In a significant blow to former US President Donald Trump, a New York judge, Arthur Engoron, has ruled that Trump and his sons, Eric and Don Jr, engaged in fraudulent activities by artificially inflating the values of assets within the Trump Organization over several years.
The ruling comes as New York State Attorney General Letitia James accuses the Trumps and other Trump Organization executives of systematic deception. Their alleged misconduct involves providing false information to tax authorities, lenders, and insurers, consistently exaggerating the worth of their real estate holdings and financial assets.
Notably, Trump’s legal team had sought a summary judgment to dismiss the case before trial, while Attorney General James sought Trump’s liability. The judge’s decision not only advances the case to trial but also revokes business licenses that permitted the Trump Organization to operate specific properties in New York.
Letitia James seeks substantial penalties amounting to $250 million, as well as the removal of Trump and his sons from managing the Trump Organization. She asserts that the Trump team repeatedly presented grossly inflated figures to secure loans and insurance under more favorable terms between 2011 and 2021, resulting in illicit savings and profits in the hundreds of millions.
The attorney general’s claim suggests an overvaluation of Trump’s assets ranging from $1.9 billion to $3.6 billion annually. One of the most striking examples of overestimation was the square footage of Trump’s Manhattan apartment, misstated as 30,000 square feet when it is, in fact, only 10,996 square feet. Judge Engoron aptly characterized such a colossal disparity as fraudulent.
Trump, a leading contender for the 2024 Republican presidential nomination, has consistently labeled these legal actions as a “witch hunt,” while also characterizing Letitia James, a Democrat of Black heritage, as “racist.”
This recent ruling adds to Trump’s legal woes, as he has previously been fined $1.6 million in a New York criminal case related to tax and financial fraud. Additionally, he faces federal criminal charges for mishandling classified documents and conspiracy charges in connection with attempts to overturn the 2020 election results.
The outcome of this trial will undoubtedly be watched closely, given its potential impact on Trump’s political future and the continued legal challenges he faces.
By AFP
