Donald Trump's ex-attorney Michael Cohen made his debut in the civil fraud against the former president's business empire, testifying that he inflated the value of his boss's real estate assets to secure better insurance premiums.
Cohen, a previous ally of Trump who cut ties to the 45th president years ago, testified the value of the Trump Organization's holdings was "whatever number Mr. Trump told us" when he took the stand Tuesday. Cohen is one of the prime witnesses in the case brought by Democratic New York Attorney General Letitia James.
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"He would say, 'I'm actually not worth $4.5 billion; I'm really worth more like 6 [billion]," Cohen said, alleging that Trump tasked him with increasing the value of the company's assets "based upon a number that he arbitrarily elected."
Trump's legal strategy has been to amplify Cohen's testimony as a way to discredit him, with the former president declaring Cohen a "proven liar" on his way into the courtroom Tuesday morning.
Cohen began his testimony with questions from Colleen Faherty of the New York attorney general's office about the crimes he pleaded guilty to in 2018, including tax crimes, campaign violations, and lying to Congress.
He previously testified before Congress in 2019 about Trump's alleged involvement in a hush-money scheme surrounding former Playboy model Karen McDougal and porn star Stormy Daniels, who alleged having affairs with Trump. Trump denies those claims.
Cohen said "I acknowledge my complicity" in the Daniels matter but swore that he never paid McDougal, explaining the payments to the latter were through AMI, the former owner of the National Enquirer.
Trump, facing criminal charges over an alleged "catch-and-kill" scheme concerning business falsifications over the hush money payments, did not react during Cohen's testimony and stared directly at him. At some points, he leaned back in his chair and whispered to his lawyers.
Cohen also admitted he lied to Congress in a 2017 testimony about how many times he spoke with Trump about a Trump Tower Moscow project, saying he testified it was three times but that it was actually 10.
"I did that at the direction of in concert with and for the benefit of Mr. Trump," Cohen said.
Faherty's questioning appeared to be an attempt to ward off attacks by Trump's lawyers about Cohen's credibility.
Trump has denied wrongdoing and defended the valuations of his properties, saying the case is a political witch hunt, a similar charge he levies about his four criminal cases that are slated for trials in 2024 as he mounts his bid to become the Republican nominee for the next presidential election.
In the $250 million civil lawsuit, James alleges Trump and co-defendants, including his sons Eric and Don Jr., inflated assets on financial statements to get better terms on commercial real estate loans and insurance policies.
Trump returned to the courtroom this week after he was fined $5,000 last week by Judge Arthur Engoron and warned about imprisonment for violating a gag order not to speak about members of the court staff.
Trump's attorney Alina Habba ended the day with a cross-examination of Cohen, asking if he ever told his wife that he was committing tax evasion, which Cohen objected to. Another defense attorney, Chris Kise, called Cohen a witness who was "completely out of control" and a "serial liar," according to a New York Daily News reporter in the room.
“So you have lied under oath numerous times, Mr. Cohen — isn’t that correct?” Habba asked, to which Cohen said, "That's correct."
“And you no longer have your law license," Habba said.
“Asked and answered,” Cohen replied.
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Habba's cross-examination only lasted briefly and is expected to continue when the trial resumes Wednesday.
The judge asked Cohen earlier in the day to avoid discussion with anyone about the trial or testimony and repeated his warning before the court ended for the day.