Trump backs off Netanyahu criticism amid furore over remarks - live
Donald Trump plans to appear at his New York civil fraud trial in person for a showdown with former fixer turned sworn enemy Michael Cohen.
A source told The Associated Press that the former president will be back in court on Tuesday when Cohen is expected to testify.
Cohen, who was jailed for lying to Congress, welcomed the reunion: “It’s been 5 years since we have seen one another. I look forward to the reunion. I hope Donald does as well.”
This week, the New York court at Mr Trump’s $250m civil fraud trial heard how Mr Trump’s claims about his net worth became a crucial factor in securing loans from Deutsche Bank.
New York Attorney General Letitia James is reportedly looking at an accusation by Forbes that former Trump Organization CFO Allen Weisselberg may have lied under oath in court this week. His testimony on Thursday was abruptly curtailed.
Meanwhile, Mr Trump and his campaign are in clean-up mode as a result of the backlash from his comments about the attack on Israel earned him a stern rebuke from the White House and an Israeli minister. He appears to be walking back criticism of Benjamin Netanyahu and has praised the Israeli Defence Force.
Key Points
Trump backpedals Netanyahu criticism after angry reaction to Israel remarks
Trump prepares for showdown with Michael Cohen in New York court
After testimony abruptly ends, NY AG looking at Forbes claims about Weisselberg, report says
Day eight recap — New York Trump trial hears how property valuations formed basis of fraud
Trump slammed by White House and DeSantis for calling Hezbollah ‘very smart’
Trump tells court he had no duty to ‘support’ the US Constitution
RFK Jr, Fox News’ useful idiot
22:30 , Oliver O'Connell
Reporting for The Independent, Bevan Hurley writes:
In Robert F Kennedy Jr’s warped reality, the forces of evil are never far from the door.
Yet even he seemed blindsided by how quickly Fox News turned on him after he announced he would run as an independent candidate for the 2024 presidency.
“Who is the liberal now and who is the conservative? Who is the left and who is the right?” asked Kennedy outside Philadelphia’s Independence Hall on Monday to a crowd of 1,0000 supporters.
Suddenly it was Fox News asking him just that.
Barely 24 hours after Kennedy had declared his independence from the party of his revered uncle and father, Sean Hannity turned the screws in a primetime ambush.
Continued...
RFK Jr, Fox News’ useful idiot
Trump wants credit for Isis defeat, claiming he will ‘do it again in 2024’ with Hamas
21:58 , Oliver O'Connell
After appearing to back off from his attacks on Israeli Prime Minister Benjamin Netanyahu, Donald Trump has found another way to insert himself into the conflict in Israel — by claiming he will defeat Hamas as he did Isis if re-elected in 2024.
The former president posted on Truth Social:
Many are using an example of “just the way ISIS was defeated in Iraq and Syria, HAMAS will likewise be defeated.” Please remember that it was the Trump Administration that defeated ISIS, and quickly, after years of futile attempts by previous administrations! Someday we will be given proper credit for all of the many successes we had. In the meantime, we will do it again in 2024! MAKE AMERICA GREAT AGAIN
A follow-up post seemed to imply he would help out now... if only he hadn’t been indicted four times by “politically hungry prosecutors”.
Can anyone imagine that with all of the self inflicted and imposed problems that the United States is experiencing, both at home and abroad, that I am being forced to fight off politically hungry Prosecutors, Radical Left Democrats all, on the greatest political Witch Hunt of all time - All started by Crooked Joe Biden as an unprecedented attack against his Political Opponent, ME, for purposes of Election Interference, and more. What a Shame, what a Shame!!!
Trump backpedals Netanyahu criticism amid furore over Israel remarks
21:38 , Oliver O'Connell
Donald Trump appears to be backpedalling his criticism of Benjamin Netanyahu following the attack on Israel after an angry reaction to his remarks at an event in Florida on Wednesday.
Just days after the sudden escalation of the conflict between Hamas and Israel resulted in thousands of deaths and injuries, the former president accused the Israeli Prime Minister of being unprepared and recalled he had allegedly failed to stand with the US during the latter part of his presidency.
He also called Lebanon-based militant group Hezbollah “very smart”, further infuriating the White House, Israeli officials and his rivals for the Republican Party presidential nomination.
The pointed criticism of Mr Netanyahu and other his remarks drowned out Mr Trump’s pledge of unwavering support for Israel earlier in the speech.
His 2024 campaign appeared to go into damage control on Thursday and Friday...
Trump backpedals Netanyahu criticism after angry reaction to Israel remarks
BREAKING: Trump-backed Jim Jordan secures GOP nomination for speaker amid party chaos
21:18 , Oliver O'Connell
Rep Jim Jordan (R-OH) has secured a majority of the GOP votes for speaker to grasp the nomination but he was unable to reach the 217 votes he needs from his caucus to win a vote of the full House.
Mr Jordan beat challenger Rep Austin Scott (R-GA) by 124 votes to 81 on Friday afternoon. Mr Scott is reported to not actually want to be speaker and observers say the vote for him indicates the significant part of the party which would be uncomfortable with him as speaker.
This comes after Majority Leader Steve Scalise (R-LA) gave up his attempt to become speaker after he beat Mr Jordan in the first internal ballot on nominating a candidate for speaker earlier this week by a vote of 113 to 99.
Mr Jordan is a staunch ally of former President Donald Trump and has a reputation in Congress as a rightwing hardliner and brawler. He may yet end up failing to get the votes he needs for a floor vote as the GOP divisions appear far from softening.
Read the full report by Gustaf Kilander and Eric Garcia on Capitol Hill.
Trump-backed Jim Jordan secures GOP nomination for speaker amid party chaos
21:04 , Oliver O'Connell
George Santos shouts ’human scum’ at protester in altercation over Israel conflict
Trump hotel hosting Holocaust denier amid uproar over ex-president’s Israel reaction
20:50 , Mike Bedigan
A Trump-owned hotel in Florida is set to host an evangelical Christian event featuring a Holocaust denier, amid outrage over the former president’s reaction to the conflict in Israel.
The ReAwaken America event will take place at the Trump Miami Doral on Friday and Saturday and feature speakers including fitness guru Ian Smith – who has previously made antisemitic and Holocaust denial comments online.
Mr Smith was listed among the speakers on Friday, announced during a short video. The line-up of the event over the two days also includes General Mike Flynn, Eric Trump, Lara Trump, and MyPillow CEO Mike Lindell.
Mr Smith has written multiple posts on X in which he has taken a critical stance against Israel since the outbreak of the conflict on Saturday.
Read more...
Trump hotel hosting Holocaust denier amid uproar over ex-president’s Israel reaction
Voices: The speaker fracas has real-life consequences
20:30 , Oliver O'Connell
Eric Garcia, reporting for The Independent on Capitol Hill, writes:
The House Republican conference experienced just its latest faceplant on Thursday evening when House Majority Leader Steve Scalise withdrew his nomination for speaker of the House.
The announcement was not entirely surprising. The House GOP conference is still incredibly split following the ouster of Kevin McCarthy. Plenty of conservatives who supported Rep Jim Jordan (R-OH) and others had objections that they just otherwise couldn’t articulate, a sign of how much just simply opposing anything leadership supports has become a feature of being a rank-and-file House Republican.
At this point, no Republican has a clear path to reaching the required 217 votes to get the gavel in the House. Ever since January, media reports have popped up about a handful of swing-district Republicans teaming up with Democrats to vote on a consensus speaker. But these stories are always as plausible as the idea of a contested presidential nomination at a party convention; they are catnip for political junkies but almost never come to fruition.
20:26 , Oliver O'Connell
...speaking of which, Donald Trump seems to be doing some serious backpedalling after criticising Benjamin Netanyahu on Wednesday night after the horrifying attack on Israel last weekend.
In a post on Truth Social on Friday, the former president wrote: “#IStandWithIsrael #IStandWithBibi.”
Now, it’s suddenly ‘I stand with Bibi’ pic.twitter.com/aPf5XOZms0
— Ron Filipkowski (@RonFilipkowski) October 13, 2023
Here’s what Mr Trump had to say this week at an event in West Palm Beach, Florida.
Trump criticises former ally Netanyahu as unprepared for Hamas attack on Israel
Watch: Haley asked about Trump criticism of Netanyahu
20:15 , Oliver O'Connell
2024-NEW Asked about #DonaldTrump criticism of Israeli PM @netanyahu - @NikkiHaley tells @FoxNews in NH that "he can’t leave the past alone...everything that he thinks about is how someone treated him or what they said to him or what happened in the past" #2024Election #FITN pic.twitter.com/0UM75XVI0H
— Paul Steinhauser (@steinhauserNH1) October 12, 2023
New poll: Biden beats Trump... but loses to DeSantis and Haley
20:00 , Oliver O'Connell
Brace yourselves for an angry Truth Social post emanating from Mar-a-Lago, because not only does this latest poll show President Joe Biden beating Donald Trump in a 2024 match-up — while showing his two closest rivals doing better than him against the incumbent — it also comes from Fox News, who he frequently rails about for broadcasting polls that unfavourable to him...
While we wait for the former president to log on and bash out a furious response, here’s Josh Marcus with the details:
Biden beats Trump in new poll – but loses to DeSantis and Haley
Fulton County: Judge to hear proposed prospective jury questions on Monday
19:40 , Oliver O'Connell
In Fulton County, Judge Scott McAfee has set the date for a hearing on proposed questions for the questionnaire that will be provided to prospective jurors in the State of Georgia v Kenneth Chesebro and Sidney Powell, the first trial stemming from the sprawling indictment brought by District Attorney Fani Willis against Donald Trump and his 18 co-defendants.
The hearing is set for 10am on Monday, 16 October.
Judge Scott McAfee sets hearing on proposed questions for questionnaire that will be provided to prospective jurors in State of Georgia v. Kenneth Chesebro and Sidney Powell.
Hearing set for 10 a.m. on Monday, Oct. 16. pic.twitter.com/Jk6VYnN3zo— Anna Bower (@AnnaBower) October 13, 2023
What next for the race to speaker of the House?
19:30 , Oliver O'Connell
The mess that is the Republican contest to choose a new House speaker just got worse, with no clear path in sight.
In Washington, DC, Gustaf Kilander and Eric Garcia report for The Independent on what could happen next:
When is the House speaker vote?
