Topline
A New York judge found former President Donald Trump liable for fraudulently misstating the value of his assets on Friday—a decision that could echo through Trump’s first criminal trial next month, as Judge Arthur Engoron’s ruling last week gave credibility to ex-Trump “fixer” Michael Cohen, who will be a key witness at that case.
Key Facts
Trump was found liable for fraudulently misstating the value of his assets on financial statements in order to obtain more favorable business deals and reflect a higher net worth for himself.
Part of the state’s case against Trump was based on the testimony of Trump’s former attorney Cohen, who testified Trump directed him and ex-CFO Allen Weisselberg to inflate valuations in order to reach Trump’s arbitrary desired net worth—leading Trump and his attorneys to strongly attack Cohen’s credibility, given that the attorney previously was convicted for lying under oath.
Engoron, however, said in his ruling that he found Cohen’s testimony to be “credible”—citing “the relaxed manner in which he testified, the general plausibility of his statements” and his testimony being corroborated by other evidence—writing the judge “does not believe that pleading guilty to perjury means that you can never tell the truth.”
The judge’s assessment of Cohen’s credibility could bolster the witness and help fend off criticism as he’s expected to be a crucial part of Trump’s first criminal trial, which is based on $130,000 in “hush money payments” that Cohen made to adult film actress Stormy Daniels during Trump’s 2016 campaign to silence allegations she had an affair with Trump.
Cohen has testified that Trump directed him to pay Daniels, and the ex-president has been indicted on charges of falsifying business records based on him allegedly reimbursing Cohen for the $130,000 and concealing those payments as legal payments.
Crucial Quote
“Michael Cohen told the truth,” Engoron wrote in his ruling.
What To Watch For
Trump’s criminal case over the “hush money” payments will go to trial starting March 25. The ex-president has been charged with 34 counts of falsifying business records, which are each punishable by fines of up to $5,000 and up to four years in prison if Trump’s convicted—though experts largely believe he won’t be sentenced to prison as a first-time offender. He has pleaded not guilty to the charges.
Big Number
$354 million. That’s the approximate amount Trump was ordered to pay in the civil fraud case, which balloons to $453.5 million—and counting—when interest is included.
Chief Critic
Trump has continued to attack Cohen throughout the fraud trial, criticizing him in December as a “sleazebag and disbarred former lawyer.” The ex-president and his attorneys repeatedly tried to discredit Cohen’s testimony during the fraud trial by pointing to his former perjury plea, and unsuccessfully sought to have the case thrown out after Cohen seemed to reverse his testimony while on the stand. Cohen initially admitted to lying to Congress by telling lawmakers Trump never directed him and Weisselberg to inflate assets—but then reversed himself, saying he didn’t actually lie because Trump never told them directly, but rather just speaks like a “mob boss” and says things indirectly.
Key Background
Cohen previously served as Trump’s attorney and “fixer” before he pleaded guilty in 2018 to multiple federal charges, including campaign finance violations stemming from the hush money payments. No charges were brought against Trump at that time. The attorney initially claimed he paid Daniels himself without Trump’s knowledge or participation, before reversing course and saying under oath that he had acted at Trump’s direction. Cohen has since become one of Trump’s biggest critics and ultimately served a three-year prison sentence for his crimes. While Engoron noted in his ruling Cohen’s testimony wasn’t a “linchpin” for the state’s case, the attorney also initially helped to spark New York Attorney General Letitia James’ investigation that led to the fraud lawsuit, as he testified to Congress in 2019 that Trump had inflated or deflated the value of his assets for personal gain.
