In the first phase of the New York State $250 million civil case ?
The judge, who Trump foolishly went after personally, has ruled on the basic premise that the New York Attorney General has changed….
The full trial is scheduled to start next week…
Judge Rules Trump Committed Financial Fraud
“A judge has ruled that Donald Trump committed fraud for years while building the real estate empire that catapulted him to fame and the White House,” the AP reports.
“Judge Arthur Engoron, ruling Tuesday in a civil lawsuit brought by New York’s attorney general, found that the former president and his company deceived banks, insurers and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing.”
“The decision, days before the start of a non-jury trial in Attorney General Letitia James’ lawsuit, is the strongest repudiation yet of Trump’s carefully coiffed image as a wealthy and shrewd real estate mogul turned political powerhouse.”
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A more detailed look at this…
The surprising decision by Justice Arthur F. Engoron is a major victory for Attorney General Letitia James in her lawsuit against Mr. Trump, effectively deciding that no trial was needed to determine that he had fraudulently secured favorable terms on loans and insurance deals.
Ms. James has argued that Mr. Trump inflated the value of his properties by as much as $2.2 billion and is seeking a penalty of about $250 million in a trial scheduled to begin as early as Monday.
Justice Engoron wrote that the annual financial statements that Mr. Trump submitted to banks and insurance companies “clearly contain fraudulent valuations that defendants used in business.”
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While the trial will determine the size of the penalty, Justice Engoron’s ruling granted one of the biggest punishments Ms. James sought: the cancellation of business certificates that allow some of Mr. Trump’s New York properties to operate, a move that could have major repercussions for the Trump family business….
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Understand New York State’s Civil Case Against Trump
An empire under scrutiny. Letitia James, New York State’s attorney general, has been conducting a yearslong civil investigation into former President Donald Trump’s business practices, culminating in a lawsuit that accused Trump of “staggering” fraud. Here’s what to know:
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The decision could terminate his control over a flagship commercial property at 40 Wall Street in Lower Manhattan and a family estate in Westchester County. Mr. Trump might also lose control over his other New York properties, including Trump Tower in Midtown Manhattan and his golf club in Westchester.
The order will not dissolve Mr. Trump’s company itself, which is a collection of hundreds of entities, but the decision could nonetheless have a sweeping impact on the company’s New York operations. If Justice Engoron’s decision is not reversed by an appeals court, it could shut down an entity that employs hundreds of people working for him in New York, effectively crushing the company….