New York Supreme Court Justice Arthur Engoron, who is presiding over a case that will determine the fate of former President Donald Trump’s businesses and properties, has issued a new order that requires President Trump and co-defendants to notify the court’s independent monitor before transferring any assets or creating a new entity, including applying for a new business certificate outside of New York.
New York Attorney General Letitia James sued President Trump last year, claiming he inflated his net worth to receive more favorable terms from insurers and banks, and is seeking $250 million in penalties and to bar the 45th president and his sons Eric Trump and Donald Trump Jr. from doing business in the state.
On Sept. 26, Justice Engoron issued a pretrial summary judgment, ruling President Trump liable for fraud. The trial began on Oct. 2, as prosecutors still need to prove their case on six claims, after which the judge will rule on the penalties owed.
As part of the summary judgment, Justice Engoron canceled all business certificates held by President Trump and his adult sons as well as those held by former Trump Organization executives Allen Weisselberg and Jeffrey McConney, who’s expected to testify in the case soon. He also ordered both parties to submit names of independent receivers, who would function like executors, to handle the dissolution of the various LLCs under the Trump Organization, which is an umbrella brand.
The Oct. 5 filing gives the defendants seven days to provide the independent monitor, former Judge Barbara Jones, with a list of all entities that they control and own, as well as other information regarding the entities.
They now have until Oct. 26 to provide the list of independent receivers, an extension from the judge’s initial order of 10 days after Sept. 26.
Complications arose when the judge initially made that order, as Trump attorneys asked whether it meant that buildings such as Trump Tower would be sold off or managed by a third party and what this would mean for properties such as the residential homes of Eric Trump and Donald Trump Jr., which are also held by LLCs under the Trump Organization.
After conferring with his clerk, Justice Engoron said that he wasn’t ready to issue an order on that at the moment but that they would hash out details later as the trial was underway.
Accountant’s Testimony
Mr. Bender, former Mazars USA partner, was an accountant who prepared President Trump’s personal tax returns from 2009 to 2018. From 2011 to 2012, he worked closely with the Trump Organization, spending about half his time on the client, and prepared the financial statements on which the prosecutors are suing President Trump.On Oct. 2, he was questioned by the prosecution, which sought to establish that the Trump Organization was responsible for the numbers in the statements, not Mazars. Mr. Bender said he would copy and paste in figures provided by Trump Organization officials, and he testified to documents that stated the Trump Organization’s responsibility in accurate accounting.
The prosecution went over each year, document by document, and the questioning continued into Oct. 3. On Oct. 4, the defense had the first chance to cross-examine Mr. Bender and sought to counter the prosecution’s case year by year in the same fashion. However, the judge demanded that they speed up, arguing with the defense and pounding his fist on the desk, even questioning the witness himself.
Mr. Bender’s testimony was paused to allow the prosecution to call their second witness on Oct. 4. Camron Harris, audit partner at Whitley Penn, picked up where Mr. Bender left off, as Whitley Penn now prepares the Trump Organization’s financial statements. He testified much the same, that the Trump Organization assumed responsibility for the accuracy of the figures, which is stated in documents sent from the group’s CFO, Mr. Weisselberg, who’s named as a defendant.
On Oct. 5, Mr. Bender returned to the witness stand for cross-examination by the defense.
President Trump had surprised observers when he attended his own trial on Oct. 2, speaking to reporters at length, and again on Oct. 3. On Oct. 4, he left early and hasn’t returned to court. During his remarks to the press, he said more than once that he would rather be campaigning.
