Fraud Ruling Against Trump in New York

It was one year ago that New York Attorney General Letitia James filed a $250 million lawsuit against former president Donald Trump, accusing him of fraudulent business practices. Just this week, a New York judge has ruled that Trump is guilty of fraud in the building of his massive real estate empire. The judge claims that the he inflated the value of his assets and his own net worth as he negotiated real estate deals and asked for bank loans. The case will still be heard in court, but if this ruling sticks, it could have major implications for Trump’s financial world and a huge lesson for any investor who might consider adding a few zeros onto an asset valuation. Judge Arthur Engoron issued the ruling on Tuesday, September 26th. It comes in conjunction with a lawsuit against Trump by New York Attorney General Letitia James. The lawsuit claims that Trump and several of his family members committed “numerous acts of fraud and misrepresentation” and that Trump “inflated his net worth by billions of dollars.” $2.2 billion to be exact. The lawsuit also named Donald Jr., Ivanka, and Eric as defendants.   James said: “Mr. Trump and the Trump Organization repeatedly and persistently manipulated the value of assets to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to pay lower taxes, to satisfy continuing loan agreements, and to induce insurance companies to provide insurance coverage for higher limits and at lower premiums.” In one instance, they falsely inflated the total square footage of a commercial building by 300 percent, the ruling concluded...   ...Engoron has directed Trump to begin the process of dissolving the companies held in his name.   Meanwhile, an appeals court rejected Trump’s bid to delay the civil trial, allowing the case to proceed. This decision, by the state’s intermediate appellate court, clears the way for Engoron to preside over a non-jury trial starting Monday in Manhattan. James alleges Trump boosted his net worth by as much as $3.6 billion. Battling lawsuits is not new to the former president.  In 2017, Trump agreed to pay $25 million to settle fraud allegations linked to  "Trump University." In 2019, he agreed to pay $2 million to settle charges that he used charitable funds to pay for his political operations. and last December, Trump's company was found guilty of 17 counts of criminal fraud for falsifying business records.  This legal battle is not over. However, according to NPR, Trump could be forced to liquidate assets. Experts told NPR the legal threat to Trump now comes as follows: First, Trump's entire New York business operation, now deemed fraudulent, could be turned over to a receiver who would effectively take control of the firms and liquidate them at a public auction. Second, Trump and other defendants could be required to pay a $250 million fine which may require selling assets. Third, Trump and his associates including  Donald Trump Jr. and Eric Trump, could be permanently banned from doing business in New York state, where many of the family's most significant assets are located. That’s it for today. You can listen to past episodes and check for links to our sources for these stories at newsforinvestors.com. You can also sign up for a free RealWealth membership while you are there to learn more about how and where to invest in real estate, without making false claims! And please remember to subscribe to this podcast, and leave a review!   Links:   1 - https://www.foxnews.com/politics/new-york-judge-rules-trump-judge-rules-trump-committed-fraud-while-building-real-estate-empire   2 - https://www.foxnews.com/politics/new-york-ag-sues-trump-fraud-allegations   3 - https://www.theguardian.com/us-news/2023/sep/27/trump-new-york-real-estate-reaction-fraud   4 - https://www.theguardian.com/us-news/2023/sep/26/donald-trump-new-york-financial-fraud-key-takeaways