A New York judge has ordered the cancellation of business certificates for firms owned by former President Donald Trump and others associated with the Trump Organization. The ruling came as part of a pretrial decision in a civil fraud trial, which found that Trump had submitted “fraudulent valuations” for his assets to secure better loan and insurance terms. The judge cited false and misleading information about the square footage of Trump’s Fifth Avenue apartment and other faulty valuations. Eric Trump, who oversees the Trump Organization’s operations, expressed his discontent with the ruling on Twitter. Trump plans to appeal the decision, and the trial is set to proceed next week.
The cancellation of business certificates affects New York-based companies controlled or owned by Trump, his sons, former Trump Organization officials, Allen Weisselberg and Jeffrey McConney. This could potentially lead to the closure of iconic Trump properties such as Trump Tower, Trump National Golf Club, and The Trump Building. These businesses employ hundreds of people and make up a significant portion of the Trump Organization’s holdings. However, the order does not apply to the Trump Organization as a whole, allowing its entities outside of New York to continue operating.
Within 10 days of the ruling, the parties involved in the lawsuit must recommend potential receivers to manage the dissolution of the affected businesses. This process could result in the closure of these entities and the sale of their assets. However, there are still significant unanswered questions regarding the scope of the ruling and which specific business entities it covers. The ultimate outcome of these deliberations will determine the consequences for the Trump Organization, which has a global portfolio of businesses. Additionally, the trial will determine the potential financial penalty for Trump, which could amount to hundreds of millions of dollars, and may prohibit him from acquiring real estate and applying for loans in New York.
