Trump civil fraud case: 'Trump asked staff to inflate assets to boost Forbes ranking', former lawyer claims

Donald Trump inflated his assets to boost his ranking on the Forbes billionaire list, his former lawyer claimed.

A recorded deposition by Michael Cohen, who worked as Mr Trump’s backroom fixer and personal lawyer for over a decade, was played in court on Monday.

Mr Cohen said his former boss asked staff to inflate his wealth so he would rise up the Forbes billionaires list.

Prosecutors claim Mr Trump lied about the value of his assets to banks and insurers for a decade to enrich himself.

Mr Trump was present in court for the first day of the civil trial in a case brought by New York attorney general Letitia James.

He listened eagerly as defence lawyers attacked Cohen - the prosecution’s star witness - as a “serial liar”.

Mr Trump’s team said the “lynchpin” of the prosecution’s case was Cohen, whom they argued cannot be trusted.

“When you talk about credibility, you’re going to have a guy who lies to everyone who is a convicted felon,” defence lawyer Clifford Robert said.

Cohen pleaded guilty in 2018 to campaign finance violations over various charges, including tax evasion and lying to Congress about a Trump business deal.

Mr Trump’s lawyer has denied the fraud claims against his client, whom he said “made a fortune literally being right about real estate investments”.

As he left court for the day, Mr Trump bitterly complained that the trial was keeping him “off the campaign trail”.

He said: “This was for politics. It has been very successful for them - they took me off the campaign trail,.

“Because I’ve been sitting in a courthouse all day long, instead of being in Iowa, New Hampshire, South Carolina or a lot of other places I could be at.”

The 77-year-old also complained that it was “very unfair I don’t have a jury”, although the judge noted in court that neither side “asked for” one.

It is unclear whether a jury trial would have been available, since the case was brought under a statute requiring the matter to be adjudicated as a bench trial.

Follow the latest developments below.

10:51 PM BST

That's all for today

A brief recap of today’s proceedings

• Donald Trump inflated his assets to boost his ranking on the Forbes billionaire list, his former lawyer Michael Cohen claimed

• The former president complained the trial “took me off the campaign trail” and accused the judge of being a “Democrat operative” who should be “disbarred”

• Mr Trump also complained that it was “very unfair I don’t have a jury”, although the judge noted in court that neither side “asked for” one

• Prosecutors claimed Mr Trump reaped over $100 million through fraudulently inflating his assets.

• The defence claim “there was no intent to defraud, there was no illegality... there were no unjust profits, and there were no victims.”

• Asked whether he would return to court on Tuesday, Mr Trump said: “We may, I’d love not to. I’d love to be campaigning instead of doing this.”

10:43 PM BST

Trump waves as he leaves

10:41 PM BST

Meet Alina Habba: Trump’s colourful lawyer armed with a gaming laptop

Donald Trump’s lawyer, Alina Habba, has left court for the day.

Our US correspondent, David Millward, has this profile on the colourful 39-year-old who is not just Mr Trump’s attorney, but a fierce ally of the former president.

You can read about how she caused a stir at his hearing here.

10:28 PM BST

Trump: 'Very unfair I don't have a jury'

As he left court, Donald Trump made a final swipe at the woman leading his prosecution - the New York attorney general Letitia James.

She was, he told the TV cameras, a “disgrace” to both her country and her state.

Mr Trump added she “should focus on all of the violent crime and murders going on” in New York instead.

He said the final segment of today’s proceedings was “outstanding” but complained it “took me off the campaign trail”.

He added that it was “very unfair I don’t have a jury”, although the judge noted in court that “nobody asked for” a jury trial.

It’s unclear that a jury trial would have been available, since the case was brought under a statute requiring the matter to be adjudicated as a bench trial.

10:23 PM BST

Trump shares sketch of himself with Christ

Donald Trump has re-posted a mock court sketch of himself sitting alongside Jesus Christ at the defence table.

“Because nobody could make it this far alone,” the caption reads.

Mr Trump has made the courtroom his primary campaign stage, framing himself as a martyr being targeted by Democrats who have “weaponised” the legal system against him.

