A New York judge has ruled that Donald Trump and his adult sons are liable for fraud and has canceled the business certification of the Trump Organization. The judge found that the Trumps had provided false financial statements for approximately ten years, violating New York state law and engaging in repeated fraud. Attorney General Letitia James, who had sought $250 million in damages, hailed the ruling as a victory and said her office looked forward to presenting the rest of its case at trial. The judge also appointed a receiver to manage the dissolution of the Trump entities involved in the case. The full impact of the ruling, including its effect on properties located outside of New York state and whether the Trumps can transfer assets to a new out-of-state company, remains unclear.
The judge found that the Trumps inflated the values of their properties, including Trump Tower, resulting in overvaluations of between $114 million and $207 million. He deemed such discrepancies to be fraudulent and criticized the Trumps for their continued reliance on misleading arguments. Trump condemned the ruling as politically motivated, called for intervention from higher courts, and accused the judge of doing the bidding of James. The Trump family and their attorney have promised to seek all available appellate remedies to rectify what they perceive as a miscarriage of justice.
The ruling represents a significant blow to Trump and his defense against the charges of fraud. It also sets a precedent for holding the Trump Organization accountable for false financial statements. The cancellation of the business certification and appointment of a receiver to dissolve the Trump entities involved in the case could have far-reaching consequences for the Trumps’ business operations. The decision highlights the importance of financial transparency and honesty in business transactions and underscores the potential legal ramifications for those who engage in fraudulent practices.