Letitia James condemns ‘the Donald Trump show’ as former president leaves fraud trial
Donald Trump’s claims about his net worth were a crucial factor in securing loans from Deutsche Bank, the court has heard in his $250m civil trial for fraud that could wipe out his business in New York.
Former risk management specialist at the bank, Nicholas Haigh, said in testimony on Wednesday morning that given the niche market for some assets used as collateral — such as golf courses — the backing of a “financially strong person” was vital.
Mr Haigh said he believed the financial statements proed to the bank “were broadly accurate”. The New York attorney general’s office maintains they were based on false data.
Meanwhile, a mystery member of Mr Trump’s family has been accused of withholding information in the federal criminal case charging the former president over his efforts to overturn the 2020 presidential election.
In court documents on Tuesday, Special Counsel Jack Smith’s office said that at least 25 witnesses had “withheld information, communications, and documents” claiming attorney-client privilege.
“These included co-conspirators, former campaign employees, the campaign itself, outside attorneys, a non-attorney intermediary, and even a family member of the defendant,” the filing states.
It is unclear which family member prosecutors are referring to.
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1697057109Trump on trial: Former banker faces cross-examination in fraud trial
Former Deutsche Bank risk manager Nicholas Haigh faced cross-examination in court in Lower Manhattan on Wednesday afternoon.
Trump attorney Jesus Suarez asked about the earlier mentioned $150m 2011 loan to Donald Trump concerning his Doral golf club in Florida and notes there were four points given as the basis for the recommendation to approve lending the money.
Financial strength of the guarantor$2.5bn net worth. Good liquidity. $48 million in cash flowThe nature of the personal guaranteeTrump’s operating experienceThe expected enhanced value of the Doral golf course
It is also noted that two bank loan officers visited the Trump Organization offices to review bank statements as part of the process.
In another part of the document they are reviewing, Mr Trump lists the total value of this real estate portfolio as $3.29bn. Deutsche Bank knocks this down to $2.04bn with $302m in debt.
Haigh confirms that the bank’s valuation services people did their own valuations of the so-called trophy properties: Trump Tower, 40 Wall Street, Niketown on 57th Street, and Trump Park Avenue, all in Manhattan. Other assets he adds would be harder to value, namely the golf courses, which were given ballpark values.
Court wraps for the day with further cross-examination of Haigh to continue tomorrow before former Trump CFO Allen Weisselberg returns to continue his direct examination.
Oliver O’Connell11 October 2023 21:45
1697056541Voices: Who the hell wants to be a GOP speaker anyway?
Eric Garcia writes from Capitol Hill:
…beyond the current fight, there is one question nobody is asking: Why in God’s name would any rational Republican member of Congress take the job? Any study of the most recent Republican speakers shows the job requires making promises that are impossible to keep and inevitably infuriating enough of the conference that you leave in disgrace.
Oliver O’Connell11 October 2023 21:35
1697055349Fulton County: Defence argues RICO charges don’t allege ‘continuity’
Former Trump attorneys Kenneth Chesebro and Sidney Powell had a second motion to dismiss the case discussed in court today in Fulton County, centring on that the RICO charges in the indictment do not sufficiently allege “continuity” of the crimes that form the basis of the charges.
Anna Bower of Lawfare explains: “In *federal* RICO cases, continuity can generally be met by showing (1) that the predicate crimes took place over a substantial period of time, or (2) that the nature of the acts threatened future repetition of criminal activity.
“Here, the prosecution and the defence disagree over whether continuity is a required element under the provision of *Georgia’s* RICO statute with which Powell and Chesebro have been charged.”
The prosecution argues that a Georgia case (Dover v State) stands as an example that there is no such continuity requirement in Georgia law and has been cited “over and over: again.
Judge Scott McAfee will present a ruling on the topic at a later date. Wrapping up the day there is a claim by Chesebro’s counsel that he is being “punished” for requesting a speedy trial by the speeding up of the jury selection process and that the state has added to the potential witness list (now up to 180 names).
The judge responds that the procedure he intends to use for jury selection “works quite well” in federal courts. He has a number of rulings to make in the remainder of this week and there may be further hearings in court next week before jury selection begins the week after.
That’s all for today from Fulton County.
Oliver O’Connell11 October 2023 21:15
1697054131DeSantis denounces antisemitism but evasive on GOP links to Nick Fuentes
The Florida governor said that he was “proud” of steps taken in his state to combat antisemitism, including increased education and security for Jewish schools, but did not immediately respond when questioned directly about Mr Fuentes.
The far-right commenter has previously expressed a love of Adolf Hitler, and has backed Kanye West’s antisemitic rants, as well as saying his dream wife would be a 16-year-old girl.
