Wednesday Reads: Hump Day News and Views

Good Day!!

hump-dayIt’s only Wednesday, and it has already been a crazy week in politics. Here’s what’s happening:

Trump is attending day three of the civil trial against the Trump Organization for tax and bank fraud. As he did on Monday and Tuesday, he stood in front of the courthouse and whined to reporters about how unfairly he is being treated. He called the trial a “witch hunt” and claimed he would eventually testify.

Yesterday Judge Arthur Engoron issued a gag order after Trump posted Judge Engoron’s primary clerk on Truth Social.

The Guardian: Judge issues gag order after Trump’s comments on court clerk in civil trial.

The judge overseeing Donald Trump’s civil fraud trial issued a gag order on Tuesday after the former president made comments about the judge’s clerk.

“Consider this statement a gag order forbidding all parties from posting, emailing or speaking publicly about any of my staff,” the judge, Arthur Engoron, said on Tuesday afternoon. “Personal attacks on members of my court staff are unacceptable, inappropriate and I will not tolerate them in any circumstances.

“Failure to abide by this order will result in serious sanctions.”

The second day of Trump’s trial got off to another combative start after Trump branded the case a “fraud” and a “scam” and pledged to take the stand in his own defense.

Asked if he would testify in the case, Trump said: “Yes, I will. At the appropriate time I will be.”

But Trump’s comments about Engoron’s law clerk, the attorney Allison Greenfield, proved a step too far. Over lunch Trump attacked Engoron’s clerk in a social media post, linking to a picture of her with the Democratic Senate majority leader, Chuck Schumer. He called her “Schumer’s girlfriend” and said she “is running this case against me. How disgraceful! This case should be dismissed immediately.”

The post on Trump’s Truth Social platform was deleted on Engoron’s orders.

Later the Judge met privately with Trump and Letitia James. Jose Pagliery at The Daily Beast: Judge Kicks Reporters Out of Courtroom to Talk to Trump and AG.

A turbulent second day at Donald Trump‘s bank fraud trial in New York came to an equally puzzling end, when the judge unceremoniously kicked out all journalists from the courtroom to speak privately with the former president and Attorney General Letitia James.

When one reporter asked whether the courtroom was being sealed, Justice Arthur F. Engoron did not respond. Instead, security personnel yelled at journalists to leave immediately.

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Donald Trump glowers at the Judge on day one of the New York civil trial.

Trump, James, and their respective legal teams remained in the courtroom for more than 20 minutes before exiting.

On his way out, Trump surprised everyone by stating that he will return to court Wednesday.

“I’ll be back tomorrow. Good day,” he said with a wave, before ducking into a side exit with his attorneys and Secret Service security detail.

James refused to answer any questions on her way out, preventing the public from knowing what was going on inside.

Earlier in the day, Engoron issued a gag order against Trump after he posted on his social media site, Truth Social, accusing one of Engoron’s law clerks of having a relationship with Sen. Chuck Schumer (D-NY).

Pagliery reports from the courthouse today: Trump Finally Brings His Online Rage to the Courtroom.

A day after receiving a tongue lashing from a judge disturbed by Donald Trump’s insolence outside the New York courtroom, the former president began to make exasperated remarks inside the court, as the third day of his bank fraud trial started Wednesday.

The increasingly furious Trump—whose real estate empire has already received the kiss of death from the judge—remained quiet during the first two days of proceedings, instead choosing to rail against the entire justice system outside the room’s wooden doors. But when Justice Arthur F. Engoron noted that typical formalities could be cast aside because there’s no jury here, Trump began to grumble and angrily folded his arms while staring at the judge.

Trump turned to defense lawyer Alina Habba at his left to complain in loud groans—this reporter could only make out the words “no jury!”—then threw his arms up and shook his head.

The former president then let out an annoyed sigh and slumped forward, stretching his dark blue suit jacket.

Just before the trial got underway on Wednesday, he was even louder online, where he wrote, “I am not even entitled, under any circumstances, to a JURY. This Witch Hunt cannot be allowed to continue. It is Election Interference and the start of Communism right here in America!”

