A judge ruled Tuesday on New York state’s case against Donald Trump… and Trump didn’t bite his tongue in response.
Judge Arthur Engoron, an elected Democrat, ruled that Trump committed fraud for years while building his real estate empire. Furthermore, the judge ordered some of the former president’s companies removed from his control and dissolved.
Trump publicly railed against the decision.
Engoron, ruling in a civil lawsuit brought by New York Attorney General Letitia James, ruled that Trump and his company deceived banks, insurers, and others by overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing loans.
The judge ordered that some of Trump’s business licenses be rescinded as punishment, making it difficult or impossible for them to do business in New York, and said he would continue to have an independent monitor oversee Trump Organization operations.
If not successfully appealed, the order would strip Trump of his authority to make strategic and financial decisions over some of his key properties in the state.
Trump’s defenders have pointed out that, even after allegedly overvaluing his assets, Trump would likely pay more in taxes, not less.
The former president, in a series of statements, railed against the decision, calling it “un-American” and part of an ongoing plot to damage his campaign to return to the White House.
“My Civil rights have been violated, and some Appellate Court, whether federal or state, must reverse this horrible, un-American decision,” Trump wrote on Truth Social. “I have a Deranged, Trump Hating Judge, who RAILROADED this FAKE CASE through a NYS Court.”
Trump insisted his company had “done a magnificent job for New York State” and “done business perfectly,” calling it “A very sad Day for the New York State System of Justice!”
Trump’s lawyer, Christopher Kise, said they would appeal, calling the decision “completely disconnected from the facts and governing law.”
Take a look —
Engoron said that Trump reaped undue rewards by exaggerating his wealth. The judge found that Trump, his company, and his key executives lowered their insurance costs and gained more favorable loan terms.
Those tactics crossed a line and violated the law, the judge said, rejecting Trump’s contention that a disclaimer on the financial statements absolved him of any wrongdoing.
Engoron wrote in the 35-page ruling —
In defendants’ world: rent regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air; a disclaimer by one party casting responsibility on another party exonerates the other party’s lies; the Attorney General of New York does not have capacity to sue or standing to sue (never mind all those cases where the Attorney General has sued successfully) under a statute expressly designed to provide that right; all illegal acts are untimely if they stem from one untimely act; and square footage is subjective.
That is a fantasy world, not the real world.
Manhattan prosecutors had looked into bringing criminal charges over the same conduct but declined to do so, leaving James to sue Trump and seek penalties that aim to disrupt his and his family’s ability to do business.
The media have run headlines like, “Trump Basically Just Lost the New York Bank Fraud Case Before It Even Started.” However, the truth looks more complicated.
The judge will decide on the other claims and James’ request for $250 million in penalties at a trial starting Oct. 2.
Trump’s lawyers have asked an appeals court for a delay.
“Today, a judge ruled in our favor and found that Donald Trump and the Trump Organization engaged in years of financial fraud,” James said in a statement. “We look forward to presenting the rest of our case at trial.”
Trump’s lawyers, in their own summary judgment bid, had asked the judge to throw out the case, arguing that there wasn’t any evidence the public was harmed by Trump’s actions. They also argued that many of the allegations in the lawsuit were barred by the statute of limitations.
James, also a Democrat, sued Trump and the Trump Organization a year ago, accusing them of routinely inflating the value of assets like skyscrapers, golf courses and his Mar-a-Lago estate in Florida.
Engoron ruled that Trump consistently overvalued Mar-a-Lago. The judge also claimed Trump lied about the size of his Manhattan apartment.
“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,” Engoron wrote.
Under the ruling, limited liability companies that control some of Trump’s key properties, such as 40 Wall Street, will be dissolved and authority over how to run them handed over to a receiver. Trump would lose his authority over whom to hire or fire, whom to rent office space to, and other key decisions.
“The decision seeks to nationalize one of the most successful corporate empires in the United States and seize control of private property all while acknowledging there is zero evidence of any default, breach, late payment or any complaint of harm,” Kise said after the decision. Trump has repeatedly insisted he did nothing wrong.
The Horn editorial team and the Associated Press contributed to this article.