Wednesday, September 27, 2023

Judge Rules Trump Committed Fraud, Stripping Control of Key Properties. (NY Times)

The latest on Trumpery, flummery, dupery and nincompoopery.  From The New York Times:


Judge Rules Trump Committed Fraud, Stripping Control of Key Properties

The decision in a lawsuit that could go to trial next week is a major win for Attorney General Letitia James, who says former President Donald J. Trump overvalued his holdings by as much as $2.2 billion.

Donald J. Trump stands on a stage at a campaign rally as the crowd holds up signs that read “Trump 2024.”
The judge’s decision represents a major blow to Donald J. Trump, whose lawyers had sought to persuade the judge to throw out many of the claims against the former president.Credit...Rachel Mummey for The New York Times
Donald J. Trump stands on a stage at a campaign rally as the crowd holds up signs that read “Trump 2024.”

A New York judge ruled on Tuesday that Donald J. Trump persistently committed fraud by inflating the value of his assets, and stripped the former president of control over some of his signature New York properties.

The surprising decision by Justice Arthur F. Engoron is a major victory for Attorney General Letitia James in her lawsuit against Mr. Trump, effectively deciding that no trial was needed to determine that he had fraudulently secured favorable terms on loans and insurance deals.

Ms. James has argued that Mr. Trump inflated the value of his properties by as much as $2.2 billion and is seeking a penalty of about $250 million in a trial scheduled to begin as early as Monday.

Justice Engoron wrote that the annual financial statements that Mr. Trump submitted to banks and insurance companies “clearly contain fraudulent valuations that defendants used in business.”


Ms. James, in a brief statement, said, “We look forward to presenting the rest of our case at trial.”

A lawyer for Mr. Trump, Christopher M. Kise, indicated that he would likely appeal the decision, which he called “outrageous” and “completely disconnected from the facts and governing law.” He said that the judge ignored an earlier appeals court ruling and “basic legal, accounting and business principles.”

Mr. Trump, for his part, noted that Justice Engoron was a Democrat and called him “deranged.”

While the trial will determine the size of the penalty, Justice Engoron’s ruling granted one of the biggest punishments Ms. James sought: the cancellation of business certificates that allow some of Mr. Trump’s New York properties to operate, a move that could have major repercussions for the Trump family business.


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