Minutes later, Trump then complained in court that he couldn’t make out what was being said by the witness on the stand: his longtime former accountant Donald Bender, who became a state witness and disavowed much of the work he did for the Trump Organization and its vastly inflated assets. The testimony could be perceived as a betrayal given that Bender made millions at the firm Mazars USA by working for the Trump family, which invited him to golf courses, hotels, and parties.

Yesterday afternoon, House Republicans came close to eclipsing Trump news, as Matt Gaetz and a few other MAGA crazies removed House Speaker Kevin McCarthy, leaving the House in utter chaos.

The New York Times: House Is Paralyzed, With No Speaker After McCarthy Ouster.

The House of Representatives was in a state of paralysis on Wednesday, ground to a halt by the ouster of Republican Speaker Kevin McCarthy and with no clear sense of who might succeed him — or when.

After a historic vote to remove Mr. McCarthy on Tuesday, lawmakers quickly departed Washington and scattered to their districts around the country, abandoning the Capitol as Republicans remained deeply divided over who could lead their fractious majority.

“What now?” one Republican muttered aloud on the House floor just after the vote on Tuesday afternoon, the first time the chamber had ever removed a speaker from his post involuntarily.

Kevin-McCarthy-s-Version-of-WinningIt underscored the chaos now gripping the chamber, which is effectively frozen, without the ability to conduct legislative business, until a successor to Mr. McCarthy is chosen. The California Republican said late Tuesday that he would not seek the post again after being deposed by a hard-right rebellion.

The vacancy promised to tee up another potentially messy speaker election at a time when Congress has just over 40 days to avert another potential government shutdown. But it was not yet clear who might run.

Discussions on the future of the conference were being led by Representative Patrick T. McHenry of North Carolina. Mr. McCarthy had named Mr. McHenry first on a list of potential interim speakers in the event of a calamity or vacancy, but he does not have power to run the chamber — only to preside over the election of a new speaker.

While no Republican has announced a bid for the post, some names reliably come up in conversations with G.O.P. lawmakers, including Mr. McHenry and Representative Tom Cole, the Oklahoma Republican and Rules Committee chairman, as well as the No. 2 and No. 3 House Republicans, Representatives Steve Scalise of Louisiana and Tom Emmer of Minnesota.

This morning, Ohio Rep. Jim Jordan announced he would run for Speaker. Politico: Jim Jordan becomes first to announce run for speaker.

Rep. Jim Jordan said he will run to be the next speaker, a move likely to prompt praise from House conservatives.

Jordan, the House Judiciary chair and member of the House Freedom Caucus, has worked closely with Oversight Chair James Comer (R-Ky.) on the impeachment inquiry into Joe Biden. He had also become a close ally of now-ex Speaker Kevin McCarthy in recent years. 

But his candidacy will likely run right into Majority Leader Steve Scalise (R-La.), who is also considering a speakership bid and has worked to court conservatives.

“Jim is a friend, and I certainly think he brings a whole lot that this conference would be able to rally around, but we’ve got to all have a conversation and I’m not going to say who I’m supporting at this point,” said Rep. Chip Roy (R-Texas), a member of the conservative House Freedom Caucus.

“We’re going to figure this out behind closed doors as a family,” he added.

The Ohio Republican was elected to Congress in 2007. He is a Trump ally within the GOP conference and one of the many chairs to have called for Congress to defund the Department of Justice over whistleblower claims that DOJ hampered the Hunter Biden investigation.

But wouldn’t Jordan have to wear a suit and get a couple of new ties if he were Speaker?

Patrick McHenry’s first act as Speaker Pro Tempore was to kick Nancy Pelosi out of her Congressional office. Pelosi didn’t vote to remove McCarthy, because she is in California for Diane Feinstein’s funeral.

Politico: McHenry ordered Pelosi to leave her Capitol hideaway office by Wednesday.

As one of his first acts as the acting speaker, Rep. Patrick McHenry ordered former Speaker Nancy Pelosi to vacate her Capitol hideaway office by Wednesday, according to an email sent to her office viewed by POLITICO.

Congress

Rep. Patrick McHenry, R-N.C.

“Please vacate the space tomorrow, the room will be re-keyed,” wrote a top aide on the Republican-controlled House Administration Committee. The room was being reassigned by the acting speaker “for speaker office use,” the email said….

Only a select few House lawmakers get hideaway offices in the Capitol, compared to their commonplace presence in the Senate.

