New York Judge Rules Against Trump in Fraud Case, Impacts Future Business Prospects
In a significant blow to former U.S. President Donald Trump, a New York judge has found him and his family business guilty of fraudulently inflating the value of properties and other assets. This ruling could have severe consequences for Trump’s ability to conduct future business in the state of New York. The scathing decision was made by Justice Arthur Engoron of the New York state court in Manhattan, and it paves the way for the state Attorney General, Letitia James, to establish damages in a scheduled trial on October 2.
Justice Engoron’s ruling also included ordering the cancellation of business certificates for the Trump Organization and other corporate defendants. Additionally, he appointed a receiver to oversee their dissolution. In his decision, Engoron highlighted how Trump, his adult sons Donald Jr. and Eric, and other defendants fabricated valuations and inflated Trump’s net worth to suit their business needs. He described their actions as living in a fantasy world and not the reality.
The judge also criticized the defendants’ lawyers for presenting preposterous legal arguments and supporting their clients’ obstreperous conduct. However, lawyers for Trump and the other defendants have not yet commented on the ruling.
Trump, the current frontrunner for the 2024 Republican presidential nomination, has consistently denied any wrongdoing and has labeled James’ case and other lawsuits against him as politically motivated witch hunts.
The lawsuit against Trump was filed by Attorney General James in September 2022, accusing him, his adult children, and the Trump Organization of lying for over a decade about asset values and net worth to defraud banks and insurers for better terms. James has alleged that Trump inflated his net worth by as much as $2.23 billion or even $3.6 billion on annual financial statements.
Justice Engoron supported James’ claim by establishing liability for false valuations of numerous properties, including Trump’s Mar-a-Lago estate in Florida, his penthouse apartment in Trump Tower, and various office buildings and golf courses. The judge specifically called out Trump’s overvaluation of his penthouse, which he claimed was 30,000 square feet when it is actually much smaller. This resulted in an inflated value of up to $207 million.
Engoron criticized Trump for baseless defenses presented in a deposition and stated that his claim of finding a buyer from Saudi Arabia to pay any suggested price was unfounded and without merit.
This ruling comes after a state appeals court ruled that some of the claims made by James were too old due to statutes of limitations expiring. However, the appeals court did dismiss one defendant, Ivanka Trump, from the case. Trump is also dealing with various other legal battles, including charges related to his attempt to overturn the 2020 election, hoarding classified materials, and alleged cover-ups of hush money payments to a porn star.
It is important to note that while Engoron’s decision does not automatically lead to the start of the civil trial against Trump on January 2023, it is expected that the appeals court will rule on Trump’s request to delay the trial.
Overall, this ruling against Donald Trump and his family business in the fraud case could have far-reaching implications for his future business prospects in New York. As the trial proceeds, it remains to be seen how this legal battle will ultimately unfold and affect Trump’s political aspirations.
