presented a handful of assets and âthey would have been satisfied.â
101/ Rubin:
Trump grows angry during questioning on D.C. property
Weâve now moved on to the loan for the Old Post Office property, which Trump turned into the Trump International Hotel Washington DC, the unofficial clubhouse of the MAGA movement during his presidency. Trump famously sold the Old Post Office lease for $375 million last year, making this property ripe for disgorgement claims from the N.Y. attorney general.
102/ Put another way, if Trump and others deceived Deutsche Bank to get favorable lending terms and a lower borrowing rate, their profits from the sale of the property could be clawed back from various defendantsđđŒ
103/ Indeed, Wallace is now demonstrating how the Old Post Office loan agreement contains the same representations and covenants that Trump made in other Deutsche Bank agreements, including with respect to a minimum required cash balance, a minimum total net worth, and his obligations to provide fair and accurate financial statements for the current and prior years.
104/ Still Rubin:
Trump is now not only insisting that he complied but that his assets, as a whole, were worth much more than the total value listed on his statements of financial condition. âThe numbers are far greater than the $2.5 billion,â he insists, growing angry. âTherefore, you have no case.â
[Me:That's where the laughter came in upthread]
105/ Klasfeld:
How the judge jettisoned the "worthless clause" defense before trial, in the ruling ordering the dissolution of Trump's New York business empire.
His "reliance on these 'worthless' disclaimers is worthless."
Trump::
"It really wasn't material."
Clarifying a point from earlier: The judge rejected the materiality defense before trial as to the top count, finding the state doesn't need to prove that.
But they do need to prove materiality on the remaining counts at trial.
106/ Rubin for next few:
Having examined Trump about his lending agreements with Deutsche Bank, Wallace asks Trump about the certifications he sent to the bank each year, as required in those loan agreements.
Trump just testified that contrary to his certification, the statements of financial condition were not accurate in all material respects because they did not include his brand value.
107/ âAre you testifying these are not accurate?â Wallace asks.
đđŒTrump somewhat walks it back, testifying they were accurate but for the exclusion of his brand value, the error in the valuation of his apartment, and the overvaluation of Seven Springs, which he says he requested be lowered.
108/ đKlasfeld:
Trump just tore into the AG and the judge. He called Wallace a "disgrace."
Engoron says he's going to date himself with the analogy, but Trump's sounding like a "broken record."
109/ Rubin:
One of Trumpâs repeated themes today is that notwithstanding clear contractual language requiring the submission of his statements of financial condition and his certification that those statements were true and accurate, they were not important to the bank at all.
He has promised the bank will even testify to that effect. File that promise away for the defenseâs case in chief, which is expected to begin Thursday or early next week.
110/ đ€Šđ»ââïž
Klasfeld:
Trump defends his ex-CFO Allen Weisselberg, whom he says the DA charged "because he paid for the education of his grandchildren."
"That's some kind of breach that they're going to put a man in jail?"
Weisselberg pleaded guilty to doing that via tax evasion
111/ Rubin:
Wallace asks Trump now about the proceeds from the Old Post Office sale, which I have previously predicted could be key to the N.Y. attorney general's calculation of what profits from defendantsâ fraud must be disgorged. The email reflects that Trump himself was expected to receive $126 million with each of the adult kids expected to receive roughly $4 million.
112/ Rubin:
When asked how much profit he obtained from that transaction, Trump responded, âAbove or around that number.â He was also asked if the total proceeds were $139 million, and again, he affirmed that the total was around or above that number.
Expect these figures to show up again in closing arguments, in briefing, or both.
113/ YES! I got to cover the whole thing!
Klasfeld:
NYAG's counsel: "Your honor, we have nothing further at this time."
No cross-examination.
Trump exits the stand.
The only witness left is Ivanka Trump, who will testify on Wednesday.
(Tuesday is dark for Election Day.) END OF THREAD... unless Lisa Rubin adds something.
PlantingTreesđ·đšđŠđ»đ So helpful and thorough. Thank you.
@JaneDoeTheFirst You're so welcome!