A New York judge ruled Trump committed fraud by overvaluing his assets
The civil trial arising from New York Attorney General Letitia James‘ lawsuit against former President Trump and the Trump Organization is scheduled to commence in New York City. This non-jury trial will be presided over by Judge Arthur Engoron and is slated to begin on Monday in Manhattan. The trial proceeds despite a rejection by a New York State Appeals Court of the 2024 GOP primary frontrunner’s request to postpone the civil trial.
Dozens of possible witnesses are listed for the trial, including the former president himself. In a significant development last week, Judge Engoron ruled that Trump and the Trump Organization engaged in fraudulent activities during the construction of his real estate empire. This fraud involved deceiving banks, insurers, and other parties by overvaluing assets and exaggerating Trump’s net worth on paperwork used for deals and financing.
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As the trial unfolds, it is expected to shed further light on these allegations and the extent of the purported fraud committed by Trump and his organization during the expansion of their real estate holdings.
Engoron’s ruling comes in the wake of James’ lawsuit against Trump, his children, and the Trump Organization; In this lawsuit, James alleges that Trump “inflated his net worth by billions of dollars” and asserts that his children played a role in this alleged deception.
Furthermore, Engoron ordered the revocation of some of Trump’s business licenses as a punitive measure; this action could potentially render it extremely challenging or even impossible for Trump’s businesses to operate in New York. Additionally, the judge has confirmed his intention to maintain an independent monitor overseeing the operations of the Trump Organization.
In response to these legal actions, Trump has consistently denied any wrongdoing, characterizing the investigation as politically motivated and akin to a “witch hunt.” He has maintained that his assets hold significantly higher value than what is indicated on his annual financial statements and has underlined the presence of disclaimers on these statements to support his position.
In response to Judge Arthur Engoron’s ruling regarding the civil trial stemming from New York Attorney General Letitia James’ lawsuit against him and the Trump Organization, former President Trump posted on his Truth Social platform.
Trump expressed his belief that he has been unfairly sued by Letitia James, a Democrat who strongly opposes him. He contended that the lawsuit revolves around the false accusation that he inflated his financial statements to secure loans from banks and other entities.
Trump criticized Judge Engoron for not allowing the case to be transferred to the ‘Commercial Division,’ which he believes is the appropriate jurisdiction. He accused the judge of being biased against him, going as far as to say that Engoron is a “Trump Hater” even more fervent than Attorney General James, who campaigned against him using what he described as “horrible inflammatory statements” that he deems false. and defamatory. Trump also lamented that he is not entitled to a jury trial.
The former president insisted that the case’s facts are straightforward and asserted that his actual net worth exceeds the figures presented on his financial statements. He specifically mentioned that the judge did not include the value of his brand, which he considers to be his most valuable asset.
As mentioned earlier, the civil trial is scheduled to begin in New York City as planned.
Trump also stated that the banks received full repayment, often ahead of schedule, and there were no instances of defaults. He noted that these banks were not only profitable in their dealings but also had top-tier law firms representing their interests, resulting in their overall satisfaction.
In addition, Trump highlighted that there were no victims in these transactions. He pointed out the existence of a robust “disclaimer clause” prominently featured on the front page of the financial statements. This clause explicitly advises all parties, including financial institutions, not to solely rely on these financial statements.
Trump underlined that this disclaimer clause clearly instructs anyone reviewing the data, including financial institutions, to conduct their own research and analysis. It essentially functions as a non-reliance clause and could not be more explicit in its guidance.
“Additionally, my value is much higher than what is shown in the ‘completely negative’ financial statements. Again, my biggest asset, the brand, is not devalued. The company has hundreds of millions of dollars in cash and very little debt,” Trump said. “It is a great organization that has been defamed and discredited by this politically motivated witch hunt.”
Trump was impeached as part of a second impeachment in April. On this occasion, he answered the questions asked by the former President. The first deposition took place in August 2022, but Trump exercised his Fifth Amendment rights.