Eric Trump says his father sent him to work on construction sites as a child
19:00 , Oliver O'Connell
Eric Trump, the middle son of ex-President Donald Trump, told Senate hopeful Kari Lake that he had worked on construction sites as a child “making minimum wage” at the direction of his father.
“What kind of a dad was he?” the failed Arizona gubernatorial candidate asked on “The Kari Lake Show”. “I can’t imagine you guys got away with a lot. Or, was he constantly telling you guys how to behave or was it pretty hands off?”
The former president’s son said his father was “strict,” had “high expectations of us,” and “made us work very very hard.”
“I was on construction sites when I was 11, 12 years old,” the younger Mr Trump continued, adding that he recalled “breaking down walls, sheetrock, plumbing.”
Kelly Rissman has the story...
Eric Trump claims he worked on construction sites earning minimum wage at 11 or 12
Fetterman says America’s ‘best and brightest’ not in Congress
18:30 , Oliver O'Connell
Correct.
Gustaf Kilander reports on the senator’s remarks.
John Fetterman says America’s ‘best and brightest’ are not in Congress
Trump on trial: How to add half a billion dollars to your net worth
18:06 , Oliver O'Connell
It wasn’t just Forbes probing Donald Trump’s net worth. The court is shown emails from Bloomberg inquiring into various valuations.
On the witness stand, Patrick Birney was questioned about an email exchange with the real estate firm Cushman Wakefield asking about information on valuation metrics such as cap rates (see this explanation by Dan Alexander of Forbes for their importance).
An employee at the firm suggested that the cap rate for midtown Manhattan properties should be in the mid-4 per cent range. The Trump Organization instead ended up using a cap rate of 2.67 per cent in its calculations.
Apparent small changes in cap rate result in huge changes in valuation. The property in question was 1290 Avenue of the Americas which had an operating income of $110m.
According to calculations by Dan Alexander at Forbes: if a cap rate of 4.5 per cent was applied as suggested, the building would be worth $110m / 0.045 = $2.44bn.
However, if the cap rate the Trump Organization used is applied it results in this valuation: $110m / 0.0267 = $4.12bn — a difference of $1.676bn.
In reality, the company used a slightly higher operating income in the calculation resulting in a valuation of $4.192bn, then subtracted $950m of debt and attributed a 30 per cent ownership stake to Trump, resulting in a final figure of $973m.
Had they used the cap rate suggested by Cushman Wakefield, Trump’s stake would have been worth $461m, some $512m less…
It may be more complicated and less obvious than lying about the size of a penthouse, but it has much larger implications for inflating someone’s net worth.
The next year, the same low cap rate was used by the company and Birney was asked who directed him to use it.
“Allen Weisselberg,” he replied.
Court has now adjourned for the weekend. Direct examination of Birney will continue on Monday.
Watch: Pence calls Trump ‘reckless’ for Netanyahu criticism
17:45 , Oliver O'Connell
To speak in a critical way about Prime Minister Netanyahu, to refer to the terrorist organization Hezbollah as ‘very smart,’ I think was incomprehensible.
Former Vice President Mike Pence
Mike Pence calls Donald Trump “reckless” for his criticism of Israeli PM Netanyahu and for calling Hezbollah “smart”:
“To speak in a critical way about Prime Minister Netanyahu, to refer to the terrorist organization Hezbollah as ‘very smart,’ I think was incomprehensible.” pic.twitter.com/21EZBQqUhD— The Recount (@therecount) October 13, 2023
‘Presidential premiums’: Are Trump’s assets worth more because he was president?
17:41 , Oliver O'Connell
It was said in court that Trump Organization executives applied a “presidential premium” when calculating the value of Donald Trump’s assets in 2019.
It is fair to say that assets or objects acquire additional value based on who owned them or their place in history.
Dan Alexander of Forbes notes that his publication does apply a “presidential premium” when calculating the value of Trump assets but does not do so across the board — Mr Trump’s penthouse and Boeing 757 would get the premium but other homes would not [as we’ve saw earlier, the restrictions on use at Mar-a-Lago make that much more complicated].
8/ We at Forbes actually did give Trump a slight presidential premium on a couple of assets. "What's a baseball worth? About $3," said the guy who customized the interior for Trump's Boeing 757. "What about if Babe Ruth signed it? It's not $3 anymore." pic.twitter.com/PocXQEjLYW
— Dan Alexander (@DanAlexander21) October 13, 2023
10/ Important: It's clear now that the "presidential premiums" DID NOT make it into the final net worth documents that the Trump Org would have submitted to financial institutions. It's still interesting to see that stuff floating around in the draft calculations.
— Dan Alexander (@DanAlexander21) October 13, 2023
Meanwhile, in the chaotic bid to find a new GOP Speaker of the House...
17:25 , Oliver O'Connell
Here’s the latest from Gustaf Kilanderin Washington, DC:
Rep Jim Jordan (R-OH) is returning to the race for House speaker for another attempt after Majority Leader Steve Scalise (R-LA) failed to get the 217 votes needed from his 221 members to take the gavel.
The House Judiciary Committee chair announced his second attempt on Friday after he lost an internal GOP vote to Mr Scalise earlier this week, receiving 99 votes to 113 for the majority leader.
Mr Jordan is a staunch ally of former President Donald Trump and has a reputation in Congress as a rightwing hardliner and brawler. He may yet end up failing to get the votes he needs as the GOP divisions appear far from softening.
Since the GOP has a very small majority, Mr Jordan can only lose four votes, and a number of Republicans on the moderate end of the conference have already said they won’t back Mr Jordan, including Reps Ann Wagner (R-MO), Austin Scott (R-GA), and Don Bacon (R-NE).
Continued...
Jim Jordan launches fresh speaker bid after Steve Scalise fails
Trump lauds Israeli Defence Forces after backlash to earlier comments
17:18 , Oliver O'Connell
Donald Trump has praised the Israeli Defence Forces in a post on Truth Social, a day after a significant backlash to his earlier comments around the attack on Israel, including being scolded by the White House, Israeli officials, and fellow contenders for the Republican Party presidential nomination.
The former president — in a more muted fashion compared to his earlier all-caps diatribe — wrote:
I have always been impressed by the skill and determination of the Israeli Defence Forces. As they defend their Nation against ruthless terrorists, I want to wish every soldier the best of luck. May you return home safely to your families, and may God bless you all!
Watch: Hannity cuts off Ramaswamy after heated exchange
17:02 , Oliver O'Connell
Hannity, after dumping Vivek Ramaswamy following a VERY heated exchange: "I think people who never held public office, like you, maybe they’re not qualified to be president!"
Yes, Hannity actually said that. pic.twitter.com/Eh0pgTmOWp— Justin Baragona (@justinbaragona) October 13, 2023
Trump on trial: ‘Presidential premium’ applied to property value by company
16:43 , Oliver O'Connell
In Lower Manhattan, day nine of Donald Trump’s $250m civil fraud trial brought by the New York attorney general is underway.
Trump Organization Patrick Birney is back on the stand for direct examination by NY AG counsel Eric Haren and questioning begins where the court left off yesterday — with the problems of assessing the value of the Mar-a-Lago estate in Palm Beach, Florida.
The former president purchased the property in 1985 and when he ran into financial difficulties in the early 1990s he was able to convert it into a private members’ club. Similar to his golf course, this makes assigning a value to it difficult as there is a limited pool of buyers (versus an open market) and there are many restrictive covenants on the property imposed by local authorities in Palm Beach — for example, it cannot be used as a private home (despite Mr Trump currently living there for half the year).
Birney is asked about various real estate news articles from 2019 regarding other Palm Beach properties and their asking prices versus what they sold for.
“Did Allen Weisselberg direct you to use comparable properties to Mar-a-Lago [for valuation purposes] for Trump’s 2019 statement of financial condition?” Haren asks.
“Yes,” Birney replies.
Importantly: The presidential premiums never made it into the final statements of financial conditions.
Timeline is instructive. They were looking at ways to boost his net worth after the Forbes article exposed the error in Trump’s triplex square footage… from 30,000->10,996— Frank G. Runyeon (@frankrunyeon) October 13, 2023
Haren then asks about some of the supporting documents relating to one of Mr Trump’s statements of financial condition (the documents at the heart of the case) which applied a 15-35 per cent “presidential premium” to Trump property values.
These premiums never made it into the final statements of financial conditions, but Law360’s Frank Runyeon notes that it appears from the timeline that Birney, Weisselberg et al were looking at ways of boosting Mr Trump’s net worth after the 2017 Forbes article exposed the falsification of the square footage of the Trump Tower triplex penthouse and it was corrected downward from 30,000sq ft to 10,996 sq ft.
Trump tells court he had no duty to ‘support’ the US Constitution
16:30 , Mike Bedigan
Donald Trump has sought to have a lawsuit filed against him in the state of Colorado dismissed, by arguing that, as president, he was not required to “support” the US Constitution.
The bizarre legal defence, put forward by the former president’s attorneys, comes in response to a suit filed by Citizens for Responsibility and Ethics in Washington (CREW), which seeks to have him disqualified from the ballot in the state under the 14th Amendment.
A clause of the amendment, which passed into the Constitution in 1868, bans those who “engaged in insurrection” against the United States from holding any civil, military, or elected office without the approval of two-thirds of the House and Senate.
Mr Trump’s lawyers are arguing that the phrasing of the clause – section three – does not apply to all officers of the United States, “but only those who take an oath ‘to support the US Constitution’”.
“The Presidential oath, which the framers of the Fourteenth Amendment surely knew, requires the President to swear to ‘preserve, protect and defend’ the Constitution — not to ‘support’ the Constitution,” said the filing, obtained by news outlet Law & Crime.
Read more...
Donald Trump tells court he had no duty to ‘support’ the US Constitution
Trump prepares for showdown with Michael Cohen in return to New York court next week
16:05 , Oliver O'Connell
Donald Trump is planning a return to his New York civil fraud trial for a showdown with his former fixer turned sworn enemy Michael Cohen.
A source told The Associated Press that the former president will be back in court Tuesday through Thursday next week when Cohen is expected to take the stand to testify in the case that threatens to topple Mr Trump’s business empire in the Empire State.
Cohen, who was jailed for lying to Congress, welcomed the reunion.
