The photo captures two contrasting images. On the left, we see New York Attorney General Letitia James delivering a press conference on the financial fraud case of former US President Donald Trump and his family. On the right, we see Trump himself, speaking at a ‘Save America’ rally in Robstown, Texas. The stark contrast between the two images is a reminder of the political and legal battles that have continued to follow Trump since he left office. The photo captures the ongoing tension between Trump and his opponents, as well as the continued interest in his actions and dealings.
In a ruling made on Tuesday afternoon, it was determined that former President Donald Trump, along with his sons Donald Trump Jr. and Eric Trump, as well as some of their top associates, and multiple corporate entities that make up the Trump family business, were involved in fraudulent activities.
In a recent development, Manhattan Supreme Court Justice Arthur Engoron has issued three 35-page orders that reveal former President Donald Trump and his company, Trump Organization, allegedly inflated their net worth and overvalued their assets on financial documentation over the years. The motive behind this, as stated by the Justice, was to deceive banks and insurance companies to conduct business. These orders shed light on the ongoing investigation into the Trump Organization’s financial activities.
In September 2022, a $250 million civil fraud lawsuit was filed against Donald Trump, his children, and the Trump Organization. The lawsuit was brought by the Attorney General of New York, Letitia James. Recently, a ruling was made in this case. The ruling is related to the lawsuit and does not provide any new information about the case.
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According to Engoron, with every order, it was made clear that Trump and other individuals had breached New York Executive Law § 63(12), a regulation that endows the state’s attorney general with extensive powers to investigate and prosecute cases of civil fraud through the filing of civil lawsuits.
Last August, the New York Attorney General, Letitia James, filed a motion for summary judgment on certain claims in the lawsuit. This move was made in response to allegations of repeated and persistent fraud by Donald Trump, who is said to have inflated his net worth by billions of dollars over a period of 10 years. The aim of this fraudulent activity was to deceive banks and insurance companies into granting him loans and better terms.
According to the AG’s office, the fraudulent schemes can be traced back to 2011. During that year, Donald Trump and his team allegedly increased the value of several assets listed on his annual statement of financial condition by billions of dollars and also misrepresented his overall net worth for each of those years. This filing reveals the extent to which they artificially inflated Trump’s financial standing.
The filings made by James’ office in August were extensive and contained thousands of pages of exhibits. They revealed how Trump had overstated the square footage of his triplex apartment in Trump Tower by almost three times the actual amount of space, leading to an inflated value. Additionally, it was found that Trump had valued several of his properties at dollar amounts much higher than what professional appraisers had estimated.
According to the order, the Court is not tasked with determining the most accurate appraisals or comparing one appraisal to another. Instead, the Court is comparing an independent professional appraisal to an unrealistic, concocted potential. The order emphasizes that the focus is not on which appraisal is most accurate, as that would present factual issues.
In his ruling, the judge specifically tackled the matter of square footage.
According to Engoron, measurements made in good faith may differ by around 10-20%, but definitely not by 200%. He strongly believes that a real estate developer cannot justify such a huge discrepancy in the size of their living space over several years and considers it to be fraudulent behavior.
Regarding Trump’s SFCs, Engoron made a specific reference.
According to one court order, the business documents in question are rife with fraudulent valuations that the defendants relied upon. However, the defendants have attempted to refute these claims by arguing that the documents are not as they seem and that the concept of an “objective” value is non-existent. Essentially, they are asking the court to disregard the evidence that is right in front of them.
In 2019, the New York Attorney General’s office initiated an investigation based on Michael Cohen’s sworn testimony before Congress. During questioning by Alexandria Ocasio-Cortez, Cohen alleged that the Trump Organization had overstated its assets to insurance companies and that similar financial irregularities were likely present in the company’s tax returns. This investigation has been ongoing since then.
After failing to respond appropriately to subpoenas in the case, Trump was held in contempt, which led to a financial penalty. However, the penalty was later removed once the subpoena responses were corrected. Trump and two of his children attempted to have the lawsuit transferred to a different judge, but their efforts were unsuccessful. Recently, Trump filed a lawsuit against Engoron, the judge presiding over the case.
In past judgments, Engoron has strongly condemned the arguments and conduct of the defendants, which led to penalties.
The latest orders that came in on Tuesday were no different from the usual.
One can find a limited assortment of texts, including:
Defendants are aggravating matters by persistently relying on fallacious arguments in both written and oral presentations. In their world, rent-regulated apartments hold the same value as unregulated ones, and restricted land is no different from unrestricted land. They believe that restrictions can simply vanish into thin air and that a disclaimer from one party absolves the other party of any lies. Astonishingly, they also assert that the Attorney General of the State of New York lacks the capacity or standing to sue, despite numerous successful cases where the Attorney General has sued under a statute that specifically grants this right. They further argue that any illegal acts become untimely if they stem from one single untimely act and that square footage is subjective.
“The court emphasized that the scenario presented was a fictional world and not reflective of reality,” the statement read.
Engoron revoked several licenses that permitted the Trumps to carry out business activities in New York State as a penalty.
A number of lawyers representing Trump were also hit with sanctions of $7,500 each for presenting baseless arguments during court hearings and in legal documents.
The Trump defendants are scheduled to face trial on the remaining counts in the AG’s fraud case starting from October 2.
When Law&Crime attempted to gather comments from representatives of both Trump and the Attorney General’s office, there was no response at the time of inquiry.
According to a report by The Associated Press, Trump’s lawyer Christopher Kise, who faced sanctions by the court, has stated that their clients plan to contest the decision. Kise has called the ruling a “miscarriage of justice” and has claimed that it is “completely disconnected from the facts and governing law.”
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The news article titled “‘Can only be considered fraud’: Judge finds Donald Trump, his older sons, and their family business empire liable for fraud – cancels numerous businesses and licenses in New York” was originally published on Law & Crime. The article discusses the ruling that found Donald Trump, his older sons, and their family business empire guilty of fraud, leading to the cancellation of several businesses and licenses in New York.
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