Trump Desperately Tries to Use “Worthless” Defense in Fraud Trial
Donald Trump tried Monday to defend his business practices in New York with a so-called “worthless clause”—despite the judge having already deemed this argument exactly that.The former president, who has been accused of business fraud by the New York attorney general, has previously tried to argue that the Trump Organization’s financial documents were not the least bit fraudulent. He insisted that even if they were, he couldn’t be held responsible because it was up to the lenders and insurers to fact-check that.Trump doubled down on that claim when he took the stand Monday. When shown his company’s financial statements, Trump pointed to a disclaimer on the document.“We would call it a worthless statement clause,” he said. “They were not really documents that banks paid much attention to.”There’s a small flaw in Trump’s defense: Presiding Judge Arthur Engoron has already dismissed it.“Defendants’ reliance on these ‘worthless’ disclaimers is worthless,” Engoron wrote in a pretrial ruling dated September 26. “The ‘worthless clause’ does not say what defendants say it says, does not rise to the level of an enforceable disclaimer, and cannot be used to insulate fraud as to facts peculiarly within defendants’ knowledge, even vis-à-vis sophisticated recipients.”The current trial is really to set damages in the case. Engoron has already determined that Trump committed fraud, and he has ordered the effective dissolution of the Trump Organization and other Trump businesses in New York.Attorney General Letitia James is seeking $250 million in damages. She has accused Trump and his associates of gaining more than $100 million by fraudulently inflating the value of their real estate assets.James’s lawsuit alleges that Trump claimed his Trump Tower apartment in Manhattan was three times its actual size and worth $327 million. No New York City apartment has ever sold for that much. He also valued Mar-a-Lago at $739 million, about 10 times its actual worth.
Donald Trump tried Monday to defend his business practices in New York with a so-called “worthless clause”—despite the judge having already deemed this argument exactly that.
The former president, who has been accused of business fraud by the New York attorney general, has previously tried to argue that the Trump Organization’s financial documents were not the least bit fraudulent. He insisted that even if they were, he couldn’t be held responsible because it was up to the lenders and insurers to fact-check that.
Trump doubled down on that claim when he took the stand Monday. When shown his company’s financial statements, Trump pointed to a disclaimer on the document.
“We would call it a worthless statement clause,” he said. “They were not really documents that banks paid much attention to.”
There’s a small flaw in Trump’s defense: Presiding Judge Arthur Engoron has already dismissed it.
“Defendants’ reliance on these ‘worthless’ disclaimers is worthless,” Engoron wrote in a pretrial ruling dated September 26.
“The ‘worthless clause’ does not say what defendants say it says, does not rise to the level of an enforceable disclaimer, and cannot be used to insulate fraud as to facts peculiarly within defendants’ knowledge, even vis-à-vis sophisticated recipients.”
The current trial is really to set damages in the case. Engoron has already determined that Trump committed fraud, and he has ordered the effective dissolution of the Trump Organization and other Trump businesses in New York.
Attorney General Letitia James is seeking $250 million in damages. She has accused Trump and his associates of gaining more than $100 million by fraudulently inflating the value of their real estate assets.
James’s lawsuit alleges that Trump claimed his Trump Tower apartment in Manhattan was three times its actual size and worth $327 million. No New York City apartment has ever sold for that much. He also valued Mar-a-Lago at $739 million, about 10 times its actual worth.