House Minority Leader Hakeem Jeffries’ staff helped Pelosi’s office make the move, according to a spokesperson for the former speaker.

Here’s Pelosi’s full response to the eviction, from Raw Story:

“With all of the important decisions that the new Republican Leadership must address, which we are all eagerly awaiting, one of the first actions taken by the new Speaker Pro Tempore was to order me to immediately vacate my office in the Capitol,” Pelosi said in a statement, according to Politico’s Nicholas Wu. “Sadly, because I am in California to mourn the loss of and pay tribute to my dear friend Dianne Feinstein, I am unable to retrieve my belongings at this time.”

“This eviction is a sharp departure from tradition. As Speaker, I gave former Speaker Hastert a significantly larger suite of offices for as long as he wished,” She noted.

“Office space doesn’t matter to me, but it seems important to them,” Pelosi added. “Now that the new Republican Leadership has settled this important matter, let’s hope they get to work on what’s truly important to the American people.”

Three longer opinion pieces on the McCarthy mess:

John F. Harris at Politico Magazine: The House GOP Is a Failed State.

Amanda Marcotte at Salon: Kevin McCarthy’s embarrassing lesson: MAGA torches everything it touches — and will destroy itself.

NBC News: Kevin McCarthy’s ‘original sin’: What drove the House speaker’s historic downfall.

Two more interesting stories to check out:

The Atlanta Journal-Constitution: Fulton prosecutors float plea deals to Trump defendants.

Fulton County prosecutors are floating plea deals to a number of defendants in the election interference case involving former President Donald Trump, according to people with knowledge of the proposals.

At least a handful of the now 18 defendants have received offers from the District Attorney’s office — or prosecutors have touched base with their attorneys to gauge their general interest in striking a deal for a reduced charge in exchange for their cooperation, according to the legal sources, who spoke on condition of anonymity to discuss sensitive ongoing negotiations.

It’s common for prosecutors to float plea deals to lower-level defendants in large racketeering cases as they home in ontheir biggest targets. Trump and his former personal attorney Rudy Giuliani face the most chargesin the 41-count indictment, which centers on efforts to overturn the results of Georgia’s 2020 presidential election.

Late last week, Atlanta bail bondsman Scott Hall became the first defendant to accept a deal, pleading guilty to five misdemeanor counts in exchange for his testimony.

The Atlanta Journal-Constitution has learned that Fulton prosecutors have also offered a deal to Michael Roman, who worked as director of Election Day operations for the Trump campaign in 2020. A member of Roman’s legal team told The AJC theyrejected the DA’s proposal and that no agreement has been reached….

People who were indicted for their alleged roles in the appointment of a slate of Trump electors, election data breach in Coffee County and harassment of Fulton poll worker Ruby Freeman have also been approached by prosecutors, according to multiple sources. In the case of at least two of those defendants, no concrete offer has been made.

Click the link to read the rest.

The New York Times: Giuliani’s Drinking, Long a Fraught Subject, Has Trump Prosecutors’ Attention.

Rudolph W. Giuliani had always been hard to miss at the Grand Havana Room, a magnet for well-wishers and hangers-on at the Midtown cigar club that still treated him like the king of New York.

In recent years, many close to him feared, he was becoming even harder to miss.

Giuliani holds bizarre press conference at RNC HeadquartersFor more than a decade, friends conceded grimly, Mr. Giuliani’s drinking had been a problem. And as he surged back to prominence during the presidency of Donald J. Trump, it was getting more difficult to hide it.

On some nights when Mr. Giuliani was overserved, an associate discreetly signaled the rest of the club, tipping back his empty hand in a drinking motion, out of the former mayor’s line of sight, in case others preferred to keep their distance. Some allies, watching Mr. Giuliani down Scotch before leaving for Fox News interviews, would slip away to find a television, clenching through his rickety defenses of Mr. Trump.

Even at less rollicking venues — a book party, a Sept. 11 anniversary dinner, an intimate gathering at Mr. Giuliani’s own apartment — his consistent, conspicuous intoxication often startled his company.

“It’s no secret, nor do I do him any favors if I don’t mention that problem, because he has it,” said Andrew Stein, a former New York City Council president who has known Mr. Giuliani for decades. “It’s actually one of the saddest things I can think about in politics.”

