In a major blow to former President Donald Trump, a Manhattan judge has found him liable for wide-scale fraud. The judge ruled that Trump had been lying about his net worth for years, inflating it in order to deceive banks and insurers. This decision comes just days before the start of a sweeping case against Trump's family-run real estate empire by New York Attorney General Tish James.
The judge, Arthur Engoron, found Trump and his real estate company liable for fraud, stating that they had misstated the true values of multiple properties and grossly overstated Trump's net worth by billions of dollars. The lawsuit brought by James accused Trump of lying about the value of various assets, including skyscrapers and golf courses, to obtain benefits such as favorable loan terms and lower insurance premiums.[0]
James alleged that Trump had exaggerated his net worth by as much as $3.6 billion in one year alone.[0] She cited numerous examples of how Trump had inflated the value of his assets, accusing him of inflating his net worth by between $812 million to $2.2 billion each year for over a decade.[1]
As part of his ruling, Judge Engoron imposed fines against five of Trump's attorneys for filing “indefensible” and frivolous legal arguments.[2] He also ordered sanctions against the attorneys for making previously rejected arguments in court filings.[3] Engoron stated that the documents presented in the case clearly contained fraudulent valuations that defendants used in business.[4]
The ruling also had significant consequences for Trump's business operations. Engoron canceled the business certificates of all the defendants, including the Trump Organization itself, as well as various entities controlled or beneficially owned by Trump and his adult sons.[5] This essentially stripped Trump of the ability to run his businesses in New York.[6]
Unsurprisingly, Trump's attorneys vehemently disagreed with the judge's decision. They called it “outrageous” and claimed it was disconnected from the facts and governing law.[7] They vowed to appeal the ruling and seek all available appellate remedies to rectify what they saw as a miscarriage of justice.[6]
Despite the backlash from Trump's legal team, the ruling was seen as a significant victory for New York Attorney General Letitia James. She filed the civil fraud lawsuit against Trump and his companies last year, alleging a scheme over 10 years to engage in fraudulent practices that benefited the Trumps and the company to the tune of $250 million.[8]
James celebrated the judge's decision, stating that it confirmed her allegations of financial fraud by Trump and the Trump Organization. She expressed her anticipation for presenting the rest of her case at trial.
This ruling marks a critical moment in the legal battles surrounding Trump's business practices and raises questions about the future of his real estate empire. As the case moves forward, the consequences for Trump and his family could be far-reaching, potentially impacting their financial and political standing. The outcome of this trial will be closely watched as it unfolds in the coming days and weeks.
0. “This Stunning Court Ruling Could Destroy the Trump Organization” The New Republic, 26 Sep. 2023, https://newrepublic.com/post/175780/new-york-court-ruling-trump-organization-fraud
1. “Donald Trump committed fraud by exaggerating wealth, judge says” Axios, 26 Sep. 2023, https://www.axios.com/2023/09/26/trump-fraud-ny-exaggerated-wealth
2. “Judge rules Trump engaged in repeated fraud, effectively deciding central question in $250M civil trial” ABC News, 26 Sep. 2023, https://abcnews.go.com/Politics/donald-trump-submitted-fraudulent-valuations-assets-secure-loans/story?id=103508205
3. “Trump and company liable for fraud in New York lawsuit, judge rules” CNBC, 26 Sep. 2023, https://www.cnbc.com/2023/09/26/trump-and-company-liable-for-fraud-in-new-york-lawsuit-judge-rules.html
4. “Trump Defrauded Lenders and Must Dissolve Businesses, Judge Rules – Mother Jones” Mother Jones, 26 Sep. 2023, https://www.motherjones.com/politics/2023/09/trump-fraud-new-york-supreme-court-close-businesses
5. “Trump fraudulently inflated his net worth by up to $2.2 billion, New York judge rules” POLITICO, 26 Sep. 2023, https://www.politico.com/news/2023/09/26/trump-fraud-trial-inflate-net-worth-00118269
6. “Donald Trump found liable for fraud claim brought by New York attorney general” New York Daily News, 26 Sep. 2023, https://www.nydailynews.com/2023/09/26/donald-trump-liable-fraud-charge-letitia-james/
7. “New York judge rules Trump committed fraud and lied about net worth for years” NBC News, 26 Sep. 2023, https://www.nbcnews.com/politics/donald-trump/new-york-judge-rules-trump-committed-fraud-lied-net-years-rcna117504
8. “Donald Trump Found Liable For Defrauding Banks, New York Judge Rules; Defense Attorney Calls Decision “Miscarriage Of Justice” – Update” Deadline, 26 Sep. 2023, https://deadline.com/2023/09/donald-trump-found-liable-for-fraud-new-york-1235556777