“It’s been 5 years since we have seen one another. I look forward to the reunion. I hope Donald does as well,” he said in a text message to the AP.
Rachel Sharp reports.
Trump prepares for showdown with Michael Cohen in New York court
After testimony abruptly ends, NY AG looking at Forbes claims about Weisselberg, report says
15:45 , Oliver O'Connell
New York Attorney General Letitia James is examining accusations by Forbes that former Trump Organization CFO Allen Weisselberg perjured himself in court this week, according to a report by The Messenger.
Weisselberg was in the midst of his second stint on the witness stand in the $250m civil fraud case against him, his former employer, Donald Trump and his adult sons, when Forbes magazine dropped a bombshell article accusing him of lying under oath.
During his testimony on Tuesday, Weisselberg said he had never focused on calculating the value of Mr Trump’s Manhattan triplex penthouse based on a false tripling of its listed square footage and that it was de minimus to the former president’s overall wealth.
The valuation of such properties is the basis of the New York attorney general’s fraud case against the defendants in which they provided inaccurate statements to financial institutions to secure loans under more favourable terms.
On Thursday, Forbes published a timeline of their own investigation into the former president’s alleged net worth, including a string of emails, currently not in the attorney general’s possession, showing that Weisselberg “absolutely thought about Trump’s apartment—and played a key role in trying to convince Forbes over the course of several years that it was worth more than it really was”.
“Given the fact that these discussions continued for years, and that Weisselberg took a very detailed approach in reviewing Trump’s assets with Forbes, it defies all logic to think he truly believes what he is now saying in court,” Forbes senior editor Dan Alexander wrote.
After lunch on Thursday, Weisselberg’s testimony was abruptly halted and a new witness called with Manhattan Supreme Court Justice Arthur Engoron saying after a private sidebar with attorneys that the former Trump executive could be recalled by either side during the remainder of the trial.
Now, Adam Klasfled reports in The Messenger, citing sources close to NY AG James, that the state attorney general’s office is now looking into the Forbes report.
Forbes accuses Trump CFO Allen Weisselberg of lying under oath at fraud trial
Trump on trial: Day eight recap — New York court hears how property valuations formed basis of fraud
15:25 , Oliver O'Connell
Cross-examination of Deutsche Bank risk manager Nicholas Haigh continued on Thursday morning with Trump attorney Jesus Suarez questioning him about a 2012 loan of $107m secured by a Trump luxury hotel and condominium building in Chicago and a personal guarantee by Donald Trump.
Suarez kept making the point that the bank would lowball its valuations of Mr Trump’s net worth and assets after its own valuations and analysis of Trump properties and lend in accordance with those figures.
The implication Suarez was trying to get across to Judge Arthur Engoron (as there is no jury) was that Deutsche Bank knew the Trump Organization figures were inflated but still did business with them and therefore was not defrauded.
“Increasing the relationship with President Trump was important to Deutsche Bank’s private wealth management business, wasn’t it?” Suarez asked.
“Yes it was one of the aims of the private wealth management business to increase its relationships with all of its clients,” Haigh said.
Deutsche Bank was by far the biggest creditor to Trump and as of May 2022 the company owed the bank approximately $340m and spent tens of millions of dollars servicing the debt, according to the New York attorney general’s office.
Suarez continued to go through loan after loan and eventually Judge Engoron seemed to get bored and said that the examination was redundant and obvious, and the document says what it says.
“We can all read,” he said, pithily.
Returning to evidence heard yesterday, Suarez points to the reasoning the bank gives for extending credit to Trump other than his alleged net worth — his experience as a developer, his relationship with the bank etc.
He went on to note that there were no issues with repayments or refinancing. Judge Engoron said that that is not in dispute and points to his September summary judgment finding the defendants did defraud lenders but everything was paid on time.
Former Trump Organization CFO Allen Weisselberg then returned to the witness stand for the resumption of his direct examination by Louis Solomon of the New York Attorney General’s Office.
This came just an hour after the explosive allegations were published by Forbes about his earlier testimony.
Weisselberg was asked about the Trump partnership with real estate company Vornado in which they hold a 30 per cent stake in two office buildings in New York and San Francisco. Specifically, the prosecution wanted to know how cash is distributed from that partnership as that would affect the company’s liquidity profile.
There is also mention of an email exchange with Eric Trump in which they discuss holding off on paying back a small loan to keep the cash balance healthier on financial statements.
Solomon then brought up Weisselberg’s 2022 guilty plea to several counts of falsifying business records and tax fraud. He served a little over three months in jail and had to pay back taxes and other penalties that came out to be about $2m.
Weisselberg then parted ways with the Trump Organization and signed a severance agreement that stated in part that unless he was subpoenaed, he wouldn’t voluntarily cooperate or communicate with anyone with adverse claims against the company.
“Is it just a coincidence that under this separation agreement, you are being paid two million dollars, almost the exact amount you had to pay [in the criminal case]?” Solomon asked.
“Pure coincidence,” Weisselberg replied.
Big:
NYAG's counsel Louis Solomon digs in to the terms of Allen Weisselberg's $2 million severance agreement, including this section on "Employee Promises."
Solomon notes that it bars him from voluntarily cooperating.
The passage shown in court. pic.twitter.com/ccXNbkjUj3— Adam Klasfeld (@KlasfeldReports) October 12, 2023
Court resumed after lunch with the news that Weisselberg would not be retaking the stand [more on this later] but either side may recall him for testimony at some point in the future.
The next witness called was Patrick Birney, Vice President of Financial Operations at the Trump Organization and he was questioned by Eric Haren of the New York Attorney General’s Office.
Birney’s direct superiors at the Trump Organization were Weisselberg and former controller Jeff McConney and he was intimately involved with working on the assessments of Donald Trump’s net worth.
He confirms on the stand that he started helping to prepare Trump’s statements of financial condition around 2016, and continued to do so through until 2021.
After responding to a series of questions regarding appraisal and accounting technicalities that seemed designed to imply he had no formal training with “I don’t think so” and “no”, he then says: “I was not the final decision maker.”
Asked who was, he replied: “Allen Weisselberg.”
He testifies that there could be twenty to thirty drafts of Trump’s net worth statements.
In collating data for these statements each building had to be valued using a “cap rate”. These figures are important as a small change in the rate could result in a huge change in the estimated value of a property.
Dan Alexander of Forbes explained on X: “You take a profitability figure (net operating income) and divide it by a cap rate. The result is the estimated value. So a building that throws off, say, $7M of profit would be worth $7M/.05 = $140M with a ‘5 cap’.”
He continued: “Let’s say you want to make your building look more valuable. If you applied a "3 cap" to $7M of profitability, then suddenly, the building’s estimated value would fly up to $7M / .03 = $233M. A small tweak to an arcane number and--poof--your building looks $93M more valuable.”
These small changes could not only change the value of assets but ultimately the total net worth of Trump.
Birney testified that the process for preparing the statements of financial condition was different in 2020 than in previous years, with more people involved, including lawyers. This is likely because the New York Attorney General’s Office launched its civil investigation into the valuation process and Trump’s wealth in March 2019.
Questioning of Birney closed out day eight of the New York civil fraud trial of Donald Trump on the topic of the former president’s residences.
The court again heard about the change in the reported square footage of the triplex penthouse at Trump Tower with another reference to the Forbes article that revealed the lie about its size.
Prosecutors then turned from the size of the apartment to its value per square foot prompting the defence team to ask about the relevance of this method of pricing. The response was that it is another key variable in the calculation.
Discussion then turned to Mar-a-Lago and the implication that it is valued by the Trump Organization as a private home when in fact it is only allowed to be used as a members club under rules set by Palm Beach authorities. As it is under significant restrictions, unlike a private home — how would you assign a value to that?
Court then adjourned for the day.
Watch: Lincoln Project ad highlights contrasts between Biden and Trump
15:15 , Oliver O'Connell
Leadership vs lunacy. The choice is clear. pic.twitter.com/NNXDoZS7gk
— The Lincoln Project (@ProjectLincoln) October 13, 2023
Furious Trump links attack on Israel with ‘stollen’ 2020 election
14:55 , Oliver O'Connell
After a morning of reposting the thoughts of Mark Levin, Gregg Jarrett and Catturd, an apparently furious Donald Trump bashed out an all-caps rant in which he sought to link the attack on Israel with his false accusations that the 2020 election was “stollen” (yes, that classic Trump typo is back again).
The former president wrote (maybe, shouted into his phone?):
THE ATTACK ON ISRAEL WOULD NEVER HAVE HAPPENED, ZERO CHANCE, IF THE ELECTION OF 2020 WAS NOT RIGGED AND STOLLEN. IT SHOWS THE WORLD HOW IMPORTANT ELECTIONS ARE. IRAN WAS BROKE AND TALKING, NOW THEY ARE RICH AND WATCHING, WAITING TO MAKE THEIR MOVE, AND IT WILL BE A BIG ONE! HOW COULD CROOKED JOE BIDEN, THE WORST AND MOST INCOMPETENT PRESIDENT IN THE HISTORY OF THE UNITED STATES, ALLOW THIS TO HAPPEN? WE WENT FROM THE ABRAHAM ACCORDS AND PEACE, TO UNPRECEDENTED DEATH AND DESTRUCTION. NEVERTHELESS, THIS BIG AND VERY DANGEROUS PROBLEM IS SOLVABLE. MAKE AMERICA GREAT AGAIN!!!
After rebukes from Washington and Israel, Trump pivots to record in Middle East
14:35 , Oliver O'Connell
Having earned stern rebukes from both the White House and an Israeli minister, as well as his rivals for the Republican Party presidential nomination, Donald Trump’s campaign tried to change the conversation back to his track record in the Middle East as president.
In a campaign statement late on Thursday, the former president said:
There was no better friend or ally of Israel than President Donald J Trump. Under my leadership, the United States stood in complete solidarity with Israel, and as a result, Israel was safe, America was safe, and for the first time in decades, we made historic strides for Peace in the Middle East. As an example, all of the experts said that the Abraham Accords couldn't be done, but we got them done, and were able to set the Middle East in a new and positive direction.
Mr Trump then tried to push blame onto the current administration:
Crooked Joe Biden's weakness and incompetence has empowered and emboldened our enemies all over the World, and now, many lives have been so needlessly lost. What a horrible failure Biden has been in sending 6 Billion Dollars to Iran, in a simple hostage swap, when Iran is the state sponsor of terrorist groups, Hamas, Hezbollah, and others.
