reSee.it - Tweets Saved By @lawofruby

@lawofruby - Lisa Rubin

I keep thinking about Judge Engoron's last-minute question to the New York Attorney General's lawyer yesterday: "How would you compare the fraud you are alleging to the Madoff Ponzi Scheme?" 1/

@lawofruby - Lisa Rubin

Allotted just a minute to respond, he said what many of us might say: "It's smaller in that there is a smaller amount of people affected, smaller dollar number. But I still think it's significant given the dollar numbers involved & the fact that it involves critical regulated industry." 2/

@lawofruby - Lisa Rubin

And he added that Trump & the other defendants used the money they procured to build properties of which they are "very proud," but the lies they told to a bank to "get that much revenue" remain "a very significant issue." 3/

@lawofruby - Lisa Rubin

But there's another major difference--and it goes to the heart of when injunctive relief (like the lifetime ban they seek on Trump's participation in the real estate industry) is justified. 4/

@lawofruby - Lisa Rubin

According to the AG's office, permanent injunctive relief is appropriate where there is a reasonable likelihood that the violation will continue. 5/

@lawofruby - Lisa Rubin

And under a case the AG cited, one factor in determining that likelihood is "whether the defendant continues to maintain that his past conduct is blameless." 6/

@lawofruby - Lisa Rubin

Bernie Madoff pled guilty in federal court, and at his plea hearing, he made a lengthy statement detailing his criminal conduct, how long it went on, and the methods he used to implement and conceal his Ponzi scheme. 7/

@lawofruby - Lisa Rubin

And he said, among other things, "I cannot adequately express how sorry I am for what I have done." 8/

@lawofruby - Lisa Rubin

It's true that Madoff was facing life (and death) in prison, and at least on the allegations advanced in the AG's case, Trump is not. And I certainly don't and can't know whether Madoff's contrition was genuine or manufactured to reduce his sentence. 9/

@lawofruby - Lisa Rubin

But I am struck by the differences between these families. In one case, the father confessed, and his sons turned him in. 10/ https://www.cbsnews.com/news/sons-called-in-fbi-to-arrest-bernie-madoff/

Sons called in FBI to arrest Bernie Madoff Early one morning in 2008, the FBI showed up to arrest Bernie Madoff. He'd been turned in by his own sons, and their mother only later learned who had made the call. cbsnews.com

@lawofruby - Lisa Rubin

And in the other, there is no daylight between the generations of men; the patriarch and his progeny alike have zero regrets. Worse, given an opportunity to address the court, Trump railroaded the same judge he's been publicly attacking (and endangering) for months. 11/

@lawofruby - Lisa Rubin

Even Madoff confessed to his scheme, proclaiming that he was "actually grateful for this first opportunity to publicly speak about my crimes, for which I am so deeply sorry and ashamed" and that he "accept[ed] responsibility for my crimes." 12/ https://www.npr.org/templates/story/story.php?storyId=101816470#:~:text=I%20am%20painfully%20aware%20that,for%20what%20I%20have%20done.

Text Of Bernard Madoff's Court Statement Bernard Madoff delivered a prepared plea allocution statement Thursday in U.S. District Court in New York. npr.org

@lawofruby - Lisa Rubin

And still, Trump -- facing 91 felony counts in addition to multiple significant civil suits -- cannot acknowledge a shred of wrongdoing. "This is no fraud," he insisted. "This is a fraud on me." Read it for yourself here: https://storage.courtlistener.com/recap/gov.uscourts.nysd.543790/gov.uscourts.nysd.543790.256.2.pdf FIN.

