Trump Lawyer Blasts New York Attorney General as “Clueless” Over Property Business

William FurneyOct 21, 2023

Minute Read

A lawyer for former president Donald Trump who is defending him in a New York courtroom over fraud charges relating to the Trump Organization has hit out at the city’s attorney general as being clueless about how the property business works.

Banks’ Own Valuations

Lawyer Alina Habba, speaking to reporters after a hearing on Tuesday that Trump attended, said it was normal for banks to value properties they were giving loans against, refuting claims by New York Attorney General Letitia James, who brought the case against Trump.

Lesson in Appraisals

Habba told reporters: “I think you guys need to understand something: banks hire appraisers, everybody here knows it. Everybody here who has purchased a home or purchased anything in real estate understands this very basic thing.”

Fraud Trial

Image Credit: Eric Urquhart / Shutterstock.

The case against Trump also includes his adult sons and some senior Trump Organization executives. It revolves around allegations that the company inflated the size and value of its many properties, including Trump Tower, where the former president has a penthouse. The defendants did this, the lawsuit alleges, to obtain favorable loans from banks as well as insurance.

An Early Ruling

The judge in the case, Arthur Engoron, ruled in September that “conclusive evidence” showed that Trump and his sons had committed fraud, by exaggerating the value of their properties and Trump’s own personal wealth — which he claimed at around $4.5 billion while Germany’s Deutsche Bank found was around half that.

Plain Speaking

Image Credit: Joe Tabacca / Shutterstock.

Lawyer Habba continued outside the courtroom on Tuesday to provide a lesson in the property business for assembled reporters.

“Let me put this whole case in plain English for you, OK? You are an individual; you go to get something appraised. You say my house is worth this. Your bank doesn’t take your word for it.”

Banks’ ‘Lower Valuations’

Habba told the reporters that banks “hire people … to go do their own values. Now, those values are going to be lower than the ones that the homeowner or the commercial real estate owner would use. It’s very basic.”

‘James Tower’ Not Worth as Much

And the lawyer reserved her most cutting remarks till the end, saying the attorney general’s name on Trump Tower would see its valuation plummet.

“If you take Trump Tower and you take the Trump name off of that building and you put Letitia James’ name on that building, it would not be worth what it’s worth when Donald Trump owns it,” she said.

‘Lies and Sand’

The New York attorney general had remarks of her own about Trump to make to reporters on Tuesday.

“He can call me names. He can engage in distractions. But at the end of the day … his entire empire was built on nothing but lies and on sinking sand,” said James.

Career Under Threat

Trump faces career ruination if he is found guilty, not only because the court has already revoked some of his business licenses in the state — meaning he stands to lose control of the Trump Organization — but also because of a fine of at least $250 million that prosecutors are seeking.

Trump Attacks

Trump has hit out at those involved in the New York fraud trial, including a senior clerk at the court. Judge Engoron then slapped Trump with a gag order, saying: “Personal attacks of any member of my court staff are unacceptable, inappropriate and I will not tolerate them.”

One of Many Trump Trials

The New York proceedings are only one of many legal headaches the former president is dealing with. He is also fighting off federal charges that he tried to overturn the results of the 2020 presidential election he lost to Joe Biden and attempted to block the transfer of power.

Top-Secret Documents Case

Prosecutors have also charged him with illegally taking confidential government documents from the White House and storing them in a number of rooms at his Mar-a-Lago resort in Florida. Prosecutors further allege that Trump shared the top-secret information with others, potentially putting US national security at risk.

Presidential Run

All Trump’s legal troubles come at a time when he is seeking the Republican nomination to run for president in next year’s election. There will be some solace for the 77-year-old in that support among Republican voters remains high, putting him far ahead in the polls over his Republican contenders, including Florida Governor Ron DeSantis, who is trailing Trump by around 50 percentage points.