Thread by @Jose_Pagliery

Breaking news before the start of Donald Trump bank fraud trial Day 4.

The judge clearly thinks the disgraced ex-president might play games to save his Monopoly board of real estate assets.

@thedailybeast story here. I'm covering the courtroom live.

thedailybeast.com/judge-tries-to…

@thedailybeast Trump's outside accountant, Donald Bender, is somehow still on the stand.

Bender testifies he was close friends with Trump Org controller Jeff McConney (who helped the company commit tax fraud)... but things have "soured" in recent years.

Well, yeah.

@thedailybeast Bender doesn't remember ever asking for Trump real estate appraisals... for the very properties he was listing in compiled financial statements.

Trump lawyer Jesus Suarez is getting frustrated.

Suarez: "Are you familiar with the real estate industry?"

Bender: "Somewhat."

@thedailybeast Bender claims he had no idea the Trump had independent appraisals done for many properties until he met with Manhattan DA in Spring 2021.

Suarez: You didn't know a real estate developer would have access to appraisals?

Bender: They represented they gave me everything I needed.

@thedailybeast Bender reveals he was never threatened with prosecution by the Manhattan DA's office.

Not relevant in this AG case, but curious nonetheless.

@thedailybeast Suarez: You never said, 'I don't have a single appraisal for your massive, giant real estate company... that I know has books & records & loans?' It never crossed your mind that is an entity that could have an appraisal?

Judge: "That's not what he's testifying to."

@thedailybeast Suarez's voice suddenly takes an insincere tone.

"I have to ask... are there any mental health reasons you can't testify today?"

AG's lawyer objects. Judge sustains.

@thedailybeast Trump lawyer Clifford Robert is questioning Bender now and has quickly:

• questioned his memory
• made a veiled threat to have Trump sue him for bad professionalism
• noted Trump was his biggest client, providing more than 50% of his revenue at Mazars ($1-2 million a year)

@thedailybeast AG's Kevin Wallace's turn. He counters Trump team's narrative, pointing out how the accounting profession made a key change in 2009:

Now accountants compiling financial statements would only watch out for "arithmetical or clerical mistakes" & others like "inadequate disclosure."

@thedailybeast Bender's done. At this pace, this trial could go on until Election Day 2024.

Next up: Trump Org inside accountant Jeffrey McConney.

@thedailybeast McConney sits down by the judge.

Last time we heard from him was at the Trump Org tax fraud trial, where he explained how he helped cook the books.

Keep in mind, he's a witness—but he's a party in this civil lawsuit, also accused of taking part in this bank fraud.

@thedailybeast Andrew Amer, special litigation counsel at the AG's office, is asking the questions.

McConney says he primarily responsible for preparing Trump Org real estate valuations that went into statements in the relevant time period, 2011-2017.

@thedailybeast Here's some news: Jeff McConney says he recently quit the Trump Organization.

He retired & got a $500,000 severance package.

He's gotten $375,000... but is still owed $125,000.

Red flags, anyone?

Amer: Is that contingent on anything?

McConney: No, other than me being alive.

@thedailybeast Interesting parallel here: When Trump Org CFO Allen Weisselberg testified at the company's tax fraud trial last year, he revealed that he was (still!) waiting for his year-end $500,000 bonus.

It seemed like Trump Org was hanging it over his head.

See:
thedailybeast.com/the-trump-orga…

@thedailybeast While reviewing the contract between Trump Org and the accounting firm Mazars, McConney just conceded the disclaimers lay all the blame on the big boss.

Amer: They place the burden "squarely on Trump's shoulders, correct?"

McConney: "Yes."

@thedailybeast He may have said "correct." Amer's going pretty fast now.

The idea here is that Mazars was clearly not auditing Trump Org's numbers.

If the numbers are juiced, it's Trump's fault.

@thedailybeast New evidence:

We're seeing the 2013 Mazars "independent accountants' compilation report," which McConney marked up for 2014 numbers in blue pen.

Various properties are going up and down in value. Mostly up.

The top right says, "DJT to get final review."

@thedailybeast We're getting an intimate look at Donald Trump's personal finances in bank documents.

June 2012, Trump reported he was worth $4.5 billion.

Deutsche Bank "adjusted" it down to $2.4 billion.

@thedailybeast We're back from a lunch break. Trump's legal team just tried to pause the entire trial—and the order putting Trump Org into receivership—as they ask the appellate court to step in.

The judge clarifies they can do that, but have to keep going with trial until they file appeal.

@thedailybeast McConney is back on the stand, and Amer is probing internal Trump Org spreadsheets.

AG is making the case that McConney listed cash—that Trump didn't even have access to—in a way that would dupe their outside accountant, Bender.

@thedailybeast Correction to my subsequent tweet, which I've deleted. We're talking about another Trump triplex—not his gold-plated one.

We're talking about this one:

.nytimes.com/2018/03/01/rea…

@thedailybeast The day ended without much action. Trial starts up again tomorrow morning for a half day, which will probably be more from McConney.

Convicted tax cheat and Rikers Island survivor Allen Weisselberg is due to appear Tuesday.

/fin