Trump's Business Empire Awaits Its Fate As New York Trial Opens While He Dubs It As 'Scam'

Donald Trump and his company have been blamed of deceiving banks, insurers, and others by habitually misstating his wealth in financial statements.

Former U.S. President Donald Trump speaks to the media after exiting the courtroom for a lunch recess during the first day of his civil fraud trial at New York State Supreme Court on October 02, 2023

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A civil fraud trial against former US President Donald Trump opened on Monday while he denounced it as a "scam". The case brought by New York Attorney General Letitia James accuses Trump and his company of deceiving banks, insurers, and others by habitually misstating his wealth in financial statements. The case could cost Trump control over some of his prized properties including Trump Towers and some other major real estate holdings. James has accused Trump of inflating his assets and his own net worth from 2011 to 2021 to obtain favourable bank loans and lower insurance premiums.

“They were lying year after year after year,” Kevin Wallace, a lawyer in James’ office, said as the hearing began at New York State Supreme Court. Trump, who was present during the trial looked straight ahead, arms crossed, facing away from a screen that showed details of Wallace’s presentation, as per an Associated Press report. 

Defence lawyer Christopher Kise, in his opening, said that the financial statements were true, and he suggested the proof was in the outcome of Trump’s business career.

“He has made a fortune, literally, being right about real estate investments,” Kise said

Meanwhile, Trump said “it’s a scam, it's a sham” and called the case “an attempt to hurt me in an election”, adding “I don’t think the people of this country are going to stand for it.”

“This is a continuation of the single greatest witch hunt of all time,” said the Republican leader as he approached the courtroom, reiterating claims that James, a Democrat, is trying to thwart his return to the White House.

James is seeking a fine of at least $250 million, a permanent ban against Trump and his sons Donald Jr and Eric from running businesses in New York and a five-year commercial real estate ban against Trump and the Trump Organization.