by Matthew Russell Lee, Patreon Book Substack
NYS COURTHOUSE, Sept 22 – In the run up the Trump trial in the NYS AG James cases about overvaluation, Inner City Press went and live tweeted Judge Engoran's September 22 pre-trial conference on, among other things, materiality and (possible) sanctions. Thread:
OK - now at Trump Org hearing before NYS Judge Engoran. Courtroom gallery full, court artist in jury box, "SOFC Valuation Impact, Donald J. Trump" sliding on 2 screens.
All rise! Judge Engoran: Let's not get wrapped up in materiality.
Trump Org lawyer: Consider the Domino's Pizza case...
Judge Engoran: Domino's Pizza is not binding on me.
Trump Org lawyer: These sophisticated banks were not fooled. The SOFC disclaimers were unequivocal. And so under GAAP, it's not material. Trump Org lawyer: We have an NYU Stern professor...
Judge Engoran: Let's consider Mazers, Maysers, whatever you call it. Are you saying, they just had to rely on Trump?
Trump Org lawyer: They put Deutsche Bank on notice. And a bank like that does due diligence Judge Engoran: We all know that. Give me a minute. [Law clerk whispers to him, then blocks view with legal pad, like a pitching coach during a mound visit. #LipReaders
Trump Org lawyer: Here are valuations of these trophy properties. Forget Domino's Pizza, I know you don't like it - how about Temper-Pedic? It's like people saying the Jets or Bills are the best team, it's just opinion-
Judge Engoran: Why not the Miami Dolphins? Trump Org lawyer: President Trump bought Mar-a-Lago for $8 million, now it's worth billions. Judge Engoran (banging on his table) You. Cannot. Make. False. Statements. In. Business! That's what the statute is about! [Looks out at courtroom gallery]
Trump Org lawyer: They did not make false statements, Donald Trump, Don Junior, Eric Trump. Judge's law clerk (?) Weren't the Revocable Trust documents certified to? Trump Org Lawyer 2: Neither Eric nor Don Jr.
NYS AG's lawyer: I'm sure Your Honor is going to be generous with us... These documents were used to get loans... Consider the Wabash loan in Chicago..
AG lawyer: Mar-a-Lago is not being used as a private residence. It is being used as a social club, with an onerous restriction on its deed. The undervaluing of Doral doesn't make up for it.
NYS AG lawyer: Trump inflated the income from 40 Wall Street, and here's a quote from a Deutsche Banker... Donald Trump Jr was a trustee...Their values are inflated. Thank you.
Judge Engoran is back after break, says this csn go until 4:45... NYS AG lawyer: We are compelled to seek sanctions. Trump Org lawyer 2: We have been appropriate under the CPLR... They are trying to sanction us for something the First Department ultimately reversed on. We have a respected retired judge's affirmation...
Trump Org lawyer 2: If you have any questions... Judge Engoran: I have more comments than questions. You can't put in an expert affidavit about the law. I'm the expert. I thought these arguments were a joke. Of course the AG can sue under this statute Trump Org lawyer: These were private transactions, we don't believe there's been any public harm.
Judge Engoran: I said, these arguments were frivolous the first time. Now you have retired judge Leonard Austin telling me something has changed. Say hello for me... Trump Org lawyer 1: I know you dont like Domino's--
Judge Engoran: The pizza's OK, the case, not so much. Trump Org lawyer 1: As we go into trial, this sanctions business is not the best way to go in. Let's keep the temperature down
Judge Engoran: This is about fairness in the marketplace, we in New York want to keep thing fair. Maybe someone will be hurt next time.
Inner City Press remains on the case.
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