A judge in New York finds Donald Trump accountable for fraud
A judge determined that Donald Trump and his organization had "repeatedly" broken state fraud statutes, threatening his New York business empire.
Justice Arthur Engoron ordered that Trump's New York companies' business certificates be "canceled" and that three potential independent receivers be appointed within 10 days to "to manage the dissolution of the canceled" limited liability companies associated with Trump and the Trump Organization on Tuesday as part of his civil case ruling.
Legal experts say the order could strip Trump of his authority to make strategic and financial decisions over his key properties in the state, from his flagship Manhattan commercial property at 40 Wall Street to his Westchester County estate Seven Springs, if not appealed.
Trump's attorney and Save America PAC legal spokesperson Alina Habba claimed the judge's ruling is "fundamentally flawed at every level" and they will "immediately appeal" it.
The ruling names The Trump Organization, DJT Holdings LLC, 40 Wall Street LLC, Seven Springs LLC, and others.
Engoron agreed with New York Attorney General Letitia James' claim in her suit against Trump and the Trump Organization a year ago that Trump and his company provided banks with financial statements that misrepresented his wealth by $3.6 billion.
Engoron found that Trump and his companies overvalued numerous properties by hundreds of millions. A Palm Beach County tax assessor valued Trump's Mar-a-Lago club at $18 million between 2011 and 2021, which influenced his local property taxes. Trump's annual financial records valued the property at $714 million during those years.
In a hearing on Wednesday, Trump lawyer Christopher Kise argued that Engoron's ruling raises difficult questions, such as which properties or businesses the Trump Organization may be forced to sell or dissolve.
In his judgment, the judge noted that former U.S. District Court judge Barbara S. Jones will continue as independent monitor of the Trump Organization. Jones may also oversee Trump's company dissolution.