Last night, the New York Attorney General’s civil fraud case granted what can be referred to as a financial death penalty to Donald Trump’s company. According to the ruling by Justice Arthur Engoron, the former president, his organization, his two eldest sons, as well as several executives are held liable for persistent fraudulent acts. The ruling orders dissolution and receivership for the related business entities and the corporate subsidiaries implicated.
Donald Trump’s reaction to the judgement, expressed via his social media account Truth Social, portrays it as a radical attack against him and his family, demanding an appellate court to reverse the judgement. However, no legal help appears forthcoming for Trump.
The long history of false financial statements by Trump was key to the lawsuit. Alongside exaggeration of his New York property’s square footage, Trump inflated the valuation of his assets when negotiating with lenders. These manipulations were deemed harmful to the legitimacy of the financial market, adversely affecting potential borrowers and actual lenders. The conduct of Trump’s lawyers was also criticized, as they were seen to have repeatedly used fallacious arguments and theories.
Despite the court’s ruling, Trump and his children continue to downplay the decision, suggesting the judge undervalued Trump’s Mar-a-Lago club. For instance, Trump suggested the judge valued his estate as low as $18 million, while the property could possibly be worth nearly a hundred times more. In reality, Trump had challenged the county assessor’s valuations of the property in an attempt to reduce his tax liabilities. He also took a conservation easement on the property, a fact omitted from his financial statements.
If an appeals court does not intervene, these properties might go for sale and reveal their true worth. The recent involvement of Jared Kushner, Trump’s son-in-law, in a large investment deal with Saudi Arabia floats the speculation of a financial bailout for the former president’s family.
More detailed information can be found at the original article by Liz Dye on Above the Law.