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Judge Arthur Engoron sits on the bench in the courtroom Wednesday before the start of a civil business fraud trial against the Trump Organization at New York Supreme Court in New York. Donald Trump’s lawyers asked a New York appeals court Friday to halt his Manhattan civil fraud trial while they fight a court ruling that calls for dissolving companies that control some of the former president’s most prized assets, including Trump Tower.
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Trump's New York civil fraud trial rolls on after an appeals judge declines to halt it

Mary Altaffer/Associated Press

Trump's New York civil fraud trial rolls on after an appeals judge declines to halt it

NEW YORK — Former President Donald Trump’s civil fraud trial will roll ahead next week after he lost a bid Friday to postpone it.

Mr. Trump wanted to halt the trial while he fights a pretrial ruling that could strip him of control of such assets as Trump Tower. An appeals judge rebuffed the request for a pause but agreed that control over the holdings will stay as-is for now.

Friday’s decision came five days into the closely watched trial, which drew Mr. Trump to the courthouse to observe — and fulminate — for days this week.

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Mr. Trump’s lawyers had asked the state’s intermediate appellate court to suspend the trial in New York Attorney General Letitia James’ lawsuit and prevent Judge Arthur Engoron from enforcing a ruling he made last week. Judge Engeron’s decision revoked the Republican presidential frontrunner's business licenses and puts a court-appointed receiver in charge of his companies.

“This is a massive error. It is irreparable,” Trump attorney Christopher Kise told the appellate judge, Associate Justice Peter H. Moulton. Mr. Kise argued that the ruling will make defendants in other cases fear that their companies and properties will be seized without recourse.

“We’re not seeking a delay. We’re seeking a fair trial,” Mr. Kise said.

Mr. Trump's lawyers said the ruling could harm not only the ex-president and other defendants but as many as 1,000 employees.

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Ms. James’ office has talked to the defense about delaying enforcement of Judge Engoron’s ruling during the trial, provided it proceeds, state Deputy Solicitor General Judy Vale told the appeals judge.

“We could have resolved some of this, and we’re still happy to do so,” Ms. Vale said.

She called the defense arguments for a delay “completely meritless” and noted that mounting the trial has been ”an enormous endeavor.” It has entailed extensive court planning, security resources for Mr. Trump’s attendance and special arrangements for press and public access.

Ahead of the hearing, Ms. James said Mr. Trump and the other defendants “can continue to try to delay and stall, but the evidence is clear, and our case is strong.”

She declined to comment afterward, as did Mr. Trump’s lawyers.

The appellate court last week rejected the defense’s last-minute effort to delay the trial just days before it began. On Thursday, Mr. Trump’s lawyers dropped a lawsuit they filed against Judge Engoron as part of that challenge.

Judge Engoron ruled last week that Mr. Trump committed years of fraud as he built the real estate empire that vaulted him to fame and the White House.

The judge, ruling on the top claim in Ms. James’ lawsuit, found that Mr. Trump routinely deceived banks, insurers and others by exaggerating the value of assets on his annual financial statements, which were used in making deals and securing loans.

Mr. Trump has denied wrongdoing, arguing that some of his assets are worth far more than what’s listed on the statements.

Before the appellate action, former Trump Organization controller Jeffrey McConney testified in the trial court Friday that values he assigned to Mr. Trump’s Mar-a-Lago resort in Florida — as much as $739 million in 2018 — were based on the false premise that it could be sold as a private residence. Such use is prohibited by Mr. Trump’s 2002 agreement with the National Trust for Historic Preservation.

“Were you aware that Mr. Trump had deeded away his right to use the property for any other purpose than a social club?” state lawyer Andrew Amer asked.

“I was not aware,” said Mr. McConney, who's also a defendant in this case.

The trial will resume Tuesday with Mr. Trump’s longtime finance chief Allen Weisselberg on the witness stand. Mr. Weisselberg, a defendant, oversaw Mr. Trump’s dealmaking, was involved in securing loans and supervised Mr. McConney’s work on the financial statements. He left jail in April after serving about 100 days for dodging taxes on $1.7 million in job perks.

As the trial was unfolding this week, Judge Engoron issued an order Thursday setting procedures for enforcing his ruling. He gave both sides until Oct. 26 to submit names of potential receivers and gave Mr. Trump and other defendants seven days to provide a court-appointed monitor, retired federal judge Barbara Jones, with a list of all entities covered by the ruling.

He also ordered the defendants to give Ms. Jones advance notice of any application for new business licenses in any jurisdiction and any attempts to create new entities to “hold or acquire the assets” of a company that’s being dissolved under the ruling.

Mr. Trump’s lawyers argued in court papers that Judge Engoron had “no rationale or legal authority” to impose what they described as “the corporate death penalty.” They also rapped the judge for not being clear in explaining the real-world effects of his decision.

At a pretrial hearing on Sept. 26, Trump lawyer Christopher Kise pressed Judge Engoron to clarify whether his ruling meant Mr. Trump would be required simply to close up some corporate entities or if he’d be forced to relinquish some of his most prized assets.

Judge Engoron then said he wasn’t “prepared to issue a ruling right now.”

First Published: October 6, 2023, 6:10 p.m.
Updated: October 6, 2023, 8:50 p.m.

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Judge Arthur Engoron sits on the bench in the courtroom Wednesday before the start of a civil business fraud trial against the Trump Organization at New York Supreme Court in New York. Donald Trump’s lawyers asked a New York appeals court Friday to halt his Manhattan civil fraud trial while they fight a court ruling that calls for dissolving companies that control some of the former president’s most prized assets, including Trump Tower.  (Mary Altaffer/Associated Press)
FILE - Former President Donald Trump sits in the courtroom before the continuation of his civil business fraud trial at New York Supreme Court, Tuesday, Oct. 3, 2023, in New York. Donald Trump’s lawyers asked a New York appeals court Friday to halt his Manhattan civil fraud trial while they fight a court ruling that calls for dissolving companies that control some of the former president’s most prized assets, including Trump Tower. (AP Photo/Seth Wenig, Pool)  (ASSOCIATED PRESS)
FILE - Former President Donald Trump speaks to reporters as he leaves the courtroom during a lunch break in his civil business fraud trial, Oct. 4, 2023, in New York. Donald Trump’s lawyers asked a New York appeals court Friday to halt his Manhattan civil fraud trial while they fight a court ruling that calls for dissolving companies that control some of the former president’s most prized assets, including Trump Tower. (AP Photo/Mary Altaffer, File)  (ASSOCIATED PRESS)
FILE - New York Attorney General Letitia James leaves the courtroom during a lunch break in civil business fraud trial against former President Donald Trump and the Trump Organization, Wednesday, Oct. 4, 2023, in New York. (AP Photo/Mary Altaffer, File)  (ASSOCIATED PRESS)
Mary Altaffer/Associated Press
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