A New York judge has ruled that former President Donald Trump engaged in fraud by consistently overstating his wealth by hundreds of millions of dollars. This decision is part of a civil lawsuit against both Mr. Trump and his family business, accusing them of deceiving banks and insurance companies over several years. This significant setback for Mr. Trump could potentially hinder his future business endeavors in the state.
Despite the defendants’ arguments against allegations of fraud, New York Attorney General Letitia James accused Trump, his two adult sons, and the Trump Organization of inflating the value of their properties by more than $2bn to suit their business needs. She alleged that they issued false records and financial statements to secure better terms on loans and insurance deals and to reduce tax liabilities.
Judge Arthur Engoron issued the scathing decision in the New York state court, determining that Mr. Trump overvalued several of his properties and used fraudulent valuations in business. The judge also ordered the cancellation of business certificates for some of Trump’s businesses in New York, which could impact his control over signature properties like the Trump Tower.
The trial, focusing on a narrower set of six remaining claims, is scheduled to begin on October 2 and could last until at least December. Ms. James is seeking $250m in penalties and a ban on Mr. Trump doing business in his home state.
Lawyers for Mr. Trump have called the ruling “a miscarriage of justice” and plan to appeal. Mr. Trump has denied any wrongdoing, labeling the case a political “witch hunt” and accusing the judge of being “highly politicized.” He is also seeking to delay the trial and has sued the judge.
This case is one of several legal challenges Mr. Trump is facing, including 91 felony charges across four criminal cases, as he campaigns for a potential election rematch with President Joe Biden next year.