(New York) A US judge ruled Tuesday that Donald Trump committed years of fraud while building the real estate empire that catapulted him to fame and the White House.
Ruling in a civil lawsuit filed by New York Attorney General Letitia James, Judge Arthur Engoron ruled that the former president and his company misled banks, insurers and other financial institutions by massively overvaluing his assets and exaggerating one’s net worth on documents used to enter into transactions or obtain financing.
Judge Engoron ordered that some of Mr. Trump’s business licenses be revoked and said an independent monitor should continue to oversee the Trump Organization’s operations.
A spokesperson for Donald Trump did not immediately respond to a request for comment on the judge’s decision. The principal concerned has frequently maintained that he had done nothing wrong.
” An imaginary world ”
The move is the strongest rejection yet of Mr. Trump’s carefully-coiffed image as a wealthy, savvy real estate mogul turned political powerhouse.
Beyond simply boasting about his riches, Mr. Trump, his company and his top executives have repeatedly lied about them in his annual financial statements, reaping rewards such as favorable loan terms and job bonuses. insurance, Judge Engoron found.
PHOTO JANE ROSENBERG, REUTERS
Court drawing showing Judge Arthur Engoron listening to one of the defense attorneys, Christopher Kise, on Tuesday
Those tactics crossed the line and violated the law, the judge said, rejecting Mr. Trump’s claim that a disclaimer on the financial statements absolved him of any wrongdoing.
“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 warning from one party blaming another party exonerates the other party’s lies, the magistrate wrote in his 35-page decision. It’s a fantasy world, not the real world. »
Manhattan prosecutors had considered bringing a criminal case for the same behavior but declined to do so, leaving Mme James is suing Mr. Trump and seeking sanctions that could disrupt his and his family’s ability to do business in the state.
PHOTO CAITLIN OCHS, REUTERS ARCHIVES
New York State Attorney General Letitia James
Judge Engoron’s decision, in a phase of the case known as summary judgment, resolves the main claim of M’s suitme James, but there are six more left.
Judge Engoron is expected to hold a non-jury trial beginning Oct. 2 before ruling on the allegations and what sanctions he might impose. Mme James is seeking $250 million in penalties and a ban on Mr. Trump doing business in New York, his home state. The trial could last until December, warned Mr. Engoron.
Overestimated values
Among the allegations were that Mr. Trump claimed his Trump Tower apartment in Manhattan was nearly three times its actual size and valued the property at 327 million. No apartment in New York has ever sold for anywhere near that amount.
Mr. Trump valued his Mar-a-Lago, Florida, residence at $739 million, more than 10 times a more reasonable estimate of its value. Mr. Trump’s figure for the private club and residence was based on the idea that the property could be developed for residential purposes.
Mr. Trump has also denied wrongdoing, arguing in his sworn testimony that what he said in his financial statements didn’t matter because they contained a disclaimer saying he didn’t You shouldn’t trust them.
Judge Engoron rejected that argument when the defense previously moved to have the case dismissed.
The judge said the disclaimer on the financial statements “clearly shows that Mr. Trump was fully responsible for the information contained” in those financial statements and that “allowing broad disclaimers to protect liars from any liability would completely diminish” the “important function” that such statements should serve “in the real world.”
The Trump Organization was convicted of tax fraud last year in an unrelated criminal case for helping executives dodge taxes on extravagant perks such as Manhattan apartments and luxury cars.
The company was fined 1.6 million. One of the executives, Allen Weisselberg, Mr. Trump’s longtime financial director, pleaded guilty and served five months in prison.