Judge rules Trump committed fraud, stripping control of key properties

By Jonah E. Bromwich and Ben Protess

NEW YORK — A New York judge ruled Tuesday (26) that Donald Trump persistently committed fraud by inflating the value of his assets, and stripped the former president of control over some of his signature New York properties.

The decision by Justice Arthur Engoron is a major victory for Attorney General Letitia James in her lawsuit against Trump, effectively deciding that no trial was needed to determine that he had fraudulently secured favourable terms on loans and insurance deals.

James has argued that Trump inflated the value of his properties by as much as $2.2 billion and is seeking a penalty of about $250 million in a trial scheduled to begin as early as Monday (Oct 2).

Engoron wrote that the annual financial statements that Trump submitted to banks and insurance companies “clearly contain fraudulent valuations that defendants used in business”.

James, in a brief statement, said, “We look forward to presenting the rest of our case at trial”.

A lawyer for Trump, Christopher Kise, indicated that he would likely appeal the decision, which he called “outrageous” and “completely disconnected from the facts and governing law”.  He said the judge ignored an earlier appeals court ruling and “basic legal, accounting and business principles”.

Trump, for his part, noted that Engoron was a Democrat and called him “deranged”.

While the trial will determine the size of the penalty, Engoron’s ruling granted one of the biggest punishments James sought: the cancellation of business certificates that allow some of Trump’s New York properties to operate, a move that could have major repercussions for the Trump family business.

The decision could terminate Trump’s control over a flagship commercial property at 40 Wall St. in lower Manhattan and a family estate in Westchester County. Trump might also lose control over his other New York properties, including Trump Tower in midtown Manhattan, and his golf club in Westchester.

The order will not dissolve Trump’s company, which is a collection of hundreds of entities, but the decision could nonetheless have a sweeping impact on the company’s New York operations. If Engoron’s decision is not reversed by an appeals court, it could shut down an entity that employs hundreds of people working for Trump in New York, effectively crushing the company.

“The decision seeks to nationalize one of the most successful corporate empires in the United States and seize control of private property,” Kise said.

The order would also unwind the Trump Organization LLC. That entity is relatively inconsequential, a vehicle for the sprawling company’s brand name. But it has been synonymous with Trump from his earliest days as a developer with a penchant for tabloid publicity, bringing his father’s outer-borough business to the heart of Manhattan.

While James’ civil case had been overshadowed by the four criminal indictments of the former president — which are unrelated to James’ accusations — the judge’s decision, if it stands, will represent the first punishment to emerge from a government investigation into Trump.

Engoron’s decision narrows the issues that will be heard at trial, deciding that the core of James’ case was valid. It represents a major blow to Trump, whose lawyers had sought to persuade the judge to throw out many claims against the former president.

In his order, Engoron wrote scathingly about Trump’s defences, saying that the former president and the other defendants, including his two adult sons and his company, ignored reality when it suited their business needs. “In defendants’ world,” he wrote, “rent-regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air.”

“That is a fantasy world, not the real world,” he added.

The judge also levied sanctions on Trump’s lawyers for making arguments that he previously rejected. He ordered each to pay $7,500, noting that he had previously warned them that the arguments in question bordered on being frivolous.

Repeating them was “indefensible”, Engoron wrote.

Even if Trump’s attempt to appeal the ruling is unsuccessful, he still has an opportunity to delay the trial, or even gut the case. Trump has sued Engoron himself, and an appeals court is expected to rule this week on his lawsuit. But if the appeals court rules against him, Trump will have to fight the remainder of the case at trial.

Trump is his own most dedicated promoter and for years has acted as a booster for the value of his buildings and his brand. The possibility that Trump’s exaggerations could be criminal has long intrigued prosecutors, and the Manhattan district attorney’s office at one point came close to indicting Trump on charges that he had misrepresented their value.

The current district attorney, Alvin Bragg, declined to pursue that case but later indicted the former president in connection with a hush money payment to a porn star.

