Donald Trump liable for fraud and Trump Organization’s business certification canceled, New York judge rules

A New York judge has ruled that former President Donald Trump and his adult sons are liable for fraud and has canceled the business certification of the Trump Organization, posing a significant threat to Trump’s financial empire. The ruling came in response to a lawsuit by New York Attorney General Letitia James, who is seeking $250 million in damages and a ban on the Trumps from serving as officers of any business in New York. Judge Arthur Engoron rejected Trump’s arguments that he didn’t inflate the values of his properties on financial statements. The judge criticized Trump’s defense arguments, stating that they were “bogus” and “exacerbating.” The ruling cancels the business certifications of the Trump entities that are defendants in the case, including the Trump Organization. It remains unclear how this will affect properties located outside of New York state, such as Mar-a-Lago. A receiver will be put in place to manage the dissolution of the corporate entities. A trial is expected to begin next week on the amount of damages owed. Trump condemned the ruling and accused the judge of doing the bidding of the attorney general. Trump’s attorney called the ruling “completely disconnected from the facts and governing law” and stated that Trump and his family will seek all available appellate remedies. In the lawsuit, James alleges that Trump and his family defrauded lenders, insurers, and other entities. The judge rejected Trump’s deposition testimony in which he claimed that the financial statements were not fraudulent because they contained disclaimers. The judge stated that the defendants’ reliance on these disclaimers was worthless. The attorney general’s office won on its first claim, and the case will proceed to trial. The start date of the trial is currently in limbo pending a decision by the state appeals court.