Now prosecutors are looking at Giuliani’s problem.

Now, prosecutors in the federal election case against Mr. Trump have shown an interest in the drinking habits of Mr. Giuliani — and whether the former president ignored what his aides described as the plain inebriation of the former mayor referred to in court documents as “Co-Conspirator 1.”

Their entwined legal peril has turned a matter long whispered about by former City Hall aides, White House advisers and political socialites into an investigative subplot in an unprecedented case.

The office of the special counsel, Jack Smith, has questioned witnesses about Mr. Giuliani’s alcohol consumption as he was advising Mr. Trump, including on election night, according to a person familiar with the matter. Mr. Smith’s investigators have also asked about Mr. Trump’s level of awareness of his lawyer’s drinking as they worked to overturn the election and prevent Joseph R. Biden Jr. from being certified as the 2020 winner at almost any cost. (A spokesman for the special counsel declined to comment.)

The answers to those prompts could complicate any efforts by Mr. Trump’s team to lean on a so-called advice-of-counsel defense, a strategy that could portray him as a client merely taking professional cues from his lawyers. If such guidance came from someone whom Mr. Trump knew to be compromised by alcohol, especially when many others told Mr. Trump definitively that he had lost, his argument could weaken.

That’s it for me today. What do you think? What other stories have caught your interest?


Wednesday Reads: Trump is Out of Business in New York

Good Day!!

Lady_Justice_Eduardo_Rodriguez_Calzado, 2017

Lady Justice, by Eduardo Rodriguez, 2017

All hell broke loose in Donald Trump’s life yesterday afternoon. New York Supreme Court Judge Arthur Engoron cancelled his business licenses in the state and ordered them into receivership. Legal experts call this the “corporate death penalty.”

From long-time Trump expert David Cay Johnston at DC Report: Judge Gives Trump Organization the Corporate Death Penalty.

Donald Trump is no longer in business.

Worse, the self-proclaimed multibillionaire may soon be personally bankrupt as a result, stripped of just about everything because for years he engaged in calculated bank fraud and insurance fraud by inflating the value of his properties, a judge ruled Tuesday.

His gaudy Trump Tower apartment, his golf courses, his Boeing 757 jet and even Mar-a-Lago could all be disposed of by a court-appointed monitor, leaving Trump with not much more than his pensions as a one term president and a television performer.

A New York State judge on Tuesday cancelled all of the business licenses for the Trump Organization and its 500 or so subsidiary  companies and partnerships after finding that Trump used them to, along with his older two sons, commit fraud.

Under the New York General Business Law you can only do business in your own name as a sole proprietor or with a business license, which the state calls a “business certificate.”  All of Trump’s businesses were corporations or partnerships that require business certificates.

The civil fraud case was brought by Letitia James, the elected attorney general of New York State.

The evidence and the issues were so clear cut, Judge Arthur F. Engoron ruled on Tuesday, that there was no reason to waste the court’s time trying them.

In a 35-page decision, Judge Engoron also excoriated Trump and his lawyers for making nonsense arguments, so badly misquoting legal cases that they turned the law upside down, and other legal misconduct.

The judge also sanctioned Trump’s lawyers $7,500 each for repeatedly advancing frivolous arguments. Judge Engoron’s decision can be appealed, but that may not have much chance of succeeding.

I give Trump’s chances of prevailing on appeal at somewhere between zero and nothing except perhaps on some minor procedural point, which you can be sure Trump will describe as complete vindication.

The summary judgement decision Tuesday was partial, however.

A non-jury trial before Judge Engoron next week will determine how much Trump will be fined for his years of bank fraud and insurance fraud.

Barring a highly unlikely reversal by an appeals court, Trump’s business assets eventually will be liquidated since he cannot operate them without a business license. Retired Judge Barbara Jones was appointed to monitor the assets, an arrangement not unlike the court-supervised liquidation of a bankrupt company or the assets of a drug lord.

justice-pierre-subleyras

Justice, by Pierre Subleyras

I thought this piece by Jose Pagliery at The Daily Beast gave the clearest explanation of the details of the case among the many that I read: Trump Basically Just Lost the New York Bank Fraud Case Before It Even Started. I’ll post some of it, but I’d recommend read the whole article if you have the time and interest.