James started investigating Trump in March 2019 and filed a lawsuit against him last September, accusing him of “staggering” fraud in representing the value of his apartment buildings, hotels and golf clubs, among other assets. Her filings have accused Trump of using simple, duplicitous tricks to multiply the represented value of his signature properties, from Trump Tower to Mar-a-Lago.

In one noteworthy example, she accused Trump of overestimating the size of the triplex apartment in Trump Tower in which he lived for decades, saying it was 30,000 feet, rather than about 11,000. Engoron seized on that, noting that Trump’s lawyers had “absurdly” suggested that the calculation of square footage was subjective and adding that good-faith measurements might vary by as much as 10%-20%, but not 200%.

“A discrepancy of this order of magnitude, by a real estate developer sizing up his own living space of decades, can only be considered fraud,” he wrote.

Trump’s lawyers had asked Engoron for a so-called summary judgment — a ruling that they were entitled to a victory before trial based on undisputed facts — seeking to toss out many claims against him. They relied heavily on an appeals court ruling from June that raised the notion that some claims against Trump might be too old to proceed to trial.

Engoron denied Trump’s request, interpreting the appeals court ruling as relatively inconsequential for the case, while granting James’ similar bid for partial summary judgment.

Trump, a Republican, has denied all wrongdoing and accused James, a Democrat, of political persecution. His lawyers have noted that the banks that lent Trump money were hardly victims: They turned profits. They also argued that valuing property can be subjective, more art than a strict science.

“The court disregarded the viewpoint of those actually involved in the loan transactions who testified there was nothing misleading, there was no fraud, and the transactions were all highly profitable,” Kise said in his statement. He added that there was “zero evidence of any default, breach, late payment or any complaint of harm.”

But those are some of the very arguments for which Engoron, with whom Trump’s lawyers have tangled at every turn, issued sanctions.

“The documents do not say what they say; that there is no such thing as ‘objective’ value,” the judge wrote, summarizing his take on their arguments, and adding, “Essentially, the court should not believe its own eyes.”

In a footnote, he added a line from the movie “Duck Soup” uttered by Chico Marx: “Well, who ya gonna believe, me or your own eyes?”

-New York Times

 

 

Comments are closed, but trackbacks and pingbacks are open.

