Trump NY Fraud Trial on for Next Week After Delay Bid Denied

Erik Larson and Patricia Hurtado
·2 min read
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(Bloomberg) -- Former President Donald Trump will go on trial next week as scheduled for inflating the value of his assets by billions of dollars, after an appeals court denied his request for a delay.

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A Manhattan appeals court on Thursday rejected Trump’s argument that the Oct. 2 trial should be postponed because some of the conduct alleged in New York Attorney General Letitia James’s lawsuit fell outside the statute of limitations. The court didn’t give a reason for its decision.

New York state Justice Arthur Engoron already ruled on James’s biggest claim, finding on Tuesday that Trump was liable for fraud for greatly exaggerating the value of properties ranging from Mar-a-Lago to Trump Tower in financial statements given to banks. He authorized her to cancel certificates for various companies that hold his assets, and his lawyers are already grappling with whether that means all of the entities that make up the Trump Organization will be dissolved.

The trial will still go ahead on the attorney general’s six remaining claims, including insurance fraud and falsification of business records, as well as her request for $250 million in penalties.

Read More: Trump’s Business Empire at Risk of Dissolution After Ruling

The former president, who is seeking to return to the White House, is facing four criminal cases, but James’s lawsuit hits at the core of Trump’s image as a successful businessman, which was the basis for his rise in politics.

Trump denies wrongdoing, claiming James filed the suit for political purposes. He also claims that his luxury properties at the center of the case were properly given higher values on his financial statements because his personal “brand” makes them worth more.

Trump isn’t accused of failing to repay any loans. The former president has long argued that the case is bogus because no banks lost money as a result of the alleged conduct.

Trump and his three oldest children, two of whom are also defendants, are all expected to testify, as are several current and former executives at Deutsche Bank AG, which was one of the former president’s biggest lenders.

Read More: Deutsche Bank Executives, Trump Set to Testify in NY Civil Trial

Seeking delay is a frequent tactic for Trump. In Washington, where he’s charged with conspiring to overturn the 2020 presidential election, his lawyers this week asked to push back motions deadlines because they needed more time to address the “complex and novel legal questions.”

In both that case and one in Florida, where he’s charged with mishandling classified documents, Trump unsuccessfully argued for the trials to be held after the 2024 election.

The case is New York v. Trump, 452564/2022, New York State Supreme Court (Manhattan).

--With assistance from Zoe Tillman.

(Updates with Trump defense in seventh paragraph.)

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