Exhibit B - Excerpt of Closing Arguments in New York v. Trump – #256, Att. #2 in Carroll v. Trump (S.D.N.Y., 1:20-cv-07311) – CourtListener.com LETTER addressed to Judge Lewis A. Kaplan from Roberta A. Kaplan dated January 12, 2024 re: Defendant's Possible Trial Testimony. Document filed by E. Jean Carroll. (Attachments: # 1 Exhibit A - Correspondence between Justice Engoron and Defense Counsel, # 2 Exhibit B - Excerpt of Closing Arguments in New York v. Trump, # 3 Exhibit C - Proposed Curative Instruction re Collateral Estoppel, # 4 Exhibit D - Proposed Curative Instruction re Prior Jury Determination).(Kaplan, Roberta) (Entered: 01/12/2024) courtlistener.com

@lawofruby - Lisa Rubin

Good morning from the New York attorney general’s civil fraud trial against many defendants, including today’s witness, former President Donald Trump. I’ll be inside the courtroom again along with @msnbc and @nbcnews colleagues to bring you all the developments live. https://t.co/LvxER3O3Q6

@lawofruby - Lisa Rubin

The attorney general’s team has just entered, with a smiling Kevin Wallace (who will be leading the examination) bringing up the rear. The gallery is replete with journalists, including my colleague and veteran court watcher @adamreisstv.

@lawofruby - Lisa Rubin

@adamreisstv Still missing? The defense, their client, and Attorney General Tish James.

@lawofruby - Lisa Rubin

@adamreisstv As I sit in the courtroom, one of Chris Kise’s colleagues just handed the principal law clerks an enormous stack of binders. Usually, that would signal that a party had filed a motion with voluminous exhibits. Let’s see if that’s what it turns out to be….

@lawofruby - Lisa Rubin

@adamreisstv And now, AG Tish James has entered, taking her customary first-row seat on the plaintiffs’ side of the courtroom. Before entering, she gave a short statement outside where she reminded media that Trump can largely say whatever he wants but numbers and facts don’t lie.

@lawofruby - Lisa Rubin

@adamreisstv Also seen in the courtroom? Jeffrey Levine, who with @Edanyaperry, represents @MichaelCohen212. Still no sign of Trump or his lawyers, although they are reportedly in the courthouse.

@lawofruby - Lisa Rubin

@adamreisstv @Edanyaperry @MichaelCohen212 And in walk Chris Kise, Trump, Alina Habba, and Alan Garten, and others, including Trump defense lawyers Todd Blanche and Susan Necheles plus campaign spox Steven Cheung and erstwhile strategist Jason Miller.

@lawofruby - Lisa Rubin

@adamreisstv @Edanyaperry @MichaelCohen212 The pool photographers — a larger group than usual — have now shot stills of the defense table and have been excused.

@lawofruby - Lisa Rubin

NEW: Don Jr. is off the stand, having engaged in a mostly pleasant and dull back and forth with the AG’s office that was no less damning. And now, we await his taller, younger co-defendant and brother, Eric, who just strode in.

@lawofruby - Lisa Rubin

“Does everybody have their makeup on?” Engoron jokes. And now the pool photographers enter for their shots of Eric.

@lawofruby - Lisa Rubin

Andrew Amer of the AG’s office is now examining Eric, but before he started, he asked that any lengthy disputes about evidence should happen outside the witness’s earshot and that Eric should be excused if that happened.

@lawofruby - Lisa Rubin

Eric is, as expected, softer-spoken and has to be prodded by Engoron to speak into the mike. He affirms he reported to his father between 2014, when he became an EVP, and January 2017 and confirms he did not report to anyone else.

@lawofruby - Lisa Rubin

Weisselberg was at the same level as the three Trump children during his period, Eric confirms, and McConney was “directly under Mr. Weisselberg.”

@lawofruby - Lisa Rubin

But between Jan. 2017 and Jan. 2021, fair to say you ran the day-to-day operations of the Trump Org., alongside Weisselberg and Jr.? Yes, Eric says.

@lawofruby - Lisa Rubin

Eric did not report to anyone during this period, he testifies. And his father relied on him and the two trustees — Weisselberg and his brother — to run the business, although he took directions from his dad if and when they were given.

@lawofruby - Lisa Rubin

“Some of the best years of my life,” Eric says of his living on the Seven Springs property, for which he later had responsibility beginning in 2012.

