Donald Trump loses bid to halt New York civil fraud trial - Action News
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Donald Trump loses bid to halt New York civil fraud trial

Donald Trump's civil fraud trial will proceed next week after the former U.S. president lost a bid Friday to halt the proceedings while he fights a pretrial ruling that could strip him of Trump Tower and other marquee properties.

Trial to continue next week

Donald Trump gestures to the media when entering a New York state courtroom.
Former U.S. president Donald Trump, seen gesturing to reporters on Wednesday, has lost a bid Friday to halt the proceedings of his civil fraud trial while he fights a pretrial ruling that could strip him of Trump Tower and other marquee properties. (Mary Altaffer/The Associated Press)

Donald Trump's civil fraud trial will proceed next week after the former U.S. president lost a bid Friday to halt the proceedings while he fights a pretrial ruling that could strip him of Trump Tower and other marquee properties.

An appeals court judge rebuffed Trump's push to pause the New York trial, but agreed to leave him in control of his holdings for now.

The decision, after an emergency hearing Friday afternoon, came five days into thetrial.

Trump went to the courthouse for the first three days of the trial in New York Attorney General Letitia James's lawsuit, observing testimony and fulminating to TV cameras outside about a case he deemed a "a witch hunt and a disgrace."

'Massive error'

Trump's lawyers had asked the state's intermediate appellate court to suspend the trial and prevent Judge Arthur Engoron from enforcing a ruling he made last week, which foundTrump committed years of fraud as he built thereal estate empire that vaulted him to fame.

Ruling on the top claim in James's lawsuit, the judge found Trump routinely deceived banks, insurers and others by exaggerating the value of assets on his annual financial statements.

Trump has denied any wrongdoing.

Engoron's decision also revoked Trump's business licences and puts a court-appointed receiver in charge of his companies.

"This is a massive error. It is irreparable," Trump lawyer Christopher Kise told the appellate judge, Associate Justice Peter H. Moulton.

Kise arguedthe ruling will make defendants in other cases fear that their companies and properties will be seized without recourse.

Trump's lawyers said the ruling could harmthe ex-president and other defendants, andas many as 1,000 employees.

State Deputy Solicitor General Judy Vale told the appeals judge that James's office had offered to keep the business licences as is until after the trial. Kise acknowledged the offer, but expressed concernEngoron wouldn't allow it.

"We could have resolved some of this, and we're still happy to do so," Vale said, calling the defence arguments for a delay "completely meritless."

"No one thinks the lights will go off at 40 Wall St.tomorrow, that's not what's happening," Vale said, referring to one of Trump's signature New York properties.

Mounting the trial has been "an enormous endeavour," Vale said, entailing extensive court planning, security resources for Trump's attendance and special arrangements for press and public access.

In a statement, Kise said: "We are very pleased the First Department upheld New York law and put a halt to any cancellation of business certificates, receivers or dissolution. The trial court's attempt to reach issues, entities and assets beyond the scope of this case has been suspended."

James countered that Trump's side was "falsely claiming victory" for a resolution that her office had proposed and that the big takeaway was that the trial goes on as scheduled.

"Once again, Donald Trump's attempts to delay this trial have been rejected," James said in a statement. "Yet another court denied his efforts to evade justice for his years of fraud. But Donald Trump lives in a fantasy world where money grows on trees and facts don't matter."