Former President Donald Trump, his top executives, and heirs were declared completely liable of “persistent and repeated fraud”—and the real estate empire was unceremoniously stripped of its business licenses in New York—after a judge’s powerful ruling Tuesday ahead of a massive trial that seeks to hit them with more than $250 million in penalties for bank fraud.

And in a stunning development, the judge has already ordered the complete dissolution of the fabled Trump Organization–the tycoon’s pride and joy, the empire that made him famous and elevated him into the White House. The Trump Organization and its sister companies will be sent into receivership to be under the control of a court-appointed officer.

Even before the trial officially starts, the ruling handed New York Attorney General Letitia James a near total victory, meaning that next week’s trial will mostly focus on damages that could pulverize whatever is left of Trump’s many business entities and bank accounts.

In his 35-page opinion, Justice Arthur F. Engoron tore apart what he called the Trump family’s “bogus arguments” and obstreperous conduct. And he summed up the entire defense as “a fantasy world, not the real world.”

“In defendants’ world: rent regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land, restricts can evaporate into thin air… all illegal acts are untimely if they stem from one untimely act; and square footage [is] subjective,” he wrote.

Trump, several of his heirs, and top executives will now be fighting off accusations of bank and insurance fraud at a civil trial that’s scheduled to run from early October until late December. AG Letitia James seeks to punish them all for routinely lying about property values to score better deals. At trial, it will be up to Judge Engoron alone whether the Trumps will owe $250 million-plus in penalties, be prohibited from serving as executives, and have the company charters revoked.

Of course, Trump posted an idiotic statement on the decision to Truth Social. It’s reproduced in the article. A bit more on the case itself:

The judge’s ruling represents a significant setback for Trump by revoking his company’s authority to do business in New York, where the Trump Organization is headquartered and where Trump has major real estate interests. It also represents a victory for Attorney General Letitia James (D), who had asked that Engoron simplify the upcoming trial by deciding in advance that fraud was broadly committed so the state would need to prove only specific illegal acts.

On Tuesday, Engoron ripped the Trumps—and their lawyers—apart for dragging this on so long with legal arguments that wasted the courts time by repeatedly questioning whether the AG even had the authority to hold them accountable this way.

Justice by Francisca Vogel

Justice, by Francisca Vogel

Those arguments “glaringly misrepresent” the law and trying them again and again “invoke the time-loop in the film Groundhog Day,’” the judge wrote, calling attempts to topple the case this way “pure sophistry.”

Engoron also made the pivotal decision to keep all of the AG’s lawsuit intact, concluding that all of the real estate deals in question are not too old for law enforcement to crack down on for bank fraud. He brushed off the Trumps’ attempt to whittle down the lawsuit ahead of a trial that could drain the wealthy family’s bank accounts.

The timing of this decision also throws a wrench into the Trumps’ Hail Mary play, in which they sued the judge directly and prematurely asked a state appellate court to intervene because he hadn’t yet made his decision on the statute of limitations—an oddly aggressive move that reeked of delay tactics. That higher court, the appellate division’s First Judicial Department, has yet to weigh in. Doing so now might be a moot point. As such, the trial appears to be set to start next Monday, as planned.

There’s still more from the Judge on Trump’s fraudulent behavior at the link. Pagliery tweeted from the New York courthouse this morning, where Trump’s lawyers were back arguing with the judge this morning. Here’s his latest article:

Jose Pagliery at The Daily Beast: Team Trump Prepares for Doom at New York Bank Fraud Trial.

On the heels of yesterday’s critical court ruling ordering the death of the fabled Trump Organization, lawyers for Donald Trump appeared in court on Wednesday to pick up the pieces and make sense of how this can possibly get any worse for the former president.

Huge sections of the Trump family’s real estate empire are having their business licenses revoked, and the Trumps are losing control of their companies to a court-appointed official. The trial set to start next week threatens to empty their bank accounts too.

Half a day after Justice Arthur F. Engoron’s Tuesday ruling, it’s evident the real estate tycoon and his lawyers still aren’t sure what will happen to Trump’s Monopoly board collection of buildings in Manhattan and elsewhere.