@lawofruby - Lisa Rubin

Eric too says, “I never had anything to do with the statement of financial condition … People asked me questions all the time, but I never worked on the statement of financial condition.”

@lawofruby - Lisa Rubin

Asked whether he even understood his dad *had* a statement of financial condition as of 2012, Eric says, “Not that I recall.” He clarifies, “I don’t know what I knew at the time.”

@lawofruby - Lisa Rubin

(This matters because in his supporting data worksheets underlying the statements of financial condition, McConney cited phone conversations with Eric in 2012 and 2013 as the basis for the valuation of Seven Springs.)

@lawofruby - Lisa Rubin

Amer moves on to discuss Trump’s Charlotte, NC golf club, which was acquired in 2012. A board member of that club shared with Eric in Jan. 2012 a letter sent to club members on the prior day about the potential purchase of that club by the Trump Org.

@lawofruby - Lisa Rubin

Eric recalls club members had to approve the sale by a vote and were told their options included the sale of club assets to the Trump Org. That letter also states “Trump drafted a few and approved all statements related to that offer.”

@lawofruby - Lisa Rubin

Eric remembers being a key negotiator of that deal but does not recall whether he was involved in drafting or reviewing the statements made as part of the offer. He says, “It would depend on the statements.”

@lawofruby - Lisa Rubin

(The import of this line of questioning is not readily apparent to me, given that the transaction took place in 2012, but my guess is that it is designed to show Eric’s awareness and access to representations about his net worth dating back to well before the statute of limitations kick in.”)

@lawofruby - Lisa Rubin

Amer shows Eric a summary of the due diligence done by the club members about Trump’s financial condition. Eric says he can’t confirm language referring to a “financial statement prepared by a CPA firm reflecting Donald Trump’s net worth” is about the statements of financial condition.

@lawofruby - Lisa Rubin

That summary further states “the cash and cash equivalents was in the hundreds of millions. The assets in the billion of dollars were more than 10 times the liabilities on the financial statement.”

@lawofruby - Lisa Rubin

Eric does not recall whether he helped arrange for that member to review Trump’s statement of financial condition. Amer now shows him an email from the member to Eric and Weisselberg reflecting his travel to the Trump Org. to review that information.

@lawofruby - Lisa Rubin

Eric still does not recall the meeting, but doesn’t dispute it happened. Eric also told Weisselberg in a Feb. 2012 email that the deal was “on the one yard line.” Eric confirms he wanted to get it done.

@lawofruby - Lisa Rubin

Now Amer moves on to further emails between that member, Weisselberg and Eric about the member’s due diligence as to Trump’s financial condition. Eric’s response to the member reflects — despite his lack of recollection now — that he reviewed the due diligence summary.

@lawofruby - Lisa Rubin

Eric’s response shows some pique: They showed him the financials in person because of their sensitivity and that he was “bound by confidentiality.”

@lawofruby - Lisa Rubin

Eric asks in the email for the member’s assurance that the due diligence summary will not be distributed and that he would limit communications to assuring members that Trump had the financial wherewithal to make the purchase.

@lawofruby - Lisa Rubin

Eric confirms they would want to keep them confidential, “no different than any other private company in the world.” He says he wouldn’t have wanted 1200 people to have access to the financials.

@lawofruby - Lisa Rubin

Amer is asking Eric whether by 2012, he was aware that the Trump Org was using the statements of financial condition to demonstrate the company’s financial wherewithal to a third party,

@lawofruby - Lisa Rubin

Eric is steadfast: The member met with Weisselberg; “that’s not what I did at the company.”

@lawofruby - Lisa Rubin

Amer is incredulous. You had no idea you had no financials the member was looking at as part of his due diligence? That’s your testimony? Eric says yes, he knew he was looking at “financials” but he did not understand what specifically he was looking at.

@lawofruby - Lisa Rubin

“Can we at least agree that by 2012, you were aware the company had personal financials to demonstrate to third parties that the company had the financial wherewithal?”