10:19 PM BST

New York attorney general leaves court

10:07 PM BST

Court concludes for the day

Court has concluded for the day so we’ll be ending our live blog shortly.

The first witness in civil fraud trial, Donald Bender, will continue testifying on Tuesday.

Mr Bender is a retired accountant who worked on Mr Trump’s annual statements of financial condition for years.

In his testimony, he said he relied on information provided by Mr Trump and his companies when compiling the documents.

“If I saw something that stuck out at me at a high level ... I would go back to them and ask them a question, but I did no audit or review procedures,” he told the court.

He told the court he would not have issued the statements if they weren’t represented to him as being accurate.

Mr Bender’s reports came with a warning to recipients that he had not verified the figures he compiled.

Mr Trump’s defence team has argued that served as a notice to banks that they should do their own reviews.

He is expected to continue testifying on Tuesday.

09:33 PM BST

Trump closely following proceedings

Throughout Donald Bender’s testimony, the former president has been huddling with the defence team.

From time to time, he leans over and looks through evidence and other documents while conferring.

At one point, according to a New York Times reporter in court, Mr Trump hovered close to a computer screen and leaned in while he had his hand scrunched into a fist and resting against his forehead.

He is very actively engaged in the evidence being presented, it seems.

09:21 PM BST

Which assets did Trump allegedly inflate?

According to New York attorney general Letitia James, Mr Trump and his business associates fraudulently overvalued several properties for financial gain.

It includes the former president’s own apartment in his flagship Trump Tower in Manhattan - which Ms James claims was listed as three times bigger than its true size.

Another Manhattan building, at 40 Wall Street, was overvalued between $200-$300 million in financial disclosures, Ms James alleges.

Trump’s luxury Mar-a-Lago resort in Florida - the site of the classified documents drama - and several other Trump Organization golf clubs also appear in the complaint.

09:17 PM BST

Trump expected to testify

There are likely to be dozens of witnesses called to testify in this civil trial, including Donald Trump himself.

Three of the former president’s adult children, Eric, Don Jr and Ivanka, could also take the stand.

Judge Engoron has already ruled that Mr Trump, his two eldest sons and other Trump Organization executives, lied to tax collectors, lenders and insurers for years by inflating the value of their properties by $812 million to $2.2 billion between 2014 and 2021.

He revoked business licences that allowed the Trump family business to operate some of its New York properties, a move known as the “corporate death penalty.”

Mr Trump - who gained fame and fortune as a real estate mogul in the 1980s - could lose control over many of his flagship properties, such as his 5th Avenue Trump Tower in Manhattan.

Mr Trump, 77, has denounced the claims as a politically-motivated “witch hunt” brought by an elected-Democrat prosecutor.

09:03 PM BST

This is the first in a number of trials

The New York case is the first of a number of upcoming trials for the former president.

Mr Trump is scheduled to appear before a federal judge in Washington on March 4, 2024 on charges of trying to overturn Joe Biden’s victory in the 2020 presidential election.

Mr Trump will then return to a New York state court, this time on charges of paying hush money to a porn star, and later in a federal court in Florida, where he is accused of mishandling classified documents after leaving office.

Finally, he will also have to answer to state charges in Georgia, where prosecutors say Mr Trump illegally tried to get the southern state’s 2020 election results changed in his favour.

08:51 PM BST

Trial gets into the nitty gritty after a blockbuster morning

Our US Editor, Tony Diver, shares the view from the court this afternoon:

08:01 PM BST

Case resumes after lunch

Mr Trump is back in court following the lunch break. He strolled past reporters in the hallway but did not stop to make any further comments.

The Judge has called for a brief sidebar. Mr Trump is sitting alone at the defence table, hunched over, as lawyers from both sides huddle before the bar.

The first witness to be called by prosecutors will be Donald Bender, a long time accountant for Mr Trump’s businesses who worked on Mr Trump’s annual statements of financial condition.

07:04 PM BST

Trump says he’ll ‘probably’ return after lunch

Mr Trump signed off his remarks saying: “Other than that - things went very well!!

