For almost a decade, Donald Trump has provided fake financial statements for his enterprises, rules NY Judge
A New York judge – Arthur Engoron has found the former President of the United States (U.S.) – Donald Trump and his adult sons liable for fraud and cancelled the Trump Organization’s business certification, saying the Trumps provided false financial statements for roughly a decade.
The judge ruled that Trump inflated the values of his golf courses, hotels, and homes at Mar-a-Lago and Seven Springs on financial statements that were repeatedly used in business. The judge cancelled the business certifications of the Trump entities that are defendants in the case, including the Trump Organization, and said a receiver would be put in place to “manage the dissolution” of the corporate entities. There are 2 New York properties, a commercial tower at 40 Wall Street and the Trump family compound at Seven Springs, that are part of the lawsuit.
It is a major blow to Trump as it will hamper his ability to do business in the State. It will also make it easier for prosecutors to establish damages.
Engoron granted Attorney General – Letitia James’ motion for summary judgment. The Attorney General has sought U.S. $250 million in damages, a ban on the Trumps from serving as officers of a business in New York and to stop the company from engaging in business transactions for 5 years.
A Statement from James read, “Today, a judge ruled in our favour and found that Donald Trump and the Trump Organization engaged in years of financial fraud. We look forward to presenting the rest of our case at trial.”
Among other things, Trump is accused of inflating the value of his triplex apartment at Trump Tower by 3 times its size, resulting in an overvaluation of between U.S. $ 114 million to U.S. $ 207 million.
He further said, “A discrepancy of this order of magnitude, by a real estate developer sizing up his own living space of decades, can only be considered fraud.”
Trump condemned the ruling in a statement, accusing Engoron of “doing the bidding” of James, as he looks to return to the White House.
Speaking on the occasion, Trump said, “It is a great company that has been slandered and maligned by this politically motivated Witch Hunt. It is very unfair, and I call for help from the highest Courts in New York State or the Federal System to intercede. THIS IS NOT AMERICA!”
Trump’s Attorney – Christopher Kise called the ruling completely disconnected from the facts and governing law. Kise said that while the full impact of the decision remains unclear, what is clear is that Trump and his family will seek all available appellate remedies to rectify this miscarriage of justice.
James has alleged that Trump, three of his children, his companies and his business executives defrauded lenders, insurers and other entities. In the lawsuit, James claims that Trump reaped a substantial financial benefit by putting forward faulty information in his financial statements, including U.S. $ 150 million in the form of favourable interest rates he obtained from the banks.
In the order, the judge rejected Trump’s deposition testimony in which the Trump said that the financial statements were not fraudulent because they contained disclaimers. Trump said the statements contained a “Worthless Clause” in them, warning lenders and others that they shouldn’t be relied on.
The ruling means the attorney general’s office won on its first claim and will receive some amount of disgorgement to be determined at trial. The case will still proceed to trial but the attorney general’s office won’t need to prove the financial statements are false as they seek to hold him and his sons liable for insurance fraud and false business records.