“Certain of the entities own physical assets, like 40 Wall Street and Trump Tower. Are those assets now going to be sold? Or managed under direction of the monitor?” Trump defense lawyer Christopher Kise asked the judge in court.

After privately discussing the matter with his law clerk, the judge declined to make a final decision “right now.” But the judge made clear an independent person will play a role in determining the fate of this multibillion dollar network of companies, giving both investigators and the Trump family extra time to jointly find an outside official who can oversee this while they’re wrested from the family’s control.

Engoron on Tuesday decided that New York Attorney General Letitia James already proved the Trump family routinely lied to banks by wildly inflating property values for years—the first of seven counts in the AG’s lawsuit. Each count alleges a violation of the state’s Executive Law § 63(12), which keeps corporations honest. In court today, Trump’s attorneys asked a question dripping with existential dread.

“What’s the point of the others?” Kise asked the judge. “I don’t know how many 63(12) counts you need. You’ve already granted relief, except for disgorgement.”

Kise was referring to the next punishment the Trumps might face, as state investigators want to seize $250 million-plus in profits that they obtained after faking asset values on business paperwork submitted to banks for loans.

La Justice, by Gee

La Justice, by Gee

This process is going to be fascinating. My guess is it will end up taking a long time before we know the final upshot. But as of now, Trump has been stripped of his identity as a successful businessman. That has to be deeply humiliating for him.

Trump whisperer Maggie Haberman and fellow New York Times reporter wrote about this: Ruling Against Trump Cuts to the Heart of His Identity.

Nearly every aspect of Donald J. Trump’s life and career has been under scrutiny from the justice system over the past several years, leaving him under criminal indictment in four jurisdictions and being held to account in a civil case for what a jury found to be sexual abuse that he committed decades ago.

But a ruling on Tuesday by a New York State judge that Mr. Trump had committed fraud by inflating the value of his real estate holdings went to the heart of the identity that made him a national figure and launched his political career.

By effectively branding him a cheat, the decision in the civil proceeding by Justice Arthur F. Engoron undermined Mr. Trump’s relentlessly promoted narrative of himself as a master of the business world, the persona that he used to enmesh himself in the fabric of popular culture and that eventually gave him the stature and resources to reach the White House.

The ruling was the latest remarkable development to test the resilience of Mr. Trump’s appeal as he seeks to win election again despite the weight of evidence against him in cases spanning his years as a New York developer, his 2016 campaign, his efforts to overturn his 2020 election loss and his handling of national security secrets after leaving office.

The authors note that, so far, none of the cases against Trump have seemingly hurt his campaign to win the presidency again in 2024.

Whether the effect of Justice Engoron’s ruling is any different remains to be seen. But his finding imperils both Mr. Trump’s public image and his business empire. The former president now faces not only the prospect of having to pay $250 million in damages, but he could also lose properties like Trump Tower that are inextricably linked to his brand….

In all of Mr. Trump’s recent legal travails, his typical tactics for self-preservation have largely failed him. When cornered, Mr. Trump has traditionally sought to bluster his way out of trouble, falling back on exaggerations or outright lies to escape.

These methods have served him well in the business and political arenas, where there is often little price to pay for bending the truth and where voters tend not to distinguish between gradations of prevarications. Those methods, though, have been much less effective so far in the courts, which operate according to strict standards of veracity and staid and sober rules.

In straightforward terms, Justice Engoron punctured Mr. Trump’s bubble of protective falsehoods about the way he conducted his business.

More Interesting Stories to Check Out

NBC News: The FBI is probing whether Egyptian intelligence played a role in Bob Menendez’s alleged bribery scheme.

Molly Jong-Fast at Vanity Fair: Let’s Not Sleepwalk Into Another Trump Presidency.

Amanda Marcotte at Salon: President Drink Bleach says what? Trump now claims he beat George W. Bush and Barack Obama.

CNN: Commander Biden bites another Secret Service agent, the 11th known incident.

The New Republic: The Sick, Racist Message Behind Why Trump Chose That Particular Gun Store.

The Hill: FCC chair proposes reinstating Obama-era net neutrality rules.

The Messenger: Trump Adds Two Attorneys to Criminal Defense Team.

The Daily Beast: UAW Leader Has No Desire at All to Talk to Trump in Michigan.

Have a great Wednesday everyone!!