Mike Bedigan has the full story.
Oliver O’Connell11 October 2023 20:55
1697052931Trump on trial: New York court hears details of DC hotel loan
Following lunch, former Deutsche Bank risk manager Nicholas Haigh is back on the witness stand and explains another loan document concerning the development of what would become the Trump International Hotel Washington, DC in the Old Post Office building on Pennsylvania Avenue.
The $170m financing required not just real estate collateral, but also a personal guarantee from Donald Trump himself.
Under the terms of the deal, the now-former president was also bound by a series of covenants
He had to maintain $50m in cash to be available at all timesHe couldn’t take out any further loans over $500m (even with Deutsche Bank)He had to maintain a net worth of $2.5bn.
New York Attorney General Letitia James states in their case against Mr Trump that between 2011 and 2021 he overstated his net worth by between $1.9bn and $3.6bn. Her office argues that his actual net worth at the time was between $812m and $2.2bn.
When he applied for the loan for the DC hotel, Ms James believed his actual net worth was $1.4bn, meaning he was in breach of the covenants from day one…
The Trump legal team disputes this and says his true worth was much higher than this, as reflected in the statements prepared by the Trump Organization.
For example, in 2017 when the hotel had been completed, Mr Trump told Deutsche Bank his net worth was $5.7bn.
Oliver O’Connell11 October 2023 20:35
1697051676No speaker vote in House today, report says
The House will not vote on electing a new speaker today despite Steve Scalise being chosen by Republicans behind closed doors to become their nominee.
Lawmakers were expected to meet on the floor on Wednesday afternoon before recessing, reported CNN.
Oliver O’Connell11 October 2023 20:14
1697050531Chesebro and Powell lawyers argue against use of RICO stature
The defence counsel argues that Georgia’s RICO statute only applies to crimes motivated by pecuniary gain or physical threat and/or harm.
According to lawyers representing Chesebro and Powell, the indictment should be dismissed because the alleged crimes were not motivated in that way.
Special prosecutor John Floyd, a leading RICO expert in Georgia, responds that a legislative amendment by the Georgia General Assembly in the 1990s was enacted specifically to counteract the idea that RICO crimes must be motivated by economic gain.
Judge McAfee asks Floyd about the defence claim that “millions” of people could be prosecuted under the RICO statute if it were not limited by the aforementioned motives.
He responds that it is a “sky-is-falling” type of argument and that other parts of the statute, such as intent, limit its scope. Further, he adds that there are examples of RICO being used in cases that are not for economic gain.
Having said that, Floyd adds that were Donald Trump to become president as a result of the alleged actions of the defendant, that is pecuniary gain, AND in addition to that, there were physical threats made to election worker Ruby Freeman, who was confronted by those involved in the conspiracy who said her life was in danger.
“She was scared to death. Absolutely scared to death,” Floyd says.
The defence counsels for Chesebro and Powell contend the 1990s amendment states that the motivation has to be either pecuniary gain OR physical injury and that the Georgia Supreme Court should decide.
Oliver O’Connell11 October 2023 19:55
1697049931George Santos vows to run for re-election despite moves to oust him
He indicated to reporters on Wednesday that the new charges wouldn’t get in the way of his re-election campaign.
“I’m going to continue to fight this as much as I said in the past. Nothing has changed,” Mr Santos said, CNN reported. “I think I’ve made it clear that I will fight this to prove my innocence. So yeah, I’m pretty much denying every last bit of charges.”
Oliver O’Connell11 October 2023 19:45
1697049399Meanwhile, back at Fulton County Courthouse…
As the New York civil fraud trial continues in Lower Manhattan, the sprawling criminal case against Donald Trump and his 18 co-defendants is in pre-trial hearings ahead of the first trial of former Trump lawyers Kenneth Chesebro and Sidney Powell.
Today, Judge Scott McAfee is heating a series of motions regarding Georgia’s Racketeer Influenced and Corrupt Organizations (RICO) statute. You can watch live here:
Oliver O’Connell11 October 2023 19:36
1697048131Scalise beats Trump-backed Jordan for Republican speaker nomination
The vote was 113-99 in a closed-door meeting on Wednesday morning. A loud cheer was heard by reporters as the result was announced.
Mr Scalise will now need to muster 217 votes on the floor of the House to become speaker and second in line to the presidency. A full chamber vote is scheduled for 3pm ET this afternoon.
This will require the backing of almost all of the GOP conference — just five members could block him from winning the gavel.
The triumph of Mr Scalise is especially notable given that he defeated Donald Trump’s endorsed candidate for the role.
Oliver O’Connell11 October 2023 19:15
