'Cash crunch' drove Trump to fraud, state alleges
The competing obligations between the costs of Donald Trump's 2016 presidential campaign and his business obligations created a "cash crunch" at the Trump Organization that motivated the former president to commit fraud, state attorney Kevin Wallace argued during his summation.
Wallace's theory about the motivation for the alleged fraud, which he articulated for the first time, attempted to explain Trump's motive for the alleged conduct as well as justify levying a fine against Trump in order to regulate the marketplace.
According to Wallace, the hundreds of millions of dollars saved by the Trump Organization through fraud allowed the company to "stay afloat" during a major "cash crunch" during the 2010s.
During the first half of the decade, the Trump Organization spent roughly $775 million to renovate properties including its Doral and Turnberry golf courses, as well as the Old Post Office building in Washington, D.C., Wallace said. The idea that the company could have funded these expenses with cash alone was a "fantasy," according to Wallace.
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"By the time you get to 2017, Mr. Trump was becoming president, and the company was getting low on cash," Wallace said. Faced with the chance of a negative cash flow, the company opted to embrace fraud, according to Wallace.
"They didn't have to choose between their priorities," Wallace said about the company's business expenses and Trump's presidential campaign.
Trump attorney Chris Kise objected to the argument, suggesting the theory was nothing more than conjecture -- which prompted a heated exchange with Wallace.
"Chris. Stop. We didn't interrupt the defendants' presentation at all," Wallace shouted while facing Kise.
"I think I agree with Mr. Kise," Judge Engoron responded, but he allowed the presentation to continue.