@lawofruby - Lisa Rubin

And Eric’s answer amounts to a no: “I was not aware of the statements of financial condition, I did not work on the statements of financial condition. I have been very clear about that.”

@lawofruby - Lisa Rubin

Amer asks whether it’s true that McConney specifically represented to Eric that he needed information about the value of Seven Springs for his dad’s statements of financial condition. Eric says no. But here comes the email proof.

@lawofruby - Lisa Rubin

McConney told Eric expressly in an 8/20/13 email, in connection with a call between them reflected in the work papers, that he needed assistance with valuing Seven Springs for his father’s statement of financial condition. And McConney attached an excerpt from his supporting data spreadsheet.

@lawofruby - Lisa Rubin

So Eric now admits that by August 2013, he had seen portions of the work papers underlying the statement of financial condition and that he must have been aware of the existence of the statements of financial condition.

@lawofruby - Lisa Rubin

Looking at the spreadsheet, Eric testifies that he easily could have given McConney the facts about which portions of the parcels are to be developed/used but says the value seems to have been determined the prior year, prior to his involvement in the project.

@lawofruby - Lisa Rubin

“I think it’s established that this predated me … At least that’s not I’m reading this.” Amer explains he just wants to know whether the detail about the 7 mansions was within his knowledge at that time. Eric says yes.

@lawofruby - Lisa Rubin

Amer goes back to the email: McConney tells you that he needed your help in *valuing* Seven Springs. It’s a fact, isn’t it, you knew your father’s statement of financial condition was provided to a bank well before then, in Feb. 2012? “Not to my recollection.”

@lawofruby - Lisa Rubin

Amer then takes out a 2012 email between an employee of First National Bank of Long Island and Weisselberg that the latter forwards to Eric, along with an attached confidentiality agreement.

@lawofruby - Lisa Rubin

“The chance of my reading a confidentiality agreement that I didn’t execute is close to zero,” Eric states, even though he admits he received it and it references Donald Trump’s statement of financial condition.

@lawofruby - Lisa Rubin

Eric finally cracks a little, raising his voice in saying, “We are a major corporation. Of course we had financial statements!”

@lawofruby - Lisa Rubin

And finally, Amer gets the admission he wants: that at least by the time of his 2013 communications with McConney, Eric understood that his father had statements of financial condition with which his help was needed.

@lawofruby - Lisa Rubin

I am headed back to the office after yet another long day in court that ended with a bang, not a whimper. But what was today’s latest skirmish about Judge Engoron’s principal law clerk really about? Controlling what we, the media, say and write tonight—and depriving the AG’s team of a major dunk on Eric Trump. 1/

@lawofruby - Lisa Rubin

Let me explain. Andy Amer of the AG’s office was focused on a 2021 conference call about Trump’s statement of financial condition that one participant, Patrick Birney, testified was convened to apprise Don Jr. and Eric of a change in the valuation methodology for their golf courses. 2/

@lawofruby - Lisa Rubin

Despite Eric’s agreeing that he likes Birney very much and his inability to refute Birney’s testimony, nothing Amer showed Eric shored up any recollection of the call whatsoever. 3/

@lawofruby - Lisa Rubin

That call, however, was not only just over 2 years ago, but as Amer pointed out, took place well after the AG’s investigation was underway and nearly two years after Eric Trump gave his first of two depositions related to this case. 4/

@lawofruby - Lisa Rubin

At that first, October 2020 deposition, Eric Trump took the Fifth more than 500 times, a fact that the attorney general highlighted in a Jan. 2022 court filing. 5/ https://www.businessinsider.com/eric-trump-weisselberg-invoked-5th-amendment-rights-500-times-2022-1?amp

Eric Trump, Weisselberg invoked 5th Amendment rights more than 500 times Both Eric Trump and Allen Weisselberg sat for depositions in 2020, where they each invoked their Fifth Amendment rights over 500 times, a filing said. businessinsider.com