otc high blood pressure treatment blood pressure guidelines medications blood pressure pills that is safe for the liver high blood pressure medication levothyroxine blood pressure medication that reduces blood pressure is there any difference in blood pressure pills high blood pressure child medication blood pressure medication recommendation nose blue blood pressure medication blood pressure is 150 68 should i take my medication blood pressure medication while nursing taking a bunch of high blood pressure pills aerobic exercise and blood pressure medication good blood pressure medication acupuncture treatment for low blood pressure best over the counter pills for high blood pressure blood pressure pill amlodipine besylate high blood pressure signs and treatment moderna vaccine blood pressure medication which blood pressure drugs do not cause tinnitus blood pressure medication fights cancer blood pressure medication skin rash side effects of high blood pressure medication impotence medication to avoid on blood pressure medications high blood pressure rx medication peripheral neuropathy caused by blood pressure medication high blood pressure in pregnancy treatment nice runny nose do to blood pressure medication how to get off of blood pressure pills hiv medication and high blood pressure niacin treatment for high blood pressure two drugs for blood pressure that caused cancer high blood pressure causing medications high blood pressure medication names canada blood pressure medication side effects alcohol i take 3 blood pressure medication blood pressure pills that help with anxiety what iv drug raises blood pressure list of doctors who formulated blood pressure medications how to remember blood pressure medications sleeping pills blood pressure how fast does blood pressure medication take effect sweet n low high blood pressure medication home treatment for blood pressure high blood pressure medication matrocet high blood pressure medication doses blood pressure drug bystolic iberstaron blood pressure medication blood pressure medications st alphabetical celexa and high blood pressure medication does blood pressure pills irritation skin can i take combivent with high blood pressure medication blood pressure medications beta blockers list what to do if blood pressure medication does not work drugs to lower your blood pressure red beet pills for blood pressure taurine and blood pressure medications how ling for garlic pills to lower blood pressure blood pressure medication list and side effects can i take aspirin with high blood pressure medication blood pressure medication teaching about hot tubs water pills high blood pressure over counter what is an arb medication for blood pressure resveratrol high blood pressure medication high blood pressure medication and weight loss gum disease and blood pressure medication benzenesulfonic acid in blood pressure medication taking two blood pressure pills by mistake allergy pills for high blood pressure blood pressure prescription drugs safety blood pressure medication in pregnancy trazodone and blood pressure medication which blood pressure medication is linked to skin cancer list of blood pressure medications with the least side effects could blood pressure medication make blood thicker disadvantages of high blood pressure medication blood pressure medications ludipril typical drugs for high blood pressure otc water pills for high blood pressure blood pressure medications that do not doncause bowel blockage high blood pressure after corrosion treatment how soon does high blood pressure medication work blood pressure medication teaching amertyrine high blood pressure medication increased blood pressure and heart rate after drug overdose over the counter drugs high blood pressure blood pressure medication 25 is blood pressure medication a nitrate most effective blood pressure pills blood pressure medical does red yeast rice interfere with high blood pressure medication can apple cider vinegar pills lower blood pressure does blood pressure medication give you headaches high blood pressure medication and driving should you take blood pressure pills with food inn blood pressure drugs can you eat bananas if taking blood pressure medication popular high blood pressure medication blood pressure medication los blood pressure medication second drug low blood pressure and hypertension medication do water pills lower blood pressure high blood pressure pill aqunadine high blood pressure cholesterol medication how does medication lower blood pressure acetaminophen blood pressure medication blood pressure medication 30 mg that works around the heart what does grapefruit do to blood pressure medication can red yeast rice be taken with blood pressure medication pharmaceutical treatment for high blood pressure are blood pressure pills statins blood pressure pills that start with r blood pressure medication and male impotence taking baby aspirin with other high blood pressure medications what is the medical name for a blood pressure cuff leg cramps and blood pressure medication blood pressure pill name starts with p natural high blood pressure treatments blood pressure medication names losartan higher blood pressure with radiation treatment medical marijauna high blood pressure how to avoid medication for high blood pressure what time is best to take blood pressure medication medication for palpitations and high blood pressure latest news on blood pressure treatment what if i take two blood pressure pills does xanax interfere with blood pressure medication amlipan blood pressure medication vitamin e and blood pressure medication tell me the side effects of high blood pressure medication herbs pills to lower blood pressure blood pressure medication urge to urinate what medication will safely replace lisop as blood pressure medicine active ingredient in high blood pressure medication blood pressure medications cause adrenal tumors is biktarvy ok to take with high blood pressure medication alembic blood pressure medication sandoz blood pressure medication exercise high blood pressure medication grapefruit pills blood pressure treatment for high blood pressure at home blood pressure medication for patients with osa cycle on off blood pressure medication blood pressure drugs that do not cause heat sensitivity blood pressure medications that do not cause coughing what blood pressure medications do not cause rosacea pfizer blood pressure medication side effects do garlic pills really help lower blood pressure should i take medication for anxiety induced blood pressure treatment for uncontrolled blood