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Donald Trump Loses Bid to Halt New York Civil Fraud Trial

Published on October 10, 2023

Donald Trump's civil fraud trial is set to proceed next week, as the former U.S. president faced a setback in his attempt to halt the proceedings. On Friday, an appeals court judge rejected Trump's bid to pause the trial while he fights a pretrial ruling that could potentially strip him of iconic properties like Trump Tower.

The decision, which followed an emergency hearing, came after the trial had been underway for five days. Trump had personally attended the courthouse for the initial three days, where he observed testimonies and voiced his grievances to the media, characterizing the case as a "witch hunt and a disgrace."

Trump's legal team had requested the state's intermediate appellate court to suspend the trial and prevent Judge Arthur Engoron from enforcing a ruling he issued the previous week. This ruling found that Trump had committed years of fraud in the construction of his real estate empire by inflating the values of assets in his annual financial statements.

Trump vehemently denied any wrongdoing throughout the proceedings. Engoron's ruling also had the effect of revoking Trump's business licenses and placing a court-appointed receiver in control of his companies.

Trump's lawyer, Christopher Kise, argued that the ruling set a dangerous precedent, causing defendants in other cases to fear that their companies and properties might be seized without recourse. Kise contended that the decision could have adverse consequences for Trump, other defendants, and potentially up to 1,000 employees.

The state's Deputy Solicitor General, Judy Vale, informed the appeals judge that the Attorney General's office had offered to maintain the status of business licenses until after the trial. Kise acknowledged the offer but expressed concerns about Engoron's willingness to accept it.

"We could have resolved some of this, and we're still happy to do so," Vale said, describing the defense's arguments for a delay as "completely meritless." She reassured that the immediate seizure of Trump's properties was not imminent.

Mounting the trial had been an immense undertaking, Vale emphasized, involving extensive court planning, heightened security for Trump's presence, and special accommodations for press and public access.

In response, Kise issued a statement expressing satisfaction with the appeals court's decision, stating, "We are very pleased the First Department upheld New York law and put a halt to any cancellation of business certificates, receivers, or dissolution. The trial court's attempt to reach issues, entities, and assets beyond the scope of this case has been suspended."

New York Attorney General Letitia James countered Trump's interpretation, asserting that Trump's side was "falsely claiming victory." She emphasized that the trial would proceed as scheduled and highlighted that Trump's attempts to delay it had been repeatedly rejected. James stated, "Yet another court denied his efforts to evade justice for his years of fraud. But Donald Trump lives in a fantasy world where money grows on trees and facts don't matter."