@lawofruby - Lisa Rubin

And that’s where Amer was headed. He was going to show that especially once Eric perceived that he was at sufficient risk that he had to plead the Fifth hundreds of times in fall 2020, his lack of recollections as to how they handled later statements of financial condition (and related valuation changes) was not credible. 6/

@lawofruby - Lisa Rubin

That’s likely where we would have ended the day but for vociferous objections from Cliff Robert & then Chris Kise, who, in supposedly trying to shut down that line of questions sideswiped the judge’s principal law clerk. 7/

@lawofruby - Lisa Rubin

Predictably, that enraged the usually droll Engoron, and we were off to the races about a potential expansion of the gag order, the legitimacy of the notes the judge and his clerk exchange, and whether Kise’s First Amendment rights trump (no pun intended) the clerk’s right to safety. 8/

@lawofruby - Lisa Rubin

Lawyers joke if the law’s not on your side, argue the facts. If the facts aren’t on your side, argue the law. And if you’ve got neither, pound the table and yell. That’s what happened today with the added factor that Trump’s team timed their outrage to strip the AG’s team of a last, devastating word today.

@lawofruby - Lisa Rubin

Don’t buy it. As Amer himself said with a grin, today was a great day for the AG’s team, even if Don Jr.’s joviality and Eric’s stinginess disguised that at times. More on why later…. FIN.

@lawofruby - Lisa Rubin

Trump accounting exec David Orowitz is still on direct & there’s one more witness before Don Jr., who might not take the stand today. But for my money, Eric’s the one to watch. Here’s why in my latest for @maddowblog: https://www.msnbc.com/rachel-maddow-show/maddowblog/don-jr-eric-trump-testimony-rcna122984

Why Eric Trump's testimony could be key in N.Y. civil fraud trial While Don Jr. continues to remake himself in his dad’s image, Eric appears most comfortable behind the scenes. But his testimony could reveal whether he’s more like his dad than we knew. msnbc.com

@lawofruby - Lisa Rubin

Orowitz is now done on direct, and the defense had no cross. But now the AG will put on today’s real star witness: Michael McCarty, their sole expert. The defense fought hard to exclude him. We’re about to find out why.

@lawofruby - Lisa Rubin

And as McCarty takes the stand, Jesus Suarez — who also crossed former Mazars partner and lead Trump outside accountant Donald Bender — is in pole position, so to speak, at the defense table.

@lawofruby - Lisa Rubin

McCarty is describing his background in finance, which includes a degree from Wharton. That’s the same school where Don Jr. took introductory accounting but learned little about GAAP, according to his own testimony, other than what the acronym stands for.

@lawofruby - Lisa Rubin

(If you’re interested in McCarty’s credentials as a banker, you can read more about him here: https://www.mmdillon.com/team/)

Team - M.M. Dillon & Co. Phone: 203.569.6823 Fax: 203.569.6883 Cell 646-286-6628 mmccarty@mmdillon.com vCard Mike was a founding partner of M.M. Dillon & Co. as an independent i ... mmdillon.com

@lawofruby - Lisa Rubin

NYAG’s Kevin Wallace is now reviewing McCarty’s experience as a litigation expert, in which “nearly all” of the cases involved credit decisions made by financial institutions. He is explaining that as a banker, he was a senior officer who had to sign off on many loans, including loans needed for real estate transactions involving high net-worth individuals.

@lawofruby - Lisa Rubin

Much has been made of Trump’s love of those who look their parts. McCarty is, in that model, straight from central casting of a starched, white-shoe banker.

@lawofruby - Lisa Rubin

McCarty says that in his banking experience, he never dealt with compilation of statements of financial condition, which he testified are unusual for use in loan transactions. That has given rise to a dispute about how broadly he can be qualified as an expert in banking & capital markets.

@lawofruby - Lisa Rubin

Engoron has qualified him, with the caveat that he will keep in mind that McCarty does not have experience with compilations of financial statements but that they are sufficiently similar, according to McCarty, that he can analyze them.