Donald Trump is set to appear in a Manhattan courtroom on Monday for a civil fraud case with a $250 million at stake. This legal battle poses a substantial threat to his expansive real estate empire and the business reputation that played a pivotal role in his unconventional journey to the White House.
Furthermore, this lawsuit has the potential to expose the leading Republican presidential nominee, potentially causing a significant setback to the carefully crafted image and identity he has developed over several decades.
The presiding judge in this case has already ruled in favor of New York Attorney General Letitia James, finding Donald Trump and his adult sons liable for fraud. This decision has resulted in the revocation of the Trump Organization's business certificates. Letitia James has accused the former president and his business associates of artificially inflating the value of his net worth and property holdings in financial documents used to secure loans. She is seeking $250 million in compensatory damages and aims to enforce a five-year prohibition on the Trump family serving as officers in any New York-based business and engaging in business transactions.
While Donald Trump is facing a total of 91 criminal charges from four separate indictments, including two related to his attempts to overturn the 2020 presidential election, it is the civil lawsuit filed by Letitia James that seems to weigh most heavily on his mind.
Barbara Perry, a professor specializing in presidential studies at the University of Virginia's Miller Center and co-director of the Presidential Oral History Program, emphasizes the significance of the case. She highlights its importance for those who care about the constitutional system and democratic republic. However, for Donald Trump, the lawsuit hits closer to home and carries significant personal implications.
The potential loss of their business licenses in New York, coupled with fines related to their liability, would be a severe blow to the Trump family. This would not only impact their official capacity to conduct business in New York, a cornerstone of their commercial endeavors, but it could also lead to the sale of their assets, regardless of their value.
In addition to the unusual scenario of a former president testifying under oath, the trial draws attention for the constraints it places on Trump's characteristic communication style, marked by bombast and a reliance on misinformation.
Barbara Perry notes that while Trump has managed to navigate charges in the political realm, the legal arena presents different challenges. The trial has already subjected him to fines for violating a gag order, and he has witnessed his sons, Donald Trump Jr. and Eric Trump, giving testimony. Ivanka Trump, his daughter, is also scheduled to provide testimony in the days ahead.
Throughout the proceedings, Donald Trump has turned to his social media platform, TruthSocial, to defend his business dealings and claim victimization due to political persecution. Barbara Perry underscores that Trump's ability to sway public opinion through demagoguery may not yield the same results in this legal context, as the judge maintains a firm stance against tolerating his behavior.
As the trial unfolds, both of Trump's adult sons have offered similar testimonies, asserting their limited involvement in the Trump Organization's financial matters. They contend that they simply endorsed financial documents prepared by other experts within the organization, including former CFO Allen Weisselberg and accountant Donald Bender. Both held executive vice president positions after their father's election. Eric Trump, who had a more hands-on role in the company, provided more detailed testimony, occasionally adopting a defensive tone when responding to prosecutors' questions. During his testimony, he eventually admitted to having knowledge of the Trump Organization's financial statements dating back to 2013, despite initially denying such awareness.
The trial is set to continue on Monday, with Donald Trump himself taking the stand.