Former President Donald Trump is back in his hometown today for yet another legal appearance, but this one doesn’t involve adult film stars or felony indictments.
Perhaps because of that, the case hasn’t drawn nearly as much media attention as Trump’s 34-count indictment, brought last week by Manhattan District Attorney Alvin Bragg. But the civil lawsuit against the former president is still legally perilous and, like the Bragg case, involves allegations of fraud.
Trump is being deposed by state Attorney General Letitia James as part of a civil lawsuit against himself, his companies, two company executives and three of his adult children — Ivanka, Donald Jr. and Eric — that accuses them of systematically falsifying Trump’s balance sheets from 2011 through 2021, helping them reap more than $250 million in benefits that James is now seeking to force them to repay.
Along with the steep financial damages, the suit aims to impose business sanctions on the former president and the Trump Organization, including a five-year ban on completing any real estate transactions in New York or securing loans from New York-chartered banks. James is also looking to permanently prohibit Trump and his children from serving as officers or directors of any New York-based business.
The suit accuses Trump, his children and two Trump Organization employees — former Chief Financial Officer Allen Weisselberg and controller Jeffrey McConney — of inflating Trump’s “statements of financial condition” by falsely claiming dozens of his properties were worth more than their actual value.
Among the holdings cited in the lawsuit are some of Trump's signature assets, including his Trump Tower residence in Midtown, his Mar-a-Lago Club in Florida, the Seven Springs estate in Westchester County and his Trump National Golf Clubs.
In one example, James highlighted Trump’s property at 40 Wall St. According to the suit, the Trump Organization received appraisals in 2010 and 2012 valuing the property at $200 million and $220 million, respectively.
But on the balance sheet in 2011, Trump listed 40 Wall St.’s value at $524 million and $527 million in 2012. His company allegedly used an inflated value to help get better terms on a loan from Ladder Capital Finance, where Weisselberg’s son worked, according to the lawsuit.
This is the second deposition in the case — during the previous one last year, the former president accused James of conducting a “political witch hunt” and invoked his Fifth Amendment right against self-incrimination hundreds of times over the course of several hours.
There are a few similarities with last week’s spectacle, though. Both cases were sparked by testimony from Michael Cohen, Trump's former “fixer.” Both also involve accusations of Trump lying about his business dealings. And of course, both were the subject of Trump’s ire on his own “Truth Social” platform.
“I will be heading downtown to meet with a Racist who leaked that I would be there at 9:30 a.m.” Trump posted on Thursday morning. “The leak makes it much more difficult for the Police and Secret Service to do their job. This civil case is ridiculous, just like all of the other Election Interference cases being brought against me.”
Unlike last week’s spectacle, only a handful of reporters showed up for Thursday’s deposition.
The attorney general’s office did not immediately respond to a request for comment.