Asked why he chose to appear in person in New York today, Mr Trump said: “Because I want to watch this witch hunt myself.”

The former president was not required to appear in court. He was joined by his son, Eric.

As he left the courtroom for the lunchbreak, Mr Trump appeared to lean over New York state’s attorney general, Letitia James, and gave her an angry glare as he walked passed.

She appeared to laugh off the incident.

By contrast, Mr Trump’s son Eric had a brief exchange with Ms James and shook her hand.

Asked if he was coming back to the courtroom after lunch, the 77-year-old Mr Trump turned and told the reporters encircling him: “probably.”

07:02 PM BST

Trump: 'my brand is my best asset'

Mr Trump said of his business valuations: “I didn’t even put in my best asset - which is the brand - in terms of value.”

He compared the Trump Organization to Coca Cola, saying: “take a look at their value... the value of their brand is worth more than everything else put together.

“My brand is extremely valuable. I didn’t even use it in my financials.”

06:43 PM BST

Trump says 'rogue judge' should be 'criminally charged'

“This is a judge that should be out of office,” Mr Trump told the TV cameras. “This is a judge that some people say could be charged criminally for what he’s doing.”

Mr Trump went on to repeat his claim that the case was a “witch hunt” aimed to “railroaded” his 2024 re-election campaign.

“This never happened before, where the President of the United States leaves office and gets indicted,” he said.

“The reason I got indicted was that I ran. If I didn’t run I’d be sitting right now on a beach like Biden does every time even though it’s supposed to be working.”

He added: “This trial could have been brought years ago, but they waited ‘till I was right in the middle of my campaign.”

06:31 PM BST

Trump: 'The crime is against me'

Donald Trump has made a surprise appearance before reporters in the New York courthouse during the break for lunch.

He called Judge Arthur Engorona a “Democrat operative” and a “disgrace”.

He told a gaggle of reporters: “We’re going to be here for months with a judge that already made up his mind. It’s ridiculous”

“They waste their time with this, with banks that were very happy that got all their money back. They weren’t defrauded. I’ve been defrauded”.

He added of his valuations: “Everything was perfect. There was no crime. The crime is against me.”

05:51 PM BST

Trump lawyer: Real estate values are 'malleable'

Mr Trump’s lawyer, Alina Habba, argued that the value of real estate in “malleable” as she insisted the former president had not committed fraud.

She added: “There is no American in this country who has ever had their property value taken at face value.”

05:20 PM BST

Pictures: Trump appears in court for civil fraud case

04:58 PM BST

Trump wanted to inflate wealth to $8bn, says his ex-lawyer

Eric Trump is in the court room sat in the gallery, while Trump is at the front of the court with his lawyers, Tony Diver writes.

The former president has not said anything publicly but is leaning over to speak to his counsel often. At one point he shook his head as the plaintiff opening statement said he had exaggerated his wealth for many years.

At one stage Michael Cohen, Mr Trump’s former lawyer, appeared in a recorded deposition video and said that he would ask his staff to try and inflate the size of his assets so that he would rise up the Forbes billionaires list.

He said the number Mr Trump always wanted to reach was $8bn. Mr Trump’s lawyer Christopher Kise called Mr Cohen a “serial liar” in response.

04:32 PM BST

'This case has no victims', says Trump lawyer

Donald Trump’s lawyer Christopher Kise has begun his opening remarks, saying that the former president has “made a fortune being right about real estate investments”.

He said: “There was no intent to defraud, there was no illegality, there was no default, there was no breach, there was no reliance from the banks, there were no unjust profits, and there were no victims.”

04:24 PM BST

Democrats 'want to bring down Trump Tower'

Donald Trump has accused political opponents of attempting to destroy his business empire and topple Trump Tower in a fundraising email, David Millward writes.

The former president said: “The Democrats have ripped my civil rights straight from my hands.

“And now, they’re trying to DISSOLVE the Trump Organisation, bring down the world-famous Trump Tower, and impose the “corporate death penalty” upon me. Our Founding Fathers would be rolling in their graves if they could see what’s become of our once Free Republic.

