Donald Trump liable for business fraud, says judge in New York civil case

A New York judge has ruled that Donald Trump engaged in fraud by consistently misrepresenting his wealth, inflating property values by hundreds of millions of dollars. This ruling is part of a civil case against the former president and his family business, alleging fraudulent activities involving banks and insurers over an extended period.

New York Attorney General Letitia James accused Trump, his two adult sons, and the Trump Organization of artificially inflating property values by over $2 billion to benefit their business interests. The allegations include issuing false records and financial statements to secure better loan terms, insurance deals, and reduced tax payments.

Judge Arthur Engoron, presiding over the case, delivered a scathing decision, highlighting that Trump:

Overvalued Mar-a-Lago by an astonishing 2,300% in one financial statement.
Overstated the size of his penthouse at Trump Tower in New York, claiming it was three times larger than its actual size.
Dismissed the objective calculation of the penthouse’s area, with the judge describing such a discrepancy as “fraud” in a real estate context.

This ruling addresses the central fraud claim in the lawsuit, with the trial now focusing on six remaining claims and potential penalties. The trial is scheduled to commence on October 2 and could extend into December. The attorney general is seeking $250 million in penalties and a prohibition on Trump conducting business in New York.

Judge Engoron’s ruling also ordered the cancellation of business certificates for some of Trump’s enterprises, potentially impacting his control over key New York properties.

The judge rejected Trump’s request to dismiss the case and imposed fines on five of Trump’s attorneys for making baseless arguments. Trump’s legal team denounced the decision and indicated their intention to appeal.

Donald Trump has consistently denied wrongdoing, characterizing the case as a politically motivated “witch hunt.” He has also sued the judge and is awaiting an appeals court’s decision regarding the trial’s delay.

This lawsuit is one of several legal challenges the former president faces as he considers a potential campaign for a rematch with President Joe Biden in the next election and a return to the White House. Trump also faces 91 felony charges across four criminal cases, maintaining his not guilty plea in those instances.