Biden's massive loosening of sanctions allowed 80-100 Billion Dollars of Iranian oil sales — much of which the regime poured into financing its bloody campaigns of terror around the globe. When I was President, and exclusively because of me, Iran was BROKE, and wanting to make a deal. No wonder the World is in absolute chaos! With President Trump back in office, Israel, and everyone else, will be SAFE AGAIN!
Here’s the full story about the alleged $6bn sent to Iran:
US and Qatar agree to freeze access to $6bn Iran account after Hamas attack
Later he added on Truth Social:
American “Security Analysts,” and people that work for Crooked Joe Biden, must stop talking about Israel’s military and defensive areas of weakness and vulnerability, giving the enemies ideas that will not be allowed to exist, because the United States of America will stand FULLY behind Israel!
Israeli official hits back at Trump’s ‘shameful’ comments
14:15 , Oliver O'Connell
Israel’s communications minister, Shlomo Karhi, has condemned former US president Donald Trump’s remarks in the wake of the Hamas terror attacks, which included the 2024 Republican frontrunner claiming that Israeli Prime Minister Benjamin Netanyahu “let us down.”
Mr Karhi told Israel’s Channel 13 that it is “shameful that a man like that, a former US president, abets propaganda and disseminates things that wound the spirit of Israel’s fighters and its citizens.”
“We don’t have to bother with him and the nonsense he spouts,” the communications minister said.
Kelly Rissman reports.
Israeli official hits back at Trump’s ‘shameful’ comments in wake of Hamas attack
Judge Aileen Cannon postpones Walt Nauta conflicts hearing
14:00 , Oliver O'Connell
Judge Aileen Cannon has postponed the hearing for Donald Trump co-defendant Walt Nauta over potential conflicts of interest with his lawyer Stan Woodward.
Mr Woodward previously represented the individual identified in Jack Smith’s superseding indictment as “Trump Employee 4”, who has been identified in the media as Yuscil Taveras, Mar-a-Lago’s former director of IT. Two other potential witnesses are also represented by Mr Woodward.
Reportedly unamused, Judge Cannon said she was postponing the hearing because the government had introduced new arguments related to the matter.
She admonished prosecutors for “wasting the court’s time” and said a new hearing will be scheduled at a later date.
Earlier, Mar-a-Lago aide Carlos De Oliveira waived conflict concerns regarding his lawyer and previous conflicts at an earlier hearing,
Cannon rapped the government for "wasting" the court's time, and said a new hearing will be scheduled at a later date.
— Maggie Haberman (@maggieNYT) October 12, 2023
Trump wildly claims Biden on drugs
13:45 , Mike Bedigan
“Did you see the other day? … You know what happens after about 20 minutes, the stuff that he’s taking wears off so he gets a little groggy, he gets a little bit groggy.
“They say ‘get him off the stage, that s*** is wearing off’... ”
Referring to a White House scandal earlier this year, he added: “And I’m sure that the cocaine that they found in the White House… I feel certain it had nothing to do with Hunter and Joe, by the way…. ‘Here dad have a little of this stuff it’s gonna liven you up a bit.
“Can you imagine they found a stash that you wouldn’t believe and nobody laid claim to it.”
Shocking new poll puts Trump nine points ahead of Biden in Pennsylvania
13:15 , Kelly Rissman
A new poll of Pennsylvania voters has put former president Donald Trump nine points ahead of President Joe Biden in the state.
The Emerson College 11 October poll revealed the former president had 45 per cent of the vote compared to Mr Biden’s 36 per cent. Eleven per cent of the participants said they would vote for “someone else” while eight percent remained undecided.
Mr Biden won the state in 2020 by a slim margin, which prompted Mr Trump to challenge his loss, which ultimately was rejected in the courts.
According to the poll, 50 per cent of Trump voters said they can’t think of anything the former president might do in the near future that would make them choose not to support him in 2024.
Meanwhile, 22 per cent said they can think of something he might say or do to sway their vote away from Mr Trump.
New poll places Trump nine points ahead of Biden in Pennsylvania
Trump slammed by White House for calling Hezbollah ‘very smart’
12:30 , Oliver O'Connell
The White House has condemned former president Donald Trump for calling the Lebanese militant group Hezbollah “very smart” in remarks on Thursday night in Florida.
His comments came less than a week after militant group Hamas launched a massive attack on Israel from the Gaza Strip.
Speaking at a “Club 47 USA” event in West Palm Beach on Wednesday (11 October), the former president said: “Can you imagine national defence people, and they said ‘gee, I hope Hezbollah doesn’t attack from the north because that’s the most vulnerable spot’.
“And I said ‘Wait a minute. You know Hezbollah’s very smart. They’re all very smart.’ The press doesn’t like it when I say that. You know, I said that about President Xi of China, 1.4 billion people, he controls it with an iron fist. I said ‘he’s a very smart man’.
“They killed me the next day… ‘He said he was smart’. What am I gonna say… But Hezbollah, they’re very smart.”
White House slams ‘unhinged’ Trump for calling Hezbollah ‘very smart’
Trump mocked for appearing to blame ‘hummus’ for attacks on Israel
11:30 , Martha McHardy
Donald Trump is being mocked for appearing to blame “hummus” for the attacks in Israel over the weekend.
At a rally in Cedar Rapids, Iowa, Mr Trump mispronounced the name of the terrorist group Hamas several times, appearing to refer to it as “hummus”.
A clip of the speech went viral on social media and the former president was also mocked by TV host Jimmy Kimmel.
In the opening monologue of his show, Mr Kimmel joked that Mr Trump’s speech displayed the “deep well of insight he has into this ongoing conflict in the Middle East”.
“Could you imagine anyone else in the world doing anything even remotely like that?” Mr Kimmel asked.
Voices: ‘Dysfunctional, disorganised, broken’ — The GOP’s speaker race is a total mess
10:30 , Oliver O'Connell
Eric Garcia writes:
At least Steve Scalise didn’t start measuring the drapes in the speaker’s office.
As of Thursday afternoon, the House Republican conference appears far from picking a speaker of the House, nine days after the motion to vacate that deposed Kevin McCarthy.
Republicans spent much of the first part of Thursday in the basement of the Capitol once again deliberating about whether to promote Mr Scalise from House majority leader to speaker. If that sounds familiar, it’s because they spent much of Wednesday in the Longworth House Office Building before they nominated Mr Scalise.
That did little to assuage frustration, particularly from many supporters of Rep Jim Jordan (R-OH). But all of the discontent – both from opponents and supporters – seems to betray the fact that nobody really knows why they are doing what they are doing or how exactly how to do it. Rather, conversations with members gives the impression that Republicans are winging it.
Read more...
‘Dysfunctional, disorganised, broken’: The GOP’s speaker race is a total mess
Trump plans showdown with Cohen in New York court
10:08 , Rachel Sharp
Donald Trump is planning to make a return to his New York civil fraud trial for a showdown with his former fixer turned sworn enemy Michael Cohen.
A source told The Associated Press that the former president will be back in court on Tuesday when Cohen is expected to take the stand to testify.
Cohen, who was jailed for lying to Congress, welcomed the reunion.
“It’s been 5 years since we have seen one another. I look forward to the reunion. I hope Donald does as well,” he said in a text message to AP.
Watch: Are Trump’s remarks about Israel ‘constructive behaviour’?
09:15 , Oliver O'Connell
Thune: People can say what they want
Cavuto: That’s a former leader of the free world saying these things about Hezbollah, repeating the name Barack Hussein Obama constantly. Is that constructive behavior? pic.twitter.com/mg1AQJdtQX— Acyn (@Acyn) October 12, 2023
Forbes accuses former Trump Organization CFO of lying under oath at fraud trial
08:00 , Oliver O'Connell
Former Trump Organization CFO Allen Weisselberg has been slammed by Forbes for his testimony in court from earlier this week, at Donald Trump’s New York fraud trial.
In an article published on Thursday (12 October), the ex-Trump employee is accused by the magazine of lying under oath when he took the stand this week.
The publication was referred to several times during Weisselberg’s testimony as part of the $250m civil fraud lawsuit brought against Donald Trump, his sons, his associates — including Weisselberg — and his company by New York Attorney General Letitia James.
The defendants are charged with inflating Mr Trump’s net worth in order to get favourable financing terms from banks. They have all pleaded not guilty.
Judge Arthur Engoron made a pre-trial ruling that this was the case and ordered the cancellation of their business certificates — effectively putting an end to their real estate empire in New York (though this is now being appealed).
To arrive at the inflated figures that they presented to financial institutions, the court heard from the prosecution how the Trump Organization would allegedly in some cases use incorrect data.
Forbes accuses Trump CFO Allen Weisselberg of lying under oath at fraud trial
Ronna McDaniel criticised for saying Israel attack is ‘great opportunity’ for GOP candidates to slam Biden
06:30 , Oliver O'Connell
The chair of the Republican National Committee, Ronna McDaniel, is facing criticism after she appeared on Fox News to comment on the response of the Republican presidential candidates to the conflict between Israel and Hamas.
Ms McDaniel said that it’s a “great opportunity for our candidates to contrast where Republicans have stood with Israel time and time again and Joe Biden has been weak”.
She quickly faced criticism following her comments on Saturday.
Gustaf Kilander reports.
RNC chair criticised for calling Israel attack a ‘great opportunity’ for GOP
Jim Jordan’s ‘ignorant’ request for info on Trump charges refused by Fulton County DA
04:30 , Oliver O'Connell
Fulton County District Attorney Fani Willis came in swinging in her latest response to House Judiciary Chair Jim Jordan, this time concerning a request for more information regarding her criminal charges against former President Donald Trump.
“A charitable explanation of your correspondence is that you are ignorant of the United States and Georgia Constitutions and codes,” Ms Willis wrote on 11 October.
She continued, “A more troubling explanation is that you are abusing your authority as Chairman of the Committee on the Judiciary to attempt to obstruct and interfere with a Georgia criminal prosecution.”
She was replying to Mr Jordan’s 27 September demands for more information on the Trump case, calling the district attorney’s prosecution of the former president “politically motivated.”
