Donald Trump could lose control of Trump Tower, his Westchester golf club and other New York properties after a judge ruled he had lied about his wealth for years and committed fraud by submitting false appraisals to secure loans.
New York Judge Arthur Engoron ruled that Trump committed years of fraud while building the real estate empire that catapulted him to fame and the White House, after prosecutors charged that he inflated real estate valuations at lenders and sold them to the tax authorities had reduced.
The decision could end the former president’s control of his flagship Trump Building at 40 Wall Street in Lower Manhattan and his iconic Trump Tower residence.
Trump could also lose his family estate and his golf club in Westchester County.
Donald Trump could lose control of his New York properties, including his Trump Tower
The decision means that Trump would still own the properties, but they would be placed in receivership.
He would no longer be able to sell assets or use them to secure loans. If they are sold in court, Trump would see no return until the debts and obligations are paid.
Experts call this decision a ‘corporate death penalty’.
The former president denounced the decision, telling Truth Social it was “a very sad day for the New York State System of Justice.”
“Today’s ruling on a company that has done fantastic work for New York State ignores the fact that murder and all other forms of violent crime have reached record levels in New York State,” he wrote.
“Can you imagine judging me for doing perfect business and still letting people rage on the sidewalks of New York?
“This is the judicial behavior that forces thousands of businesses to flee New York for other locales, while virtually none return to the city or state.”
Judge Engoron’s ruling was a victory for New York Attorney General Letitia James in her lawsuit against Trump. His decision effectively concluded that no trial was necessary to establish that the former president had fraudulently secured favorable terms on loans and insurance contracts.
James has argued that Trump inflated the value of his properties by as much as $2.2 billion and is seeking a fine of about $250 million.
The judge’s order will not dissolve Trump’s company, but will impact its operations. Trump can appeal.
The trial will determine how much punishment Trump will receive.
But the order did cancel corporate certificates that allow some Trump properties to operate in New York, which could affect his control of those prominent Trump-branded properties.
Trump could also lose control of his signature business establishment: 40 Wall Street
Trump’s golf club in Westchester, NY, is also at risk
“Today’s ruling on a company that has done tremendous work for New York State fails to acknowledge the fact that murder and all other forms of violent crime have reached record levels in New York State,” Donald Trump said. the pronounciation.
The civil trial will begin in October and could last until the end of the year as Trump continues to lead the Republican presidential nominee.
It comes as Trump faces multiple criminal charges in multiple jurisdictions related to his election efforts and other matters.
James filed a lawsuit last year alleging numerous acts of fraud. Lawyers representing Trump and his company, as well as his adult children, asked the judge to dismiss the case for summary judgment.
James discovered that the former president and his company deceived banks, insurers and others by massively overvaluing his assets and exaggerating his wealth with the paperwork used in closing deals and securing financing.
She said he has increased valuations by as much as $2 billion, boosting the value of signature assets including the Mar-a-Lago club where he now resides and his Manhattan penthouse apartment in Trump Tower.
The decision, days before the start of a non-jury trial in Attorney General Letitia James’ lawsuit, is the strongest rejection yet of Trump’s carefully coiffed image as a wealthy and savvy real estate mogul turned political powerhouse.
In addition to merely bragging about his wealth, Trump, his company and key executives repeatedly lied about it in his annual financial statements, reaping rewards such as favorable loan terms and lower insurance premiums, Engoron found.
The tactic crossed a line and broke the law, the judge said, rejecting Trump’s claim that a disclaimer on the financial statements would absolve him of any wrongdoing.
Prosecutors in Manhattan had considered filing a criminal case over the same conduct but declined to do so, leaving James to sue Trump and seek penalties that could disrupt his and his family’s ability to do business in the state.
Engoron’s ruling, in a phase of the case known as summary judgment, resolves the main claim in James’ lawsuit, but six others remain.
Trump has repeatedly attacked Letitia James, New York’s secretary of state, accusing her of bias against him
Trump’s lawyers had asked the judge to dismiss the case, which he denied.
They argue that James was not legally allowed to file the lawsuit because there is no evidence that the public has been harmed by Trump’s actions. They also argued that many of the allegations in the lawsuit were barred by the statute of limitations.
Trump has long accused James and other prosecutors after him of bias.
The ruling came in a case in which Trump again made potentially damaging statements during a statement.
Trump, who was questioned, compared his golf and real estate empire to the Mona Lisa and other priceless works of art.
Trump made this extraordinary claim when describing his decision to hand over control of his company to his adult sons Don Jr. and Eric during his tenure as president — as New York AG Letitia James sat across from him in a Manhattan courthouse for a deposition.
“We have the Mona Lisas of property,” Trump told the prosecutor in the April deposition released Wednesday.
Then he bragged about his golf course in Turnberry, Scotland. ‘I could sell that. That’s like selling a painting. A painting on the wall that sells for $250 million,” he continued.
“I have great assets,” Trump gushed – raving about Mar-a-Lago and his property at 40 Wall Street, which he believes is “the best location,” he told prosecutor Kevin Wallace in James’ office.
Prosecutors allege he has increased his net worth by between $812 million and $2.2 billion every year over the past decade. James claims Trump inflated his valuations as he sought loans. Trump’s lawyers are asking a judge to dismiss the case, calling it a “crusade” over long-ago loans.
“You have no case and you need to drop this case,” Trump told James.