Donald Trump defrauded banks and insurers by grossly inflating assets, judge rules

A new York The judge found that Donald Trump He committed fraud by falsely inflating his assets and assets by billions of dollars, a partial conclusion to a sweeping legal battle and a years-long investigation by the attorney general that targeted the former president’s business empire.

The Verdict Judge Arthur F. Engoron found on Sept. 26 that the former president, his two adult sons, his companies and executives defrauded banks and insurers by grossly overstating assets and exaggerating his net worth in documents securing deals and financing have.

Judge Engoron has ordered that several of the former president’s licenses be revoked, effectively impairing his ability to do business in the state. An independent monitor will also continue to monitor compliance with the order, as well as Mr. Trump’s operations and liabilities to lenders, insurers and others.

The decision follows a $250 million civil lawsuit filed by New York’s attorney general Letitia Jameswhose investigation focused on long-standing fraud allegations related to Mr. Trump’s business practices.

A decision came days before a non-jury trial began, but the partial verdict – a major victory for Ms. James and government investigators – clarifies key claims in their sweeping lawsuit that the former president’s legal team has repeatedly tried to dismiss. Mr Trump, meanwhile, has tried to sue the judge to prevent the trial from continuing. A state appeals court is expected to rule on his case this week.

Instead, the decision will narrow the issues to be heard in court and deal a major blow to Mr. Trump and his mountain of legal hurdles — including four criminal charges and another defamation lawsuit — as he seeks the Republican nomination for president in 2024.

Judge Engoron also ordered $7,500 in sanctions against Mr. Trump’s lawyers.

His ruling exposed the legal arguments of the “fantasy world” lawyers and accused them of wasting the court’s time with “repetitive, frivolous” filings aimed at delaying the proceedings, adding that the affidavits Mr. Trump’s statements “completely lack any legal basis.” Fact.”

The lawsuit by Ms. James’ office, which followed a three-year investigation and a review of millions of documents, seeks to recover $250 million in lost revenue and penalties, as well as a judge’s order permanently barring the Trumps from exercising any rights Offices would ban businesses in the state.

A recent filing by Ms. James argued that over a decade, Mr. Trump inflated his net worth by as much as $2.2 billion in one year and by hundreds of millions of dollars in other years.

Her Motion for Partial Summary Judgment It is estimated that Mr. Trump increased his net worth by $812 million each year from 2011 to 2021, to $2.2 billion – about 17 to 39 percent.

Mr. Trump has repeatedly branded Ms. James and other elected black Democratic prosecutors as “racists” and launched politically motivated investigations to stop him from running for office.

Their lawsuit alleges that the Trump Organization and its key players made more than 200 false and misleading valuations of its assets over a ten-year period from 2011 to 2021.

In a news conference announcing her sprawling civil case last year, she described the numerous “financial reporting statements” prepared at his direction by his former accounting firm as “exaggerated, grossly exaggerated, objectively false and therefore fraudulent and illegal.”

The lawsuit includes descriptions of 23 assets related to Mr. Trump and his empire that investigators believe were “grossly and fraudulently inflated.” Court documents show a pattern of questionable business practices, including fraudulent valuations of his New York golf course, the eponymous Manhattan Tower and other properties.

Last year, two Trump Organization affiliates were found guilty of criminal fraud charges stemming from what New York prosecutors called a “culture of fraud and deception” in a decades-long scheme to avoid paying payroll taxes through compensation of top executives with untaxed benefits such as living space and automobiles. The company was ultimately fined $1.6 million earlier this year.

The Trump Organization’s longtime chief financial officer, Allen Weisselberg, who is also involved in Ms. James’s civil lawsuit, also previously pleaded guilty to several related crimes.

This is a developing story