GOP House speaker race: Conservative holdouts dig in their heels against Scalise
03:30 , Oliver O'Connell
Republican opponents of making Steve Scalise speaker of the House dug their heels in on Thursday before the House was set to vote for a new leader.
The House Republican Conference met in the basement of the US Capitol on Thursday to continue their deliberations after they had spent most of Wednesday morning in the Longworth House Office Building nominating Mr Scalise.
But many Republicans who supported Rep Jim Jordan (R-OH), a hardline conservative and chairman of the House Judiciary Chairman, remain dissatisfied with Mr Scalise as the nominee for speaker.
Eric Garcia filed this report from Capitol Hill.
Conservative holdouts dig in their heels against Scalise for House speaker
Trump criticises former ally Netanyahu over attack on Israel
02:30 , Oliver O'Connell
Donald Trump has criticised his former ally Benjamin Netanyahu and called the Lebanese militant group Hezbollah “smart” as the Israel-Palestinian conflict reached its worst point in 50 years.
The former US president and the frontrunner for the 2024 Republican presidential nomination told Fox News that Israel prime minister Netanyahu failed to prepare against Hamas’ deadliest offensive and was caught unprepared.
“He has been hurt very badly because of what’s happened here,” Mr Trump said of Mr Netanyahu on Wednesday night. “He was not prepared. He was not prepared and Israel was not prepared.”
Shweta Sharma has the story.
Trump criticises former ally Netanyahu as unprepared for Hamas attack on Israel
Trump’s financial statements were key to getting loans, ex-bank official tells fraud trial
01:30 , AP
Donald Trump obtained hundreds of millions of dollars in loans using financial statements that a court has since deemed fraudulent, a retired bank official testified Wednesday at the former president’s New York civil fraud trial.
Trump’s statements of financial condition were key to his approval for a $125 million loan in 2011 for his Doral, Florida, golf resort and a $107 million loan in 2012 for his Chicago hotel and condo skyscraper, former Deutsche Bank risk management officer Nicholas Haigh testified.
They also helped Trump secure bigger loans and lower interest rates, said Haigh, who headed the risk group for the bank’s private wealth management unit from 2008 to 2018.
A judge last month ruled that Trump and his company, the Trump Organization, committed years of fraud by exaggerating the value of Trump’s assets and net worth on the financial statements he gave to banks, insurers and others to make deals and secure loans.
Trump’s longtime finance chief, Allen Weisselberg, acknowledged in testimony Tuesday that information in the financial statements wasn’t always accurate.
Read more...
Donald Trump’s financial statements were key to getting loans, ex-bank official tells fraud trial
At Romney-Ryan donor summit disaffected Republicans seek alternatives to Trump
Friday 13 October 2023 00:30 , Andrew Feinberg
The last Republicans to top a presidential ticket before Donald Trump’s takeover of the GOP are still holding out hope that a more palatable alternative to the ex-president will present itself before nominating contests for next year’s election are complete.
On Tuesday, Utah Senator Mitt Romney and former Speaker of the House Paul Ryan convened a high-level confab in Park City, Utah to discuss foreign policy, technology and business matters at this year’s edition of the annual E2 summit.
Among the attendees will be four of the candidates who’ve been vying — thus far unsuccessfully — to gain traction against Mr Trump in next year’s GOP primary: ex-UN Ambassador Nikki Haley, former vice president Mike Pence, former New Jersey governor Chris Christie and North Dakota Governor Doug Burgum.
Who is the mystery Trump family member accused of withholding information from Jan 6 case?
Thursday 12 October 2023 23:30 , Kelly Rissman
In a new motion filed by Special Counsel Jack Smith in the January 6 case against Donald Trump, the prosecutor accused a “a family member of the defendant” of withholding information.
The Tuesday filing states that during the course of the government’s investigation, “at least 25 witnesses withheld information, communications, and documents based on assertions of the attorney-client privilege under circumstances where the privilege holder appears to be the defendant or his 2020 presidential campaign.”
“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 said.
However, Mr Smith never named the Trump family member.
Mystery Trump family member accused of withholding information from Jan 6 case
Trump paying attention to New York trial ahead of reported return to courtroom
Thursday 12 October 2023 23:00 , Oliver O'Connell
He may be at home at Mar-a-Lago and not sitting in court in Lower Manhattan (for now!), but Donald Trump is keeping up with testimony in his civil fraud trial regarding the inflation of his net worth to secure better financing terms.
After yesterday’s testimony about the financing of the development of the Trump International Hotel in Washington, DC by Deutsche Bank, he posted this on Truth Social today:
This Trophy was given to me by Deutsche Bank because they were so proud of the Loan they made. They had the best Lawyers, the smartest Loan Officers, and were thrilled to do business with “TRUMP.” Interest was fully paid every month (no payment ever missed!), never received a default notice, and if Interest came due on a weekend, I paid it on a Friday. THE LOAN WAS PAID OFF FAR AHEAD OF SCHEDULE! Except for me, because of the Corrupt DOJ, FBI, and Racist New York State Attorney General, there were no Victims, there were only happy Bankers! But despite a PERFECT LOAN, I was sued by the Incompetent, Radical Left New York State AG, Letitia “Peekaboo” James, under a Statute that was never used for this before, and where I am not even entitled to a Jury. A Liberal Democrat Judge, with all Trump Haters surrounding him, is going to make this very important decision. If I had a Jury, I would win easily, but regardless, this is a case that should never have been brought. ELECTION INTERFERENCE!
This Trophy was given to me by Deutsche Bank because they were so proud of the Loan they made. They had the best Lawyers, the smartest Loan Officers, and were thrilled to do business with “TRUMP.” Interest was fully paid every month (no payment ever missed!), never received a… pic.twitter.com/D98Lwd55ws
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) October 12, 2023
Not long after the former president made that post, The Messenger reported that he would be making a return to the New York Supreme Court next week.
The outlet reports:
The former president and 2024 GOP frontrunner plans to fly from Iowa after a Monday rally and head to New York State Supreme Court on Tuesday, Wednesday and Thursday, according to a source familiar with his travel plans.
“He wants to be there. This is his personal business, his family business. So it cuts a little closer,” said the source, who was not authorized to publicly speak about Trump’s frame of mind. “He wants to be there to take a stand and show people he’s not backing down.”
Trump’s ex-lawyer and fixer Michael Cohen is expected to testify on Tuesday, following testimony by Trump Organization’s accounting department.
"It’s been 5 years since we have seen one another," Cohen told The Messenger. "I look forward to the reunion."
Trump would disparage MAGA fans in private, claims Pence aide
Thursday 12 October 2023 22:30 , Oliver O'Connell
“Well, I think it speaks to an unfortunate state of the Republican Party,” Olivia Troye told the hosts of The View. “It is certainly not the party that I want it to be and not the party that I believe it has been in the past.”
“I think he has done a great job of sort of marketing himself as the champion for all of these people who are behind him in this movement,” she continued. “But, like, we’ve sat in these meetings. What is so frustrating and angering to me is he has nothing in common with any of his supporters and I detest the way he speaks about them.”
The way he spoke “was so disparaging to them,” she described.
Kelly Rissman has the full story.
Former Pence aide says Trump would disparage MAGA fans in private
Voices: ‘Dysfunctional, disorganised, broken’ — The GOP’s speaker race is a total mess
Thursday 12 October 2023 22:10 , Oliver O'Connell
Eric Garcia writes:
At least Steve Scalise didn’t start measuring the drapes in the speaker’s office.
As of Thursday afternoon, the House Republican conference appears far from picking a speaker of the House, nine days after the motion to vacate that deposed Kevin McCarthy.
Republicans spent much of the first part of Thursday in the basement of the Capitol once again deliberating about whether to promote Mr Scalise from House majority leader to speaker. If that sounds familiar, it’s because they spent much of Wednesday in the Longworth House Office Building before they nominated Mr Scalise.
That did little to assuage frustration, particularly from many supporters of Rep Jim Jordan (R-OH). But all of the discontent – both from opponents and supporters – seems to betray the fact that nobody really knows why they are doing what they are doing or how exactly how to do it. Rather, conversations with members gives the impression that Republicans are winging it.
Read more...
‘Dysfunctional, disorganised, broken’: The GOP’s speaker race is a total mess
Trump on trial: Day eight of New York fraud case wraps
Thursday 12 October 2023 21:53 , Oliver O'Connell
Questioning of Patrick Birney closed out day eight of the New York civil fraud trial of Donald Trump on the topic of the former president’s residences.
The court again hears about the change in reported square footage fo the triplex penthouse at Trump Tower with another reference to the Forbes article that revealed the lie about its size.
Prosecutors then turn from the size of the apartment to its value per square foot prompting the defence team to ask what the relevance of this pricing is. The response is that it is another key variable in the calculation.
30/ Trump's lawyer stands up and asks, basically, why are we getting into the price per square foot here--I thought the disagreement was about the number of square feet? The AG's office responds that the price / sf is another key variable in the calculation.
— Dan Alexander (@DanAlexander21) October 12, 2023
Discussion then turns to Mar-a-Lago and the implication that it is valued by the Trump Organization as a private home when in fact it is only allowed to be used as a members club under rules set by Palm Beach authorities. It is under significant restrictions, unlike a private home — how would you assign a value to that?
The case continues at 10am ET tomorrow.
Full story: Forbes accuses former Trump Organization CFO of lying under oath at fraud trial
Thursday 12 October 2023 21:42 , Oliver O'Connell
Former Trump Organization CFO Allen Weisselberg has been slammed by Forbes for his testimony in court from earlier this week, at Donald Trump’s New York fraud trial.
In an article published on Thursday (12 October), the ex-Trump employee is accused by the magazine of lying under oath when he took the stand this week.
The publication was referred to several times during Weisselberg’s testimony as part of the $250m civil fraud lawsuit brought against Donald Trump, his sons, his associates — including Weisselberg — and his company by New York Attorney General Letitia James.
The defendants are charged with inflating Mr Trump’s net worth in order to get favourable financing terms from banks. They have all pleaded not guilty.
Judge Arthur Engoron made a pre-trial ruling that this was the case and ordered the cancellation of their business certificates — effectively putting an end to their real estate empire in New York (though this is now being appealed).
To arrive at the inflated figures that they presented to financial institutions, the court heard from the prosecution how the Trump Organization would allegedly in some cases use incorrect data.