pressure decongestant medication high blood pressure can stiff days be used with high blood pressure medication how long does it take medication to lower blood pressure what if i miss a blood pressure pill tribenzor high blood pressure pills law lawsuit 2023 treatment of sudden drop in blood pressure zoloft and blood pressure medication orange high blood pressure pill cancer blood pressure pill why cant people with high blood pressure take keto pills how long for blood pressure to go down mini pill should i get second opinion before taking blood pressure medication blood pressure erectile dysfunction medication high blood pressure medication m lot ben medical device lowers blood pressure puppy ate blood pressure pill are there medications for low blood pressure dod blood pressure medication is losartan a blood pressure pill combination drugs for blood pressure marijuana and blood pressure medication interaction blood pressure medication interactions with grapefruit can you eat bananas while taking high blood pressure medication steps before going on high blood pressure medication blood pressure medication when to cut down foods to avoid on blood pressure medication blood pressure medications depression blood pressure medication non beta blocker tattoos and high blood pressure medication what is the medications used to lower blood pressure quickly high blood pressure medication leg swelling blood pressure medication men in your 40s blood pressure medication wieight loss blood pressure medication hy can blood pressure medication lower blood sugar does blood pressure medication make you pee natural treatment high blood pressure during pregnancy can you take l arginine with high blood pressure medication what class of blood pressure medication can can blood pressure pills reduce appetite faa approved medication for high blood pressure high blood pressure medication during pregnancy best blood pressure medication for type 2 diabetes blood pressure and pain medication pain medication that does not affect blood pressure best high blood pressure drugs on the market if you take incorrect medications to lower blood pressure low blood pressure treatments does your body have to adjust to blood pressure medication why water pill for high blood pressure drugs for treatment of very high blood pressure during pregnancy can i drink grapefruit juice with high blood pressure medication can blood pressure pills make you feel cold high blood pressure medication that helps with weight loss amlodipine blood pressure drug blood pressure medication for infants varicose veins blood pressure medication life extension high blood pressure medication does tylenol interfere with blood pressure medication can i take diamox with other high blood pressure medications prestige medical blood pressure cuff calibration drugs used for high blood pressure chamomile tea and high blood pressure medication narcotics stored alongside blood pressure medications in does nutrigrove blood pressure pills work extremely low blood pressure treatment blood pressure medication for iga nephropathy blood pressure medication low side effects can i increase my blood pressure medication what is the best blood pressure medication to take drugs that cause increased blood pressure does biotin interfere with high blood pressure medication cani od on high blood pressure pills blood pressure medication that also helps with jerking blood pressure medication categories first line treatment of high blood pressure medication for low blood pressure in usa armour thyroid drug interactions blood pressure meds hepatitis c treatment high blood pressure high blood pressure arb drugs low blood pressure treatment with essential oils high blood pressure medication list for pregnancy blood pressure medication and snake venom blood pressure medication low dose liquid blood pressure medications ivf drugs and high blood pressure left my blood pressure medication does it matter when you take blood pressure medication can you take blood pressure pills twice a day privilin blood pressure medication how big are blood pressure pills once you start blood pressure medication can you stop diuretic in blood pressure medication what medication reduce blood pressure new blood pressure treatment prescribed home medications for high blood pressure blood pressure medication side effects forums taking blood pressure pills dizzy when bend over a lot blood pressure medication and nyquil cinnamon pills and high blood pressure temporary high blood pressure treatment single agent blood pressure medication blood pressure medication made in china fda approved medications to reduce blood pressure immediate treatment for high blood pressure at home best time to take blood pressure pills muscle loss on high blood pressure medication blood pressure medication when needed treat high blood pressure without medication blood pressure medication side effects for men cbd pills for high blood pressure blood pressure regulation without medication blood pressure medication and pre workout high blood pressure alzheimer disease and antihypertensive treatment miss blood pressure medication blood pressure pills suicide peaceful emergency drugs for low blood pressure common blood pressure medications in canada systolic blood pressure define medical viril and high blood pressure pills can statin drugs help lower blood pressure do you have to wean off blood pressure medication new drugs for blood pressure when is high blood pressure medication necessary drugs for hi blood pressure cold medications and blood pressure taking 2 blood pressure pills mistake why doctors stopped prescribing blood pressure medication common high blood pressure medication canada what side effects does blood pressure medication have ulcer medication high blood pressure can high blood pressure medication elevate alkaline phosphatase blood pressure medication warning getting blood pressure medication jamaica alkaline water and blood pressure medication blood pressure going up and down with medication drugs reduce systolic blood pressure treatment for rapid high blood pressure low blood pressure alternative treatment do all high blood pressure medications cause weight gain medication for increasing blood pressure blood pressure medication for african american males vitamins for high blood pressure treatment aleve with blood pressure medication how to lower blood pressure without pills blood pressure triple pill who blood pressure guidelines for hygiene treatment what drug reduces blood pressure blood pressure medications enalapril met blood pressure medication