A New York judge has ruled that Donald Trump and the Trump Organization fraudulently inflated the value of their assets by billions of dollars, a major victory for the state’s attorney general.
The ruling is the culmination of a two-year investigation by New York Attorney General Letitia James, who filed a civil lawsuit against Trump in September 2022. In the lawsuit, James alleged that Trump had engaged in a “scheme to deceive” lenders, insurers, and tax authorities by using “grossly inflated” asset valuations in financial statements and other documents.
In his 35-page ruling, Judge Arthur Engoron found that Trump and the Trump Organization had committed fraud on “at least 22 occasions” between 2011 and 2021. He cited a number of specific examples, including:
- Trump claimed that his Mar-a-Lago club in Florida was worth $739 million, when it was actually worth closer to $28 million.
- Trump claimed that his golf course in Bedminster, New Jersey, was worth $291 million, when it was actually worth closer to $53 million.
- Trump claimed that his Trump Tower penthouse in New York City was worth $327 million, when it was actually worth closer to $163 million.
Judge Engoron also found that Trump had personally directed the fraud scheme and had made false statements to lenders and insurers about the value of his assets. For example, he found that Trump had lied to Deutsche Bank about the value of his Trump Tower penthouse in order to obtain a loan.
The ruling is a major setback for Trump and his business empire. It could make it more difficult for Trump to obtain loans and insurance in the future, and it could also expose him to civil and criminal penalties.
“This is a major victory for the rule of law,” James said in a statement. “No one is above the law, not even Donald Trump. Trump and the Trump Organization engaged in a scheme to deceive lenders, insurers, and tax authorities for years. This ruling holds them accountable for their actions.”
Trump has denied the allegations of fraud, calling them a “witch hunt” by Democrats. He has also vowed to appeal the ruling.
“This is a continuation of the greatest witch hunt in history,” Trump said in a statement. “I will never give up. I will never stop fighting for the American people.”
It remains to be seen what the long-term implications of the ruling will be. However, it is clear that the ruling is a major blow to Trump and his business empire.
Update
On September 27, 2023, James announced that she is seeking a $250 million penalty against Trump and the Trump Organization. She is also seeking to permanently bar Trump and his three eldest children from holding any leadership positions in any New York-registered company.
A trial in the civil lawsuit is scheduled to begin on October 2, 2023.
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Significance of the Ruling
The ruling against Trump is significant for a number of reasons. First, it is a major victory for James and her team. James is the first attorney general to hold Trump accountable for his alleged financial wrongdoing.
Second, the ruling could have serious consequences for Trump and his business empire. It could make it more difficult for Trump to obtain loans and insurance in the future, and it could also lead to a loss of customers.
Third, the ruling sends a message that no one is above the law, not even former presidents. The ruling is a reminder that everyone is accountable for their actions, regardless of their wealth or power.
Conclusion
The ruling against Trump is a major development. It is a victory for James and her team, and it could have serious consequences for Trump and his business empire. The ruling also sends a message that no one is above the law.