In August of 2022, New York Attorney General Letitia James filed a
civil fraud suit against Donald Trump, his eldest children, their family business, and Allen Weisselberg, the CFO of the Trump Organization. The complaint sought the disgorgement of $250 million based on allegations that these parties had defrauded lenders and tax authorities, among other business malpractices. The suit also called for the Supreme Court Justice Arthur Engoron to compel the sale of Trump Organization’s assets.
In a significant development in September 2023, the court
ordered the Trump entities to be put into receivership and sold. This order was consequently held in abeyance on appeal, but this didn’t halt the progression of the trial on the matter of the amount to be disgorged by Trump for his alleged fraudulent actions.
As the case continues, Trump’s lawyers
assert that the Attorney General has failed to meet her burden of proof on materiality, intent, conspiracy, and right of disgorgement under New York law. They argue that no bank was harmed, and therefore the damages should amount to zero.
From the plaintiff side, the Attorney General has updated her figures and now demands a $370 million disgorgement, with interest. This amount includes saved interest on four commercial real estate loans, profits from property sales, and bonuses paid to Weisselberg and the Trump Organization’s Controller, Jeff McConney.
Judge Barbara Jones, who was assigned as monitor after Trump was caught attempting to relocate his assets from New York, has been requested by the AG to remain to oversee any potential further fraudulent activities during the appeal. The motion also addressed further injunctive action, seeking a lifetime ban barring Trump, Weisselberg and McConney from participation in any New York real estate enterprise or other corporations.
As the trial continues, the discourse has ramped up outside of the courtroom. Trump has continued to share his perspectives on the case publicly, most recently
leveraging social media to share his critique of the suit. This is a case to watch closely, as it may significantly shape the landscape of white-collar crime prosecution and corporate oversight in the state of New York and potentially across the country.