A New York judge ruled Tuesday that Donald Trump and his company deceived banks, insurers, and others by massively 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The judge ordered that some of Trump’s business licenses be rescinded as punishment, making it difficult or impossible for them to do business in New York, and said he would continue to have an independent monitor oversee Trump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 lawyers have said they will appeal the decision, calling it “completely disconnected from the facts and governing law.”
The ruling is the strongest repudiation yet of Trump’s carefully coiffed image as a wealthy and shrewd real estate mogul turned political powerhouse.
Manhattan prosecutors had looked into bringing criminal charges over the same conduct but declined to do so, leaving New York Attorney General Letitia James to sue Trump and seek penalties that aim to disrupt his and his family’s ability to do business.
The judge’s ruling, in a phase of the case known as summary judgment, resolves the key claim in James’ lawsuit, but several others remain. He’ll decide on those 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.
James, 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, padding his bottom line by billions.
The judge found that Trump consistently overvalued Mar-a-Lago, inflating its value on one financial statement by as much as 2,300%. The judge also rebuked Trump for lying about the size of his Manhattan apartment. Trump claimed his three-story Trump Tower penthouse was nearly three times its actual size, valuing it at $327 million.
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 ruling is a major blow to Trump, who is considering running for president again in 2024. It is also a significant victory for James, who has been investigating Trump’s business practices for several years.
The ruling is a reminder that no one is above the law, not even a former president. It is also a warning to other businesses that they cannot engage in fraudulent practices without consequences.
The press has written extensively about Trump’s financial fraud for many years. Here are a few examples:
- New York Times, March 1, 2017: “Trump’s Taxes Show Chronic Losses and Years of Doubtful Business Practices
- Washington Post, October 2, 2018: “Trump’s Financial Statements Inflated His Net Worth by Billions of Dollars, New York Times Finds”
- Wall Street Journal, February 27, 2019: “Trump Organization Gave Allen Weisselberg Millions of Dollars in Undisclosed Perks
- The New Yorker, March 11, 2019: “Trump’s Tax Schemes: How He Get Away With It”
- ProPublica, September 23, 2020: “A ProPublica Investigation: Inside Trump’s Tax Records
These articles and many others have documented Trump’s long history of fraudulent business practices, including inflating the value of his assets, lying to banks and insurers, and dodging taxes.
The press coverage of Trump’s financial fraud has been critical and has helped to raise awareness of his crimes. The press has also played a role in holding Trump accountable for his actions.
In addition to the articles listed above, the press has also written extensively about the recent civil lawsuit filed against Trump by New York Attorney General Letitia James. This lawsuit alleges that Trump and the Trump Organization engaged in years of financial fraud.
The press coverage of the lawsuit has been largely negative for Trump. The press has highlighted the evidence of fraud presented by James’ office and has criticized Trump’s attempts to discredit the lawsuit.
The press coverage of Trump’s financial fraud is important because it helps to inform the public about his crimes and to hold him accountable for his actions. The press also plays an important role in protecting democracy by ensuring that no one is above the law, not even a former president.