Former US President Donald Trump could be forced out of the New York real estate industry, dealing a potentially devastating blow to the real estate empire that made him famous long before he won the White House.
President Trump is suspected of securing loans with false financial statements over several years. After a heated trial that lasted more than three months, a Manhattan court is expected to announce its decision this week.
The New York fraud scandal comes despite Trump inching closer to winning the Republican presidential nomination with decisive victories in the Iowa caucuses and New Hampshire primary earlier this month. This is just one of several lawsuits that are heating up.
Here's what we know about this civil lawsuit and how it could affect President Trump's campaign.
What exactly does that mean?
New York Attorney General Letitia James filed a civil suit against the former president, the Trump Organization, and executives of their companies on September 21, 2023, but the investigation into the former president's business dealings remains open for approximately This has been going on for three years, but
James said in his filing that Trump and Trump Organization associates, including his children Ivanka, Eric and Donald Jr., “knowingly and intentionally ” accused the company of creating more than 200 inflated financial appraisals to help the company obtain favorable loans. Up to $250 million comes from banks and insurance companies.
These actions violate New York state anti-fraud laws, James wrote in the lawsuit, which seeks a $250 million fine against Trump.
Trump Organization executives Allen Weisselberg and Jeffrey McConney were also named as defendants, as well as companies and organizations belonging to Mr. Trump, including 40 Wall Street, the skyscraper in Manhattan's financial district. Trump's son Donald Trump Jr. and Eric Trump are co-defendants in the case.
What did the judge say about Trump?
Manhattan Supreme Court Chief Justice Arthur Engoron will issue a summary judgment on September 27, 2023, which will essentially resolve the main claims of the lawsuit, that Trump will significantly inflate the value of his real estate to lenders. He was found to have committed a long-standing fraud. For example, his Mar-a-Lago property was found to have been inflated by approximately 2,300 percent of its actual value in one statement.
In addition to dissolving several companies owned by the former president, Judge Engoron ordered the Trump Organization's operating license revoked and appointed an independent monitor to oversee the company.
Trump has denied wrongdoing and has appealed the initial ruling. In October, the Court of Appeals temporarily blocked the business dissolution portion of the ruling. Trump's lawyers argued that about 1,000 employees could be affected. James' team said it was prepared to suspend the execution pending a final decision.
In a follow-up hearing to rule on other claims in the attorney general's lawsuit, Trump's lawyers asked for the case to be dismissed, arguing it was politically motivated. that his accountant was responsible for false financial statements; and that no specific individual or group has been harmed by the statement.
Could this affect President Trump's political activities?
President Trump's campaign has been grappling with civil litigation and the myriad legal challenges facing the Republican front-runner ahead of November's presidential election.
The former president appears in court, where he is not legally required to attend, and gives an impassioned speech to rally supporters of the opposition seeking to block his re-election. is also targeted.
He also used these court appearances to slam state officials. President Trump accused New York Attorney General James of targeting him for her politics, calling her a “political hack” who won the post by promising to go after her.
Despite the judge's refusal, Trump addressed the court at the conclusion of his fraud trial on January 11, calling the case “a fraud against me.”
“I'm innocent, but I have a situation where I'm being persecuted by someone who is running,” Trump said, referring to James, a Democrat who tried to run for New York governor in the 2022 election but later withdrew. he said. . “They wanted to make sure I never won again,” he added.
Throughout the three-month trial, Mr. Trump claimed that Mr. Engoron was a biased “Trump hater” and made insulting comments to his supporters about the judge. He also attacked Alison Greenfield, Engoron's legal secretary, on social media platform Truth Social, calling her “politically biased and out of control.”
Judge Engoron imposed a gag order on the former president and fined him $15,000 for the violation.
Is there a possibility that Mr. Trump will face criminal penalties?
Such civil actions typically impose financial penalties or prohibitions called injunctions, as opposed to criminal actions, which often result in prison sentences.
James' lawsuit against Trump recommended that the former president and his children be stripped of their leadership roles in the Trump Organization and that Trump and his companies be prohibited from buying real estate in New York. Next 5 years.
Additionally, the Attorney General recommended that President Trump and the Trump Organization be barred from accessing any loans for five years and that an independent monitor and trustee be appointed for the Trump Organization.
As Judge Engoron's final ruling approaches, it could complement previous rulings that some of Trump's companies would be stripped of their licenses, some would be dissolved, and others would be subject to independent oversight. expensive.
