In a significant ruling, Judge Arthur Engoron has found Donald Trump and his company liable for fraud, stating that they consistently misstated the true values of multiple real estate properties over several years. This misrepresentation led to a gross overstatement of Donald Trump’s net worth by billions of dollars. The judgment came in response to a lawsuit filed by the New York Attorney General’s Office.
Judge Engoron’s ruling also includes the cancellation of the New York business certificates of Trump, the Trump Organization, and other defendants, including Donald Trump’s sons. He indicated his intention to appoint an independent receiver to oversee the dissolution of the corporate entities whose business certificates were revoked. It is unclear whether this decision will require the Trump Organization and related entities to cease all business activities in New York permanently or if they could potentially reconstitute their businesses in the future.
The lawsuit filed by the New York Attorney General’s Office seeks $250 million in damages and aims to bar Donald Trump and his adult sons from conducting business in the state. The judge’s ruling found that Trump consistently provided false and misleading valuations of real estate assets in statements to insurers and banks, thereby inflating his net worth significantly.
Judge Engoron pointed out that Trump’s valuations were at odds with independent professional appraisals and constituted fraudulent valuations that Trump used in business transactions. The ruling also highlighted Trump’s false claims about the size and value of his properties.
Despite the judge’s decision, the lawsuit is ongoing, with remaining claims set to be addressed at a nonjury trial starting soon. Trump is separately facing 91 felony charges in four criminal cases, including efforts to overturn the 2020 election results and retention of classified government documents at his Mar-a-Lago club.
Donald Trump, who is considered a front-runner for the 2024 Republican presidential nomination, has pleaded not guilty to all of the charges. His legal team expressed outrage at the judge’s decision, and it remains to be seen how this ruling will impact Trump’s business interests and legal challenges.
