September 27, 2023
NEW YORK, USA– Former President Donald Trump has been found liable for business fraud by a New York judge. The ruling, which came as part of a civil case brought against Trump and his family business, alleges that he engaged in fraudulent activities for years, including misrepresenting his wealth by hundreds of millions of dollars.
The case, initiated by New York Attorney General Letitia James, accused Trump, his two adult sons, and the Trump Organization of inflating property values by over $2 billion in order to secure more favorable terms on loans, insurance deals, and reduce tax obligations.
The presiding judge, Arthur Engoron, issued a scathing decision on Tuesday. He determined that Trump had overvalued his Mar-a-Lago property by an astounding 2,300% in one financial statement and falsely claimed that his penthouse at Trump Tower in New York was three times its actual size. Judge Engoron described Trump’s assertion that the penthouse’s size was subjective as “absurd” and a clear case of fraud. This ruling resolves the central claim of fraud in the lawsuit, leaving six remaining claims to be addressed during the upcoming trial, scheduled to commence on October 2 and possibly extend into December.
In his ruling, Judge Engoron stated, “the documents here clearly contain fraudulent valuations that defendants used in business.” He emphasized that these actions constituted a departure from reality and added, “That is a fantasy world, not the real world.”
Furthermore, Judge Engoron ordered the cancellation of business certificates that enable some of Trump’s companies, including the Trump Organization, to operate in New York. Although this does not dissolve his company, it may lead to the relinquishment of control over prominent New York properties such as Trump Tower and the Trump Building at 40 Wall Street.
The judge’s decision also included a fine of $7,500 for each of the five Trump attorneys who made what he called “preposterous” arguments that had already been rejected by the court. This, he noted, contributed to their clients’ “obstreperous” conduct.
In response to the ruling, lawyers representing Donald Trump expressed their intention to appeal, characterizing the decision as “a miscarriage of justice.” Trump himself decried the case as yet another “witch hunt” and accused the judge of being “highly politicized.”
This legal setback is one of several legal challenges Trump faces as he explores the possibility of a presidential election rematch with President Joe Biden next year. Currently, he is confronting 91 felony charges across four criminal cases, maintaining his plea of not guilty.
