Donald Trump “repeatedly” misrepresented his wealth to banks and insurers by hundreds of millions of dollars.
Trump found liable for fraud: The ruling resolves the main issue raised by the attorney general of New York in her civil lawsuit against the former president.
The judge stated that “the documents here clearly contain fraudulent valuations that defendants used in business.”
It is a significant setback for Mr. Trump ahead of the trial’s start on Monday.
In a statement on Tuesday night, a lawyer for Mr. Trump referred to the judge’s ruling as “a miscarriage of justice”.
Last September, Attorney General Letitia James filed a lawsuit against Mr. Trump, alleging that he, his two adult sons, and the Trump Organisation had lied about the value of their father’s assets between 2011 and 2021.
In order to obtain better terms on bank loans and insurance contracts, as well as to pay less tax, Ms. James said that the defendants produced fake business records and financial statements.
She will seek $250 million in penalties and a ban on Mr. Trump conducting business in his home state in the trial that will now settle the six unresolved allegations in her lawsuit.
The non-jury trial is schedule to start on October 2 and will extend through at least December.
Ms. James had sought Justice Arthur Engoron of the New York state court in Manhattan to rule on her claims during a pre-trial phase of the case known as summary judgement.
She suggested that establishing some facts as undisputed would expedite the trial.
“Trump Organization Faces Legal Setback: Business Licenses to Be Cancell”
Meanwhile, a request for the dismissal of the lawsuit was made by Mr. Trump’s defense attorneys, who stated that neither the public nor Mr. Trump had been injured by his acts, and that the loans in question were made many years ago.
On Tuesday, Mr. Trump denied any wrongdoing and accused a biased prosecutor of launching a political “witch hunt” in the New York case. He also accused the judge of being “highly politicized.”
His attorneys said that the ruling disregarded “basic legal, accounting, and business principles” in a statement.
In accordance with the ruling on Tuesday, the Trump Organisation must cancel its New York business licences and nominate impartial monitors to oversee the process within 10 days.
For the New York native who now resides in Florida, that is a legal setback.
Although the judge’s decision won’t dissolve his business, it might put an end to his authority over iconic New York buildings like the Trump Tower and the Trump Building at 40 Wall Street.
“Judge Rejects Trump’s Plea to Dismiss Lawsuit, Imposes Penalties on Attorneys”
On Tuesday, Judge Engoron also rejected the Trump team’s plea to have the lawsuit dismissed and separately penalised five Trump attorneys each $7,500 for making arguments that the court had already rejected.
An attorney representing Ms. James’ office said in court on Friday that the former president had given his approval to claims that exaggerated the appraisals provided by the assessors his company employed.
However, Mr. Trump’s lawyer Christopher Kise claimed that by doing so, he demonstrated his “investment genius” and “mastery of finding value where others see nothing.”
However, the judge stated in his summary judgement that Mr. Trump’s actions went beyond merely boasting about his wealth and that he and his corporation had consistently deceived about his financial circumstances.
According to the defendants, “restrictions can vanish into thin air; rent-regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land,” he wrote.
That is not the real world; it is a fantasy world.
According to the judge, Mr. Trump:
- Overvalued Mar-a-Lago by 2,300% in one financial statement
- Overvalued his penthouse at Trump Tower in New York by claiming that it was three times its actual size
- “They made an ‘absurd’ argument that the calculation of the penthouse’s area was subjective. “The ruling concluded that a real estate developer assessing his own living space over decades had made such a significant discrepancy, which can only be seen as fraudulent.”
Mr Trump is still seeking to delay the trial in New York and has sued the judge.
This week, an appeals court will make a decision regarding that lawsuit. If it finds against him, Mr. Trump will have to proceed with the remaining judicial proceedings.
“He faces several court challenges as he seeks reelection to the White House and a rematch with President Joe Biden next year.”
“He currently leads in the Republican nomination race and is also facing prosecution on 91 felony charges spread over four cases.” In those instances, he entered a not guilty plea.