Former US President Trump Appears at New York Court for Fraud Trial
Former US President Trump Appears at New York Court for Fraud Trial
A judge’s ruling on Tuesday found that former President Donald Trump committed fraud over several years while building his real estate empire, which led to the removal of some of his former companies from his control and their dissolution.
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Judge Arthur Engoron, presiding over a civil lawsuit brought by New York Attorney General Letitia James, determined that Trump and his company engaged in deception by inflating the value of his assets and exaggerating his net worth on documents used in business deals and loan applications.
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As part of the judgment, Engoron ordered the revocation of certain business licenses associated with Trump’s companies as a form of punishment, making it challenging or impossible for them to operate in New York. Additionally, an independent monitor will continue to oversee Trump Organization operations.
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Unless successfully appealed, the ruling would result in Trump losing the authority to make strategic and financial decisions regarding some of his key properties in the state.
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In response to the ruling, Trump criticized it, calling it “un-American” and part of an ongoing plot to undermine his campaign to return to the White House. He asserted that his civil rights had been violated and called for an appeal to reverse the decision.
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Trump’s attorney, Christopher Kise, also announced their intention to appeal, characterizing the ruling as disconnected from the facts and legal principles.
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Engoron’s decision, delivered just before the start of a non-jury trial in James’ lawsuit, represents a significant rebuke to Trump’s public image as a wealthy and astute real estate magnate who transitioned into a political figure.
The ruling concluded that Trump, his company, and key executives repeatedly provided false information about his financial status on his annual financial statements. These false claims led to advantages such as favorable loan terms and reduced insurance costs. Engoron dismissed Trump’s argument that a disclaimer on the financial statements absolved him of wrongdoing.
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Engoron emphasized that in the world of Trump and his associates, there was a disconnect from reality, where, for instance, rent-regulated apartments were equated with unregulated ones, and restrictions were viewed as having no impact. The judge labeled this perspective as a “fantasy world.”
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While Manhattan prosecutors had considered pursuing criminal charges over the same conduct, they ultimately decided not to, leaving Attorney General James to file the civil lawsuit seeking penalties that would disrupt Trump and his family’s business activities.
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Engoron’s ruling addressed the central claim in James’ lawsuit, with other claims and the request for $250 million in penalties still pending. A trial is scheduled to commence on October 2, although Trump’s legal team has requested a delay from an appeals court.
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In her statement, Attorney General James celebrated the ruling, stating that it confirmed that Trump and the Trump Organization had engaged in financial fraud over several years.
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This lawsuit adds to a series of legal challenges facing Trump, who is the leading candidate for the Republican nomination in the next presidential election. He has faced multiple indictments in recent months, including charges related to attempting to overturn the 2020 election results, hoarding classified documents, and falsifying business records.
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Additionally, the Trump Organization was convicted of tax fraud in an unrelated criminal case last year, leading to a fine of $1.6 million, and Trump’s longtime finance chief, Allen Weisselberg, pleaded guilty and served time in jail.
