Former President Donald Trump’s former lawyer Michael Cohen arrives for the criminal trial of former lawyer Michael Avenatti at a federal courthouse in Manhattan, New York City, on January 24, 2022.
Gina Moon | Reuters
Donald Trump’s former personal lawyer and fixer Michael Cohen testified Tuesday that the former president directed Trump to falsely inflate the value of his assets to make his net worth appear higher.
Trump looked at his total assets in his financial statements and said, “I’m not really worth $4.5 billion. I’m actually worth more like $6 billion.” Mr. Cohen argued in the $1 million fraud trial.
Mr. Cohen then worked with another Trump Organization executive to “reverse engineer” the higher value of the assets listed in these financial statements in order to achieve “the numbers he told us.” He testified that he was working on something.
He testified in close proximity to President Trump, who was listening in a Manhattan Supreme Court courtroom. Mr. Cohen, who once said he would “take a bullet” for Mr. Trump, is now the star witness in multiple civil and criminal cases against Mr. Trump’s former boss.
Before appearing in court, Cohen told CNBC that Trump’s presence “doesn’t affect me one way or the other.”
President Trump may be hoping otherwise. Before entering the courtroom, he accused Cohen of being a “proven liar” who was “trying to get a better deal for himself.”
Trump continued to attack Cohen after the trial was adjourned for the day, calling his former aide a “felony” and a “disgrace” who is “completely discredited.”
Trump said he would return to court Wednesday as Cohen continues to testify.
Cohen told reporters outside the courtroom Tuesday morning that his participation in the trial was not due to a conflict with President Trump. “This is about accountability, plain and simple,” he said.
Indeed, Cohen’s appearance not only opens up the possibility of a clash between the two men, who have had bitter public feuds during the Trump presidency. Mr. Cohen testified before Congress in 2019 about his former boss’s business practices, which prompted New York Attorney General Letitia James to launch the investigation in the first place.
Lawsuits that emerged from the investigation allege that Trump, his two adult sons, the Trump Organization, and top executives reduced the value of real estate and other assets over a period of more than a decade in order to obtain tax breaks and better loan terms. He is accused of fraudulently raising the price.
Mr. James is seeking about $250 million in damages and wants Mr. Trump and his co-defendants barred from doing business in New York.
Judge Arthur Engoron, who is scheduled to deliver the verdict in a non-jury trial, has already found Trump responsible for the fraud and ordered the defendant’s New York business certificate revoked. The trial is scheduled to last until late December, when James’ remaining six claims will be resolved.
Mr. Cohen speaks
Shortly after taking the stand, Cohen was prompted to detail the crimes he pleaded guilty to in 2018, including campaign finance violations, tax evasion and lying to Congress. Cohen was sentenced to three years in prison, but he served part of that term under home confinement.
Mr. Cohen had previously accused Mr. Trump of directing some of these crimes. He testified Tuesday that his lies to Congress about plans to acquire real estate in Moscow were done “at the direction and benefit of Mr. Trump,” according to a hearing transcript from NBC News.
Cohen said he began working for President Trump in 2007 as vice president and special counsel.
“I reported to Donald Trump, and only Donald Trump,” Cohen said, describing his job as akin to that of a personal attorney.
Mr. Cohen was asked to examine a document purporting to be Mr. Trump’s June 2011 financial statement. Mr. Cohen testified that he was asked to increase the total assets listed in Mr. Trump’s financial statements based on a number chosen by Mr. Trump “arbitrarily.”
Mr. Cohen claimed that he and former Trump Organization Chief Financial Officer Allen Weisselberg, another defendant in the case, “reverse engineered the values of various asset classes to arrive at the numbers Mr. Trump wanted.” He said he was primarily responsible for the work to be done.
During a brief pause in questioning, Mr. Cohen appeared to turn and look directly at Mr. Trump.
“What a reunion,” Cohen told reporters during a break in proceedings.
Trump, who was in court only on certain days during the trial, said during a break that Cohen’s record was “terrible.” He added: “We are not concerned at all about his testimony.”
“He’s not a reliable witness,” Trump said, adding, “So far he hasn’t said anything important.”
Cohen delved further after the lunch break.
When President Trump is shown his financial statements, “he will look at his total assets and say, ‘I’m not really worth $4.5 billion. I’m actually worth more like $6 billion,'” Cohen said. He testified.
“He’ll ask Allen and I to go back to the office and come back with a goal,” Cohen said.
He said he would read articles and search online to find comparable apartments with supposedly higher prices per square foot and then apply those inflated numbers to the units in Trump’s properties.
Trump’s trial
Mr. Trump was in court for two days last week when Mr. Cohen was first scheduled to be called to testify. However, according to Cohen, his appearance was delayed because he had a chronic illness.
Trump, a front-runner for the 2024 Republican presidential nomination, has denied all wrongdoing in the case. He has repeatedly criticized James, the judge and the court in general in court and on social media, claiming he is the victim of a politically motivated witch hunt.
Engoron imposed a narrow gag order on Trump earlier this month after the president attacked a judge’s law clerk. A judge last week accused Trump of violating the gag order, fined him $5,000 and warned that repeated violations could result in jail time.
The gag order prohibits President Trump from speaking publicly about the judicial staff. However, at this time, attacking others involved in the case, including Cohen, is not prohibited.
of deprived The lawyer is also a leading witness in the Manhattan district attorney’s ongoing criminal case accusing President Trump of falsifying business records related to hush-money payments made just before the 2016 election.
Cohen pleaded guilty in 2018 to arranging secret payments to two women: porn actress Stormy Daniels and Playboy model Karen McDougall. They allege that Trump had an affair several years ago. President Trump has denied the secret meeting and maintained his innocence in a lawsuit filed by Manhattan District Attorney Alvin Bragg.
Cohen was executed by 3 years These payments were made at the direction of President Trump, who is trying to influence the 2016 presidential election and is in prison for other crimes, including tax evasion.
He was placed on home confinement after being in prison for more than a year due to coronavirus-related prison policies. However, he refused an agreement not to publish his book during the remainder of his sentence, so he was detained again for several weeks. A federal judge ruled that the condition was retaliatory.
Cohen’s revealing memoir, “Disloyal,” was published in September 2020.
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