NEW YORK — A Manhattan judge held former President Donald Trump in civil contempt Monday, slapping him with daily $10,000 fines for “repeated delays and failures” to comply with New York Attorney General Letitia James’ fraud investigation.
“Mr. Trump, I know you take your business seriously, and I take mine seriously. I hereby hold you in civil contempt and fine you $10,000 a day,” Manhattan Supreme Court Justice Arthur Engoron said, addressing Trump, though the former president was not present for the hearing.
The judge ruled the former president flouted a court-ordered March 31 deadline to turn over paperwork. The fines will continue until Engoron decides Trump has fully complied with James’ demands for documents.
The judge concluded the hearing with a theatrical slam of the gavel.
The AG says she has evidence Trump’s family company engaged in “fraudulent and misleading” business practices by manipulating the value of its properties for financial gain, whether by inflating values to secure loans and insurance coverage or deflating them to reduce taxes. The investigation is winding down after almost three years.
“Today, justice prevailed,” James said in a statement. “For years, Donald Trump has tried to evade the law and stop our lawful investigation into him and his company’s financial dealings. Today’s ruling makes clear: No one is above the law.”
Trump lawyer Alina Habba vowed to immediately take steps to get the contempt order revoked.
Before Engoron announced his decision, lawyers from James’ office likened obtaining crucial documents from Trump and the Trump Organization to “pulling teeth.”
“We are being deprived of evidence,” said Assistant Attorney General Andrew Amer. “We are being hampered in our efforts to have a complete understanding because we don’t have evidence from the person who sits at the top of (the) organization.”
Amer said Trump has two personal cellphones. But Trump has not submitted a sworn statement he never uses them to text.
“The only way to know that is to have the phones imaged and searched,” said Amer. “We certainly know he tweets.”
Habba insisted the former president had handed over everything he had.
“President Trump does not email, he does not text message, and he has no work computer at home or anywhere else,” Habba said in Manhattan Supreme Court.
The New Jersey-based lawyer said Trump and his eponymous company had provided the AG with over 6 million documents connected to more than 100 Trump Organization entities. Habba said she flew to Mar-a-Lago to personally ask Trump if there was “any possibility” of evidence that hadn’t been turned over.
“Donald Trump does not believe he’s above the law. He sat with me, he went through the documents personally,” said Habba. She later clarified that she “misspoke” and that Trump had authorized her to search for documents.
“My client is an honest person, much to the dismay of certain people in this room,” Habba replied, insisting there was no more evidence to provide.
Later Monday, Engoron ordered global real estate firm Cushman & Wakefield to comply by May 27 with the AG’s subpoenas for information on its real estate services for the Trump Organization. The firm had previously refused to provide details on its appraisals of Trump’s Seven Springs Estate in Westchester County, New York, Trump National Golf Club, Los Angeles, and 40 Wall St., according to the AG.
James has alleged Trump habitually lied about the value of his properties. The falsehoods even allegedly extended to Trump’s triplex penthouse in Trump Tower. Trump claimed in 2015 that the apartment was 30,000 square feet and worth $327 million, according to court papers. But the AG says that overestimates its value by about $200 million — and that it’s closer to 10,966 feet.
James says Trump, his company, and his adult children were “closely involved” in the valuations her office is investigating. The former president, Ivanka Trump and Donald Trump Jr. are appealing an order that they sit for depositions with the AG’s office. Eric Trump sat for questioning under oath in 2020 — and invoked his Fifth Amendment right at least 500 times.
A criminal investigation by the Manhattan district attorney, running parallel to James’ probe, is examining much of the same alleged conduct. It led to an indictment against the Trump Organization and its long-serving chief financial officer, Allen Weisselberg, on Jun. 30, 2021. Both have denied engaging in a 15-year tax fraud scheme.
The two prosecutors in charge of the DA’s probe quit in February, with one writing in his resignation letter that he believed Trump was guilty of multiple felonies.
DA Alvin Bragg has insisted the probe is ongoing and could still result in charges against Trump.
Trump has called both investigations a “witch hunt.”
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