A New York judge found Donald Trump and his adult sons responsible for fraud and revoked the business certification of the Trump Organization, a bombshell decision that puts the former president’s financial empire in imminent danger as he seeks reelection.
Trump’s claims that he didn’t exaggerate the valuations of his golf courses, hotels, and houses at Mar-a-Lago and Seven Springs on financial accounts were completely rejected by Judge Arthur Engoron’s decision on Monday.
“In defendants’ world: rent-regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air; a disclaimer by one party casting responsibility on another party exonerates the other party’s lies,” the judge wrote.
“That is a fantasy world, not the real world,” Engoron said.
The decision was made in response to the complaint filed by Letitia James, the attorney general of New York, who is requesting $250 million in damages, a prohibition against the Trumps serving as executives of businesses in New York, and a five-year suspension of the company’s ability to conduct business.
The full scope of Engoron’s decision – or how it will play out – is still unknown as a trial on the amount of damages owed is scheduled to start next week.
The Trump Organization, which has been so closely associated with the former president’s personal brand, suffered a significant setback when the judge revoked the business certifications of the Trump organizations who are defendants in the case.
To “manage the dissolution” of the corporate entities, a receiver will be appointed. Two New York assets are involved in the legal dispute: the Trump family estate at Seven Springs and the office building at 40 Wall Street.
There are still unanswered questions about how the receiver would liquidate the properties, whether the decision would apply to locations outside of New York state, such as Mar-a-Lago, and whether the Trumps could move the New York-based assets into a new corporation established elsewhere.
In a statement, Trump denounced the decision and charged Engoron with “doing James’ bidding.”
“It is a great company that has been slandered and maligned by this politically motivated Witch Hunt. It is very unfair, and I call for help from the highest Courts in New York State, or the Federal System, to intercede. THIS IS NOT AMERICA!” Trump said.
Christopher Kise, the attorney for Trump, characterized the decision as “completely disconnected from the facts and governing law.”
He added: “While the full impact of the decision remains unclear, what is clear is that President Trump and his family will seek all available appellate remedies to rectify this miscarriage of justice.”