Forbes accuses Trump CFO Allen Weisselberg of lying under oath at fraud trial
Judge Aileen Cannon postpones Walt Nauta conflicts hearing
Thursday 12 October 2023 21:20 , Oliver O'Connell
Judge Aileen Cannon has postponed the hearing for Donald Trump co-defendant Walt Nauta over potential conflicts of interest with his lawyer Stan Woodward.
Mr Woodward previously represented the individual identified in Jack Smith's superseding indictment as “Trump Employee 4”, who has been identified in the media as Yuscil Taveras, Mar-a-Lago's former director of IT. Two other potential witnesses are also represented by Mr Woodward.
Reportedly unamused, Judge Cannon said she was postponing the hearing because the government had introduced new arguments related to the matter.
She admonished prosecutors for “wasting the court’s time” and said a new hearing will be scheduled at a later date.
Earlier, Mar-a-Lago aide Carlos De Oliveira waived conflict concerns regarding his lawyer and previous conflicts at an earlier hearing,
Cannon rapped the government for "wasting" the court's time, and said a new hearing will be scheduled at a later date.
— Maggie Haberman (@maggieNYT) October 12, 2023
Trump to return to New York court next week, report says
Thursday 12 October 2023 21:05 , Oliver O'Connell
Donald Trump will make another appearance in court in Lower Manhattan next week for his civil fraud trial according to reporting by The Messenger.
The former president and 2024 GOP frontrunner plans to fly from Iowa after a Monday rally and head to New York State Supreme Court on Tuesday, Wednesday and Thursday, according to a source familiar with his travel plans.
“He wants to be there. This is his personal business, his family business. So it cuts a little closer,” said the source, who was not authorized to publicly speak about Trump’s frame of mind. “He wants to be there to take a stand and show people he’s not backing down.”
Trump's ex-lawyer and fixer Michael Cohen is expected to testify on Tuesday, following testimony by Trump Organization’s accounting department.
"It’s been 5 years since we have seen one another," Cohen told The Messenger. "I look forward to the reunion."
Trump on trial: Company employee says net worth statements could go through 30 drafts
Thursday 12 October 2023 20:45 , Oliver O'Connell
Patrick Birney, Vice President of Financial Operations at the Trump Organization testifies that there could be twenty to thirty drafts of Donald Trump’s net worth statements.
In collating data for these statements each building had to be valued using a “cap rate”. These figures are important as a small change in the rate could result in a huge change in the estimated value of a property.
Dan Alexander of Forbes explains: “You take a profitability figure (net operating income) and divide it by a cap rate. The result is the estimated value. So a building that throws off, say, $7M of profit would be worth $7M/.05 = $140M with a ‘5 cap’.”
He continues: “Let's say you want to make your building look more valuable. If you applied a "3 cap" to $7M of profitability, then suddenly, the building's estimated value would fly up to $7M / .03 = $233M. A small tweak to an arcane number and--poof--your building looks $93M more valuable.”
20/ Let's say you want to make your building look more valuable. If you applied a "3 cap" to $7M of profitability, then suddenly, the building's estimated value would fly up to $7M / .03 = $233M. A small tweak to an arcane number and--poof--your building looks $93M more valuable.
— Dan Alexander (@DanAlexander21) October 12, 2023
These small changes could not only change the value of assets but ultimately the total net worth of Donald Trump.
Birney testifies that the process for preparing the statements of financial condition was different in 2020 than in previous years, with more people involved, including lawyers.
The New York Attorney General’s Office launched its civil investigation into the valuation process and Trump’s wealth in March 2019.
Trump baselessly claims Biden may be on drugs in rambling speech
Thursday 12 October 2023 20:30 , Mike Bedigan
Donald Trump hit out at a “groggy” Joe Biden in yet another rambling speech, during which he appeared to accuse the president of taking drugs to stay awake while giving press conferences.
The former president once again compared his own mental capacity to that of Mr Biden, telling a crowd in Palm Beach, Florida, that he had no problem exiting the stage at his own events.
Speaking about upcoming presidential candidate nominations, Mr Trump said: “We’re inches away and we have a man that literally can’t speak. He can’t get off the stage.
“The other day he tried to get off the stage and look, I’m up here and there’s a lot of people, there’s a lot of television going crazy. There’s so much.
“I’m up here, but you know when I’m finished I’m gonna look over there. I’m gonna see the exit. I’m gonna look over. I can take that one. What I can’t do is walk through the back wall…”
Read more...
Trump wildly claims Biden may be on drugs in rambling speech
What’s the latest with the GOP speaker vote?
Thursday 12 October 2023 20:00 , Oliver O'Connell
It’s going about as smoothly as you’d expect as Eric Garcia reports from Capitol Hill.
Republican opponents of making Steve Scalise speaker of the House dug their heels in on Thursday before the House was set to vote for a new leader.
The House Republican Conference met in the basement of the US Capitol on Thursday to continue their deliberations after they had spent most of Wednesday morning in the Longworth House Office Building nominating Mr Scalise.
But many Republicans who supported Rep Jim Jordan (R-OH), a hardline conservative and chairman of the House Judiciary Chairman, remain dissatisfied with Mr Scalise as the nominee for speaker.
Read more...
Conservative holdouts dig in their heels against Scalise for House speaker
Here’s a quick guide to who opposes Steve Scalise and why as compiled by Haley Talbot of CNN:
More columns, as a treat pic.twitter.com/smEb2i1SdT
— Haley Talbot (@haleytalbotcnn) October 12, 2023
Court resumes but Weisselberg not retaking stand
Thursday 12 October 2023 19:52 , Oliver O'Connell
Court resumed in Lower Manhattan after lunch in the civil fraud trial of Donald Trump et al with the news that former Trump Organization CFO Allen Weisselberg will not be retaking the stand today, but either side may recall him for testimony at some point in the future.
The next witness is called: Patrick Birney, Vice President of Financial Operations at the Trump Organization.
He is being questioned by Eric Haren of the New York Attorney General’s Office.
Birney’s direct superiors at the Trump Organization were Weisselberg and former controller Jeff McConney and he was intimately involved with working on the assessments of Donald Trump's net worth.
Birney confirms on the stand that he started helping to prepare Trump’s statements of financial condition around 2016, and continued to do so through until 2021.
After responding to a series of questions regarding appraisal and accounting technicalities with “I don’t think so” and “no”, he then says: “I was not the final decisionmaker.”
Asked who was, he replies: “Allen Weisselberg.”
Fani Willis comes out swinging against Jim Jordan’s ‘ignorant’ request
Thursday 12 October 2023 19:30 , Oliver O'Connell
Fulton County District Attorney Fani Willis came in swinging in her latest response to House Judiciary Chair Jim Jordan, this time concerning a request for more information regarding her criminal charges against former President Donald Trump.
“A charitable explanation of your correspondence is that you are ignorant of the United States and Georgia Constitutions and codes,” Ms Willis wrote on 11 October.
She continued, “A more troubling explanation is that you are abusing your authority as Chairman of the Committee on the Judiciary to attempt to obstruct and interfere with a Georgia criminal prosecution.”
Kelly Rissman has the full story.
Fulton County DA refuses Jim Jordan’s ‘ignorant’ request for info on Trump charges
Shock new poll places Trump nine points ahead of Biden in Pennsylvania
Thursday 12 October 2023 19:10 , Oliver O'Connell
A new poll of Pennsylvania voters has put former president Donald Trump nine points ahead of President Joe Biden in the state.
The Emerson College 11 October poll revealed the former president had 45 per cent of the vote compared to Mr Biden’s 36 per cent. Eleven per cent of the participants said they would vote for “someone else” while eight per cent remained undecided.
Mr Biden won the state in 2020 by a slim margin, which prompted Mr Trump to challenge his loss, which ultimately was rejected in the courts.
Kelly Rissman has the details.
New poll places Trump nine points ahead of Biden in Pennsylvania
NY AG introduces Weisselberg’s severance agreement in court
Thursday 12 October 2023 18:55 , Oliver O'Connell
Big:
NYAG's counsel Louis Solomon digs in to the terms of Allen Weisselberg's $2 million severance agreement, including this section on "Employee Promises."
Solomon notes that it bars him from voluntarily cooperating.
The passage shown in court. pic.twitter.com/ccXNbkjUj3— Adam Klasfeld (@KlasfeldReports) October 12, 2023
Israeli minister brands Trump ‘shameful’ over ‘nonsense’ comments
Thursday 12 October 2023 18:45 , Oliver O'Connell
Israeli Communications Minister Shlomo Karhi has responded to the comments made by former president Donald Trump about Israel, Prime Minister Benjamin Netanyahu, and Defence Minister Yoav Gallant.
In remarks at an event in Florida, Mr Trump appeared to mock Israel for failing to anticipate the attack by Hamas in the south on Saturday and for not going on the offensive against Hezbollah in the north after clashes on that border.
He also attacked Mr Netanyahu for “letting him down” and Mr Gallant, whom he called a “jerk”.
Speaking to Israel’s Channel 13, Mr Karhi said it is “shameful that a man like that, a former US president, abets propaganda and disseminates things that wound the spirit of Israel’s fighters and its citizens.”
“We don’t have to bother with him and the nonsense he spouts,” Karhi says. Asked if Trump’s comments make it clear that he can’t be relied on, Karhi replies, “Obviously.”
More from Shlomo Karhi:
"We don’t have to bother with him and the nonsense he spouts,” Karhi says.
Asked if Trump’s comments make it clear that he can’t be relied on, Karhi replies, “Obviously.”https://t.co/UrnYzudFEj— Aaron Blake (@AaronBlake) October 12, 2023
Watch: Trump will ‘never forget’ Israel ‘let us down’ by not participating in Soleimani operation
Thursday 12 October 2023 18:35 , Oliver O'Connell
Whoa. Trump just attacked Israel and said that he'll "never forget" that they didn't participate in the Soleimani operation. He said Israel "let us down" and needs to "straighten it out" and called them weak, saying they should "strengthen themselves up." pic.twitter.com/pMrWLt8ojz
— MeidasTouch (@MeidasTouch) October 12, 2023
If you thought Trump wasn’t paying attention to his New York trial, you’d be wrong...