“It’s the first working day of the month in the final quarter of the year, and Democrats have forced me to stand trial in a frivolous lawsuit rather than be on the campaign trail… This is Election Interference never before seen in our country.

“But mark my words: this latest witch hunt will FAIL just like every single one before it.”

04:04 PM BST

Trump: This is the greatest witch hunt of all time

03:52 PM BST

Trump finances were 'materially inaccurate', court hears

Donald Trump sent “materially inaccurate” financial statements to banks and insurers for over a decade, the court has heard.

The former president is accused of inflating the size of his real estate empire to secure better loan and insurance terms, illegally generating more than $100 million of financial benefits.

Mr Trump denies the charges, and has accused Judge Arthur Engoron of deliberating undervaluing his properties to damage his re-election chances.

03:44 PM BST

'Trial will show full extent of Trump's fraud', says James

Letitia James has released a statement accusing Donald Trump of committing “incredible fraud” to “enrich himself and cheat the system”, David Millward writes.

The New York attorney general said in a statement: “For years, Donald Trump falsely inflated his net worth to enrich himself and cheat the system.

“We won the foundation of our case last week and proved that his purported net worth has long been rooted in incredible fraud.

“In this country, there are consequences for this type of persistent fraud, and we look forward to demonstrating the full extent of his fraud and illegality during trial.

“No matter how rich or powerful you are, there are not two sets of laws for people in this country. The rule of law must apply equally to everyone, and it is my responsibility to make sure that it does.”

03:38 PM BST

Pictured: Protesters demonstrate outside Trump fraud trial

03:27 PM BST

Trump: Don't believe anything you read

Donald Trump has said his financial statements include a “buyer beware clause” that warns people “don’t believe anything you read”.

He said outside a New York courthouse: “We have a clause in the contract, it’s like a buyer beware clause, it says when you take a look at the financial statement don’t believe anything you read. This is up front.

“Some people call it a worthless clause because it makes the statement and anything you read of the statement worthless. It says go out and do your own research, go out out and do your own due diligence.

“In fact it’s strong that people read it and they don’t even accept it, they don’t even want it, they don’t even use it. It’s called a disclaimer clause.”

03:19 PM BST

'I got indicted because I ran for office', says Trump

Continuing his speech on the courthouse steps, Donald Trump says the case against him was “fast-tracked” to damage his presidential campaign.

He said: “It’s an attempt to hurt me in an election. It’s never happened before where the president of the United States leaves office and gets indicted.

“And the reason I got indicted is I ran, if I didn’t run I’d be sitting right now on a beach like Biden does every time even those he’s supposed to be working.

“So very simply put it’s a witch hunt, it’s a disgrace... this trial was railroaded and fast tracked. This trial could have been brought years ago but they waited until I was right in the middle of my campaign.”

03:09 PM BST

Trump: This is election interference

Donald Trump has accused the justice department (DOJ) of “election interference” and claimed today’s fraud case is an attempt to damage his chances against Joe Biden.

He said: “They’ve totally coordinated this in Washington because I’m leading, I’m the leading candidate and I’m leading Biden by ten points. And I’m leading the republicans by 50 and 60 points.

“This has to do with election interference plain and simple. They’re trying to damage me so that I don’t do well as I’m doing in the election.”

03:04 PM BST

Trump: My financial statements are phenomenal

Donald Trump has declared he is facing “the single greatest witch hunt of all time” before his court appearance today.

He said: “We have a rogue judge who rules that properties are worth a tiny fraction one 100th a tiny fraction of what they actually are.

“We have a racist attorney general who’s a horror show, who ran on the basis that she was going to get Trump before she even knew anything about me.

“It’s a scam, it’s a sham. Just so you know my financial statements are phenomenal.”

03:00 PM BST

Pictures: Donald Trump's motorcade and son Eric arrive at court

02:54 PM BST

Trump to 'follow in the footsteps of The Godfather'

Mr Trump will appear in courtroom 300 of the New York State Supreme Court, located near the Brooklyn Bridge in Lower Manhattan, Tony Diver writes.

