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Donald Trump found liable for fraud: Will the trial be delayed? Everything we know about the case so far

The New York judge overseeing the civil lawsuit against Trump and his family business determined that the company’s asset values were fraudulently inflated.

Trump faces trial for fraudulent valuations in New York

In a major defeat for Donald Trump, the New York judge overseeing the state’s civil lawsuit against him and his family business handed down a scathing decision that the values of properties and other assets were fraudulently inflated. In Justice Arthur Engoron’s ruling he criticized arguments put forth by Trump’s lawyers as well as taking the unusual step of fining each $7,500 for putting forth “indefensible” arguments even after the judge had previously rejected them.

The judge ordered that the company be put into receivership and that some of the licenses which allow Trump’s businesses to operate in the state to be revoked. Trump and the other defendants have argued that there was no fraud and plan to appeal the decision.

The ruling is part of New York Attorney General Letitia James’ civil case against Trump and his businesses for fraudulently overstating by as much as $2.2 billion his assets on annual financial statements. AG James has alleged in her case that those statements were used by Trump and his two sons, Don Jr and Eric, to mislead banks to get larger loans and insurance companies to receive lower rates than would otherwise have been given.

Donald Trump found liable for fraud: Will the trial be delayed? Everything we know about the case so far

Tuesday’s decision will make it easier for the prosecution to establish damages at a trial scheduled for next week. “We look forward to presenting the rest of our case at trial,” said AG James in a statement.

However, Trump has sued to delay the trial arguing that the judge ignored an earlier appeals court ruling. A decision on his appeal is expected as soon as Thursday which could push back the trial set for