Thursday 12 October 2023 18:20 , Oliver O'Connell
He may be at home at Mar-a-Lago and not sitting in court in Lower Manhattan, but Donald Trump is keeping up with testimony in his civil fraud trial regarding the inflation of his net worth to secure better financing terms.
After yesterday’s testimony about the financing of the development of the Trump International Hotel in Washington, DC by Deutsche Bank, he posted this on Truth Social today:
This Trophy was given to me by Deutsche Bank because they were so proud of the Loan they made. They had the best Lawyers, the smartest Loan Officers, and were thrilled to do business with “TRUMP.” Interest was fully paid every month (no payment ever missed!), never received a default notice, and if Interest came due on a weekend, I paid it on a Friday. THE LOAN WAS PAID OFF FAR AHEAD OF SCHEDULE! Except for me, because of the Corrupt DOJ, FBI, and Racist New York State Attorney General, there were no Victims, there were only happy Bankers! But despite a PERFECT LOAN, I was sued by the Incompetent, Radical Left New York State AG, Letitia “Peekaboo” James, under a Statute that was never used for this before, and where I am not even entitled to a Jury. A Liberal Democrat Judge, with all Trump Haters surrounding him, is going to make this very important decision. If I had a Jury, I would win easily, but regardless, this is a case that should never have been brought. ELECTION INTERFERENCE!
This Trophy was given to me by Deutsche Bank because they were so proud of the Loan they made. They had the best Lawyers, the smartest Loan Officers, and were thrilled to do business with “TRUMP.” Interest was fully paid every month (no payment ever missed!), never received a… pic.twitter.com/D98Lwd55ws
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) October 12, 2023
Thursday 12 October 2023 18:07 , Oliver O'Connell
Weisselberg is asked about the Trump partnership with real estate company Vornado in which they hold a 30 per cent stake in two office buildings in New York and San Francisco. Specifically, the prosecution wants to know how cash is distributed from that partnership as it will affect the company’s liquidity profile.
There is also mention of an email exchange with Eric Trump in which they discuss holding off on a paying back a small loan to keep the cash balance healthier on financial statements.
Solomon then brings up Weisselberg’s 2022 guilty plea to several counts of falsifying business records and tax fraud. He served a little over 3 months in jail and had to pay back taxes and other penalties that came out to be about $2m. Weisselberg parted ways with the company and signed a severance agreement that states in part that unless he’s subpoenaed, he won’t voluntarily cooperate or communicate with anyone with adverse claims against the company.
“Is it just a coincidence that under this separation agreement that your being paid two million dollars, almost the exact amount you had to pay [in the criminal case]?” Solomon asks.
“Pure coincidence,” Weisselberg says.
The court breaks for lunch.
6/ The agreement requires Weissselberg to promise that "except for acts or testimony compelled by subpoena or other lawful process issued by a court of competent jurisdiction he will not (1) communicate with, provide information to, or otherwise cooperate in any way."
— Dan Alexander (@DanAlexander21) October 12, 2023
Weisselberg returns to stand for more direct examination
Thursday 12 October 2023 18:00 , Oliver O'Connell
Nicholas Haigh’s testimony has concluded.
Former Trump Organization CFO Allen Weisselberg has now returned to the witness stand for the resumption of his direct examination by Louis Solomon of the New York Attorney General’s Office.
This comes just an hour after the explosive allegations published by Forbes about his earlier testimony.
So! We've got Weisselberg back on the stand now and there's a bombshell report from Forbes an hour ago accusing him of lying on the stand. We'll be listening to see if that get's brought up...https://t.co/8zjQGV8Dzr
— Frank G. Runyeon (@frankrunyeon) October 12, 2023
Forbes accuses Trump Org CFO of lying under oath about Trump Tower penthouse
Thursday 12 October 2023 17:45 , Oliver O'Connell
Forbes has slammed former Trump Organization CFO Allen Weisselberg’s testimony from earlier this week, accusing him of lying under oath.
The publication was referred to multiple times during Weisselberg’s time on the stand as part of the $250m civil fraud lawsuit brought against Donald Trump, his sons, his associates — including Weisselberg — and his company. They are charged with inflating Mr Trump’s net worth in order to get favourable financing terms from banks.
In order to arrive at the inflated figures, the company would in some cases use incorrect facts such as tripling the square footage of Mr Trump’s triplex penthouse apartment at Trump Tower on Manhattan’s Fifth Avenue, claiming it was 30,000sq ft and not 10,996sq ft as it actually is.
Weisselberg argued in court that he had little to do with the calculation of the penthouse’s value, repeating the claim several times and saying it was not a concern and a de minimus asset in relation to the overall financial condition of Mr Trump.
Dan Alexander, senior editor for Forbes, who has been reporting on the former president and his business for years, says that that is not true.
“A review of old emails and notes, some of which the attorney general’s office does not possess, show that Weisselberg absolutely thought about Trump’s apartment—and played a key role in trying to convince Forbes over the course of several years that it was worth more than it really was,” he writes.
“Given the fact that these discussions continued for years, and that Weisselberg took a very detailed approach in reviewing Trump’s assets with Forbes, it defies all logic to think he truly believes what he is now saying in court.”
Alexander then gives a detailed breakdown of communications about the size of the penthouse between journalists at Forbes and Weisselberg beginning in 2009, culminating in the publication in 2017 exposing the lie about the square footage.
The company then changed the size of the penthouse on internal documents.
Weisselberg was demoted after being criminally charged in a separate tax case in 2021 and left the Trump Organization in January when was sentenced to five months in jail.
Full story: White House slams ‘unhinged’ Trump for calling Hezbollah ‘very smart’
Thursday 12 October 2023 17:30 , Oliver O'Connell
The White House has condemned former president Donald Trump for calling the Lebanese militant group Hezbollah “very smart” in remarks on Thursday night in Florida.
His comments came less than a week after militant group Hamas launched a massive attack on Israel from the Gaza Strip.
White House Deputy Press Secretary Andrew Bates said in a statement that, although the Biden administration doesn’t typically comment on the 2024 presidential race, Mr Trump’s remarks were “dangerous and unhinged”.
“It’s completely lost on us why any American would ever praise an Iran-backed terrorist organization as ‘smart.’ Or have any objection to the United States warning terrorists not to attack Israel,” Mr Bates said.
“Especially now as Israel is fighting back against one of the worst acts of mass murder in the country’s history.”
Read more...
White House slams ‘unhinged’ Trump for calling Hezbollah ‘very smart’
Asa Hutchinson rips Trump for Israel comments
Thursday 12 October 2023 17:26 , Oliver O'Connell
“Shame on you, Donald. Your constant compliments to dictators, terrorist groups, and evil-doers are beneath the office you seek and not reflective of the American character.”
Asa Hutchinson
🚨GOP Presidential candidate Asa Hutchinson rips Donald Trump for his attacks on Israel and praise of Hezbollah:
"Shame on you, Donald. Your constant compliments to dictators, terrorist groups, and evil-doers are beneath the office you seek and not reflective of the American…— Republicans against Trump (@RpsAgainstTrump) October 12, 2023
Trump on trial: Cross examination of Deutsche Bank risk manager continues
Thursday 12 October 2023 17:01 , Oliver O'Connell
Cross-examination of Deutsche Bank risk manager Nicholas Haigh continued this morning with Trump attorney Jesus Suarez questioning him about a 2012 loan of $107m secured by a Trump luxury hotel and condominium building in Chicago and a personal guarantee by Donald Trump.
Suarez keeps making the point that the bank would lowball its valuations of Mr Trump’s net worth and assets after its own valuations and analysis of Trump properties and lend in accordance with those figures.
The implication Suarez is trying to get across to Judge Arthur Engoron (as there is no jury) is that Deutsche Bank knew the Trump Organization figures were inflated but still did business with them and therefore was not defrauded.
“Increasing the relationship to President Trump was important to Deutsche Bank’s private wealth management business, wasn’t it?” Suarez asks.
“Yes it was one of the aims of the private wealth management business to increase its relationships with all of its clients,” Haigh says.
Deutsche Bank was by far the biggest creditor to Trump and as of May 2022 the company owed the bank approximately $340m and spent tens of millions of dollars servicing the debt, according to the New York attorney general’s office.
As Suarez continues to go through loan after loan, Judge Engoron gets bored and says this examination is redundant and obvious, and the document says what it says.
“We can all read,” he says.
Returning to evidence heard yesterday, Suarez points to the reasoning the bank gives for extending credit to Trump other than his alleged net worth — his experience as a developer, hi relationship with the bank etc.
He goes on to note that there were no issues with repayments or refinancing, and Judge Engoron says that that is not in dispute and points to his September summary judgment finding the defendants did defraud lenders but everything was paid on time.
Read Judge Engoron’s judgement here:
Donald Trump defrauded banks and insurers by grossly inflating assets, judge rules
ICYMI: Laura Ingraham uses Hamas terror attack to argue charges should be dropped against Trump
Thursday 12 October 2023 16:45 , Mike Bedigan
Fox News anchor Laura Ingraham has used the Biden administration’s response to the ongoing conflict between Hamas and Israel to argue that charges should be dropped against Donald Trump.
Reacting to remarks made by Mr Biden on the current state of affairs in the Middle-East, the right-wing anchor called for a “prosecutorial ceasefire” on the former president.
It comes as Mr Biden announced on Tuesday that at least 14 American civilians had been killed in the brutal attacks on Israel, condemning the “unadulterated evil” unleashed by Hamas.
At Romney-Ryan donor summit, disaffected Republicans seek alternatives to Trump
Thursday 12 October 2023 16:16 , Oliver O'Connell
The last Republicans to top a presidential ticket before Donald Trump’s takeover of the GOP are still holding out hope that a more palatable alternative to the ex-president will present itself before nominating contests for next year’s election are complete.
On Tuesday, Utah Senator Mitt Romney and former Speaker of the House Paul Ryan convened a high-level confab in Park City, Utah to discuss foreign policy, technology and business matters at this year’s edition of the annual E2 summit.
Among the attendees will be four of the candidates who’ve been vying — thus far unsuccessfully — to gain traction against Mr Trump in next year’s GOP primary: ex-UN Ambassador Nikki Haley, former vice president Mike Pence, former New Jersey governor Chris Christie and North Dakota Governor Doug Burgum.
Read more...
