Former President Donald Trump has been given a seven-day ultimatum by New York Judge Arthur Engoron to submit a list of companies that will face the revocation of their New York business licenses. This action stems from a pre-trial ruling in which the judge found that Trump and others within the Trump Organization had engaged in financial fraud by creating false and misleading financial statements that inflated Trump’s net worth.
The consequence of this ruling will significantly limit Trump’s ability to manage his real estate company, as the list of affected companies will be provided to retired federal judge Barbara Jones, currently overseeing the Trump Organization as a court-appointed monitor.
In a surprising development, Judge Engoron has also granted Trump’s legal team until October 26 to furnish a list of potential receivers. These receivers will be responsible for overseeing the dissolution of the business licenses of the affected companies. To prevent any attempts to circumvent the ruling, Engoron has ordered that advance notice be given to Judge Jones of any applications for new business licenses in any jurisdiction. Furthermore, any efforts to create new entities for the purpose of holding or acquiring the assets of a dissolving company must also be reported to her.
Despite his absence on Thursday, the civil fraud trial continued with a focus on an accountant who prepared Donald Trump’s financial statements. The trial examines allegations that Trump inflated the value of properties such as Trump Tower and Mar-a-Lago in financial statements, with New York Attorney General Letitia James leading the lawsuit. The defense contends that any issues with the financial statements were the result of errors by Donald Bender, Trump’s long-serving personal accountant.
Bender testified that he had requested all necessary documents from Trump Organization executives but did not always receive them promptly. Notably, he mentioned learning about missing appraisals only when questioned by Manhattan prosecutors during their investigation into Trump’s business practices.
The trial seeks to establish that Trump and his company had complete control over the preparation of these financial statements, with accountants relying on information provided by the Trump Organization. New York Attorney General James is pursuing $250 million in penalties and a ban on Trump conducting business in New York.
