A New York judge has made a significant ruling against Donald Trump, judge stated that he consistently misrepresented his wealth to banks and insurers by hundreds of millions of dollars. This decision addresses a key allegation brought forward by New York’s attorney general in her civil lawsuit against the former president. The judge, Justice Arthur Engoron of the New York state court in Manhattan, asserted that the documents presented in the case unmistakably contain fraudulent valuations employed by the defendants in their business dealings.
This signals a significant setback for Mr. Trump as the case is scheduled to start trial next Monday. In response to the judge’s decision, an attorney for Mr. Trump criticized it as “a miscarriage of justice.”
New York Attorney General Letitia James initiated the lawsuit against Mr. Trump in September, accusing him, along with his two adult sons and the Trump Organization, of providing false information regarding his net worth and asset values between 2011 and 2021. They allegedly fabricated business records and financial statements to obtain favorable terms for bank loans and insurance arrangements, as well as to reduce tax payments.
The forthcoming trial will address the remaining six claims in the lawsuit, with Ms. James seeking $250 million in penalties and a prohibition on Mr. Trump conducting business in New York State. The trial is scheduled to commence on October 2nd and is anticipated to extend until at least December.
During the pre-trial summary judgment phase, Ms. James requested a ruling on her claims to expedite the trial, while Mr. Trump’s defense team argued for the dismissal of the lawsuit. They contended that his actions did not harm the public and that the loans in question belonged to a bygone era.
Donald Trump , despite the decision of judge , has denied any wrongdoing and characterized the case as another politically motivated “witch hunt.” He accused the judge of showing a “highly politicized” bias. His lawyers, in a statement, asserted that the ruling overlooked fundamental legal, accounting, and business principles.
As part of this ruling, the court has instructed the Trump Organization to cancel its New York business licenses and recommend independent monitors within ten days to oversee this process. While this decision will not dissolve Mr. Trump’s company, it could result in his relinquishing control over iconic New York properties such as the Trump Tower and the Trump Building at 40 Wall Street.
Additionally, Judge Engoron declined the Trump team’s request to dismiss the case and imposed fines of $7,500 each on five Trump attorneys for reiterating arguments already rejected by the court.
During the court proceedings, an attorney from Ms. James’ office asserted that Mr. Trump had endorsed statements that exaggerated the valuations provided by appraisers hired by his company. In contrast, Trump attorney Christopher Kise contended that such actions showcased Mr. Trump’s financial acumen and ability to discern value where others did not.
However, the judge, in his summary judgment, declared that Mr. Trump’s conduct exceeded mere self-aggrandizement and that he and his company had systematically misled about his financial affairs. The judge wrote, “In defendants’ world, rent-regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air. That is a fantasy world, not the real world.”