Disaffected Republicans seek alternatives to Trump at Romney-Ryan donor summit
Trump says Netannyahy ‘unprepared’ for Hamas attack
Thursday 12 October 2023 15:45 , Oliver O'Connell
Donald Trump has criticised his former ally Benjamin Netanyahu and called the Lebanese militant group Hezbollah “smart” as the Israel-Palestinian conflict reached its worst point in 50 years.
The former US president and the frontrunner for the 2024 Republican presidential nomination told Fox News that Israel prime minister Netanyahu failed to prepare against Hamas’ deadliest offensive and was caught unprepared.
“He has been hurt very badly because of what’s happened here,” Mr Trump said of Mr Netanyahu on Wednesday night. “He was not prepared. He was not prepared and Israel was not prepared.”
Shweta Sharma reports.
Trump criticises former ally Netanyahu as unprepared for Hamas attack on Israel
Trump slammed by White House and DeSantis for calling Hezbollah ‘very smart’
Thursday 12 October 2023 15:26 , Oliver O'Connell
The White House has condemned former president Donald Trump for calling Hezbollah, the Lebanese militant group, as “very smart” in remarks on Thursday night in Florida.
Deputy press secretary Andrew Bates said in a statement that although the administration doesn’t typically comment on the 2024 presidential race, Trump’s remarks were “dangerous and unhinged”.
“It’s completely lost on us why any American would ever praise an Iran-backed terrorist organization as ‘smart.’ Or have any objection to the United States warning terrorists not to attack Israel,” Mr Bates said. “Especially now as Israel is fighting back against one of the worst acts of mass murder in the country’s history.”
“This is a time for all of us to stand shoulder to shoulder with Israel against ‘unadulterated evil,’” he added.
“That’s what the President is doing as commander in chief.”
White House torches Donald Trump’s new comments on Israel & Hezbollah.
“Statements like this are dangerous and unhinged. It’s completely lost on us why any American would ever praise an Iran-backed terrorist organization as ‘smart,’” says White House spokesman @AndrewJBates46. https://t.co/rf7dQfF9pk pic.twitter.com/wWknRp8DK6— Sahil Kapur (@sahilkapur) October 12, 2023
Mr Trump’s remarks were also slammed by GOP presidential rival Florida Governor Ron DeSantis, who said: “Terrorists have murdered at least 1,200 Israelis and 22 Americans and are holding more hostage, so it is absurd that anyone, much less someone running for President, would choose now to attack our friend and ally, Israel, much less praise Hezbollah terrorists as ‘very smart’.
“As President, I will stand with Israel and treat terrorists like the scum that they are.”
You can see the former president’s remarks below:
Terrorists have murdered at least 1,200 Israelis and 22 Americans and are holding more hostage, so it is absurd that anyone, much less someone running for President, would choose now to attack our friend and ally, Israel, much less praise Hezbollah terrorists as “very smart.”
As… pic.twitter.com/408e82OVDP— Ron DeSantis (@RonDeSantis) October 12, 2023
Trump on trial: Day Seven — New York fraud trial hears from Deutsche Bank risk manager
Thursday 12 October 2023 15:08 , Oliver O'Connell
Nicholas Haigh testified on day seven of Donald Trump’s civil trial for fraud brought against him, his sons, associates, and his real estate company by New York Attorney General Letitia James. He was questioned by Kevin Wallace of the NY AG’s office.
Mr Haigh was head of risk management at Deutsche Bank from 2008 to 2018 and dealt with high-net-worth individuals. He had the final say over whether to extend credit to such clients.
He described the factors the bank took into account when making decisions on extending loans. Specifically, collateral, as in assets, and how the bank decided whether or not it was enough to justify lending to the owner.
They would consider how liquid an asset was and whether there was a deep market for it or whether there was only a small pool of specialised buyers — for example, in a default the bank would not necessarily want to end up in possession of a difficult to sell asset such as a golf club.
Mr Haigh explained that this shows the importance of a personal guarantee for any debt from Mr Trump.
He gave the example of a 2011 loan from Deutsche Bank to the Trump Organization with collateral on the debt coming in the form of the Trump National Doral Club in Miami as well as a full unconditional guarantee by Donald Trump.
The bank noted that Trump bought the course for $150m and was looking to invest another $50m in it. Mr Haigh notes that the collateral was not typical as: “Golf resorts are relatively uncommon compared to other types of commercial real estate and the number of buyers ... are limited.”
Therefore the personal guarantee from Mr Trump was important and a big factor in deciding whether to extend the loan.
"It was a way of the bank getting repaid that did not rely on the collateral,” Mr Haigh said, adding that the bank would not make a loan only ecured by collateral without a strong personal guarantee.
“Given that this was unusual collateral, a golf resort and spa, we would not want to foreclose on that collateral.”
A loan document shown to the court revealed Mr Trump reported a net worth of $4.26bn at the time, but Deutsche Bank made a conservative estimate that it was more like $2.3bn.
The attorney general’s case says that between 2011 and 2021, Mr Trump overstated his net worth by between $1.9bn and $3.6bn in the statements of financial condition.
Asked what he thought of the financial statements provided by Donald Trump and the Trump Organization, Mr Haigh said: “I assumed that the representations of value of assets and liabilities were broadly accurate.”
The court was then taken through a list of the “trophy properties” of the Trump empire — those deemed most high profile and lucrative — and their values, including Trump Tower and 40 Wall Street, which were valued by the company at $490m and $524m respectively.
Deutsche Bank believed they were worth less, though low-balled assets in general in case of a downturn, the court heard.
Mr Haigh reiterated the importance of a personal guarantee from a borrower for a loan from Deutsche Bank.
“So there’s a given that there would be a guarantee in the first place because [Deutsche Bank] wealth management did not do business without personal guarantees,” Haigh said.
“And the strength of that guarantee will be reflected in the pricing of the loan, also in the terms of the loan, including its size," he added.
Another example was drawn from loan relating to 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 again also a personal guarantee from Mr Trump.
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 times
He 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 her case against Mr Trump that due to the overstatement of Mr Trump’s net worth between 2011 and 2021, his actual net worth at the time was between $812m and $2.2bn.
When he applied for the DC hotel loan, Ms James’s office believed his net worth was $1.4bn. Therefore he was in breach of the covenants from day one.
The Trump legal team disputes this figure and argued 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.
During cross-examination, Trump attorney Jesus Suarez asked about the earlier mentioned $150m 2011 loan to Donald Trump concerning his Doral golf club in Florida and noted 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. $48m in cash flow)
The nature of the personal guarantee
Trump’s operating experience
The expected enhanced value of the Doral golf course
It was also noted that two bank loan officers visited the Trump Organization offices to review financial statements as part of the process.
In another part of the document reviewed by the court, Mr Trump listed the total value of this real estate portfolio as $3.29bn. Deutsche Bank knocked this down to $2.04bn with $302m in debt.
Haigh confirmed 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.
Cross-examination of Mr Haigh will continue today before former Trump Organization CFO Allen Weisselberg returns to continue his direct examination.
Trump on trial: Coming up in court today in New York and Florida
Thursday 12 October 2023 14:45 , Oliver O'Connell
In New York, Trump’s legal team prepares to begin day eight of his civil fraud trial in Lower Manhattan. They will continue to cross-examine former Deutsche Bank risk manager Nicholas Haigh.
The prosecution has argued through Mr Haigh’s testimony that the Trump Organization duped financial institutions such as Deutsche Bank with false accounts of Mr Trump’s net worth and the value of his trophy properties.
Mr Trump’s defence team has been casting doubt on this by showing that Deutsche Bank always gave a downward adjustment to his stated worth. Was this an admission they were aware of the exaggerations, or was it their own conservative approach to the real estate market based on internal valuations?
DAY 8: Trump’s attorneys to continue cross examining Deutsche Bank risk manager Nicholas Haigh.
Defense has been casting doubt on the idea the banks were duped by Trump’s statements of financial condition—noting the “haircut” or downward adjustments they made to his stated worth pic.twitter.com/QPYZ05yyo1— Frank G. Runyeon (@frankrunyeon) October 12, 2023
While there are no pre-trial hearings scheduled in the Fulton County, Georgia election interference case as on Tuesday and Wednesday, there will be in Florida in the federal classified documents case.
The former president’s Florida co-defendants are expected to appear in court for a hearing on potential lawyer conflicts.
Judge Aileen Cannon has requested both Carlos De Oliveira and Walt Nauta be in attendance for their respective hearings at 1pm and 3 pm ET to examine any potential conflicts involving a lawyer they both share.
Special counsel Jack Smith’s office has alleged a conflict because lawyer Stanley Woodward, who is representing the two men, has also represented several witnesses in the case.
Mr Trump and Nauta were indicted in June in connection with the former president's alleged willful retention of sensitive national security information at his Mar-a-Lago resort.
Mr De Oliveira was added as a co-defendant in a superseding indictment in late July related to alleged obstruction efforts when investigators sought out the documents.
All three have pleaded not guilty to all charges. The trial is currently scheduled to begin in May 2024.
Trump appears to blame ‘hummus’ for attacks on Israel
Thursday 12 October 2023 14:32 , Martha McHardy
Donald Trump is being mocked for appearing to blame “hummus” for the attacks in Israel over the weekend.
At a rally in Cedar Rapids, Iowa, Mr Trump mispronounced the name of the terrorist group Hamas several times, appearing to refer to it as “hummus”.
A clip of the speech went viral on social media and the former president was also mocked by TV host Jimmy Kimmel.
In the opening monologue of his show, Mr Kimmel joked that Mr Trump’s speech displayed the “deep well of insight he has into this ongoing conflict in the Middle East”.
“Could you imagine anyone else in the world doing anything even remotely like that?” Mr Kimmel asked.
Who is the Trump family member accused of withholding information from Jan 6 case?
Thursday 12 October 2023 14:00 , Oliver O'Connell
In a new motion filed by Special Counsel Jack Smith in the January 6 case against Donald Trump, the prosecutor accused a “a family member of the defendant” of withholding information.
The Tuesday filing states that during the course of the government’s investigation, “at least 25 witnesses withheld information, communications, and documents based on assertions of the attorney-client privilege under circumstances where the privilege holder appears to be the defendant or his 2020 presidential campaign.”
“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 said.
However, Mr Smith never named the Trump family member.
Kelly Rissman reports...
Mystery Trump family member accused of withholding information from Jan 6 case