The walls of the room are adorned with murals depicting the city’s first law courts, established by 17th century Dutch settlers in what was then known as New Amsterdam. Above the judge’s bench are the words: “In God We Trust”.

At 9am local time, lawyers and the court artists were given access to the room, which looks out over Thomas Paine park through the building’s impressive Corinthian columns, completed in 1927.

If he enters the building from its front door, Mr Trump will climb the famous courthouse steps that have featured in The Godfather, Goodfellas and 12 Angry Men.

02:45 PM BST

'Justice will prevail', vows Letitia James

The New York attorney general who brought the fraud case against Donald Trump has said “justice will prevail” as she pledged to prove further claims against the former president.

Letitia James said outside the courthouse: “Donald Trump and the other defendants have committed persistent and repeated fraud. Last week we proved that... today we will prove our other claims.

“My message is simple no matter: how powerful you are, no matter how much money you may think you may have, no one is above the law.”

“The law is both powerful and fragile and today in court we will prove our case... Justice will prevail.”

02:29 PM BST

What other cases is Donald Trump fighting?

Donald Trump has been found by a New York judge to have committed fraud - the latest in an intimidating list of legal issues to beset the former president.

The former president “repeatedly” over-inflated his wealth by as much as $3.6 billion (£3 billion), Judge Arthur Engoron said on Tuesday as he ordered some of Mr Trump’s business licences in the state to be rescinded.

Since leaving office, Mr Trump has been embroiled in a number of cases, both criminal and civil. Several of them will reach the courts next year as he campaigns to return to the White House in 2024.

Read the full story here.

02:07 PM BST

The view from outside the courthouse

It is a cool sunny day in Lower Manhattan and the street outside the courthouse where Donald Trump will face fraud charges today is packed with news crews, protesters and police officers ahead of today’s trial, Tony Diver writes.

Reporters began queuing before 4am, and much of the street surrounding the New York County Supreme Court has been shut off to the public.

Outside, anti-Trump protesters holding placards calling for justice mixed with apparent conspiracy theorists.

Proceedings are set to start at 10am local time.

01:47 PM BST

Donald Trump to appear in court at start of New York fraud trial

Donald Trump is set to appear in court on Monday to face accusations he fraudulently exaggerated the value of his properties, including Trump Tower and his Mar-a-Lago resort, Tony Diver writes.

The former president is reportedly planning to attend the first day of the civil trial in Manhattan, where a judge found he constructed a “fantasy world” of valuations that “can only be considered fraud”.

The ruling may mean that Mr Trump is required to pay millions of dollars in damages to the state of New York and sell off iconic properties including Trump Tower.

Read the full story here.

01:44 PM BST

Trump accuses judge of fraud before court appearance

Donald Trump has hit back at the New York judge who found him liable for fraud, accusing him of being a “Democrat operative” in a series of attacks.

The former president claimed Arthur F. Engoron had understated the value of his Mar-a-Lago Florida estate - one of a series of properties he is said to have inflated in value - and was attempting to interfere in the upcoming election.

He wrote on his Truth Social platform: “Judge Engoron’s Valuation of Mar-a-Lago, the most spectacular property in Palm Beach, Florida, IS FRAUDULENT!

“He should resign from the “Bench” and be sanctioned by the Courts for his abuse of power, and his intentional and criminal interference with the Presidential Election of 2024.

“Likewise, Letitia James should resign for purposeful and criminal Election Interference... Both of these Democrat Operatives are a disgrace to New York, and to the United States of America!”

01:36 PM BST

When is Donald Trump due in court?

The trial is due to begin at 3pm BST (10am ET) today, and will finish at 9:30pm BST (4:30pm ET).

Several witnesses will be called by the judge, including Mr Trump and several of his children, but it is unclear what time they will make an appearance.

01:30 PM BST

Welcome to the live blog

Good afternoon and welcome to today’s live blog.

We’ll be guiding you through all the latest updates as Donald Trump stands trial in New York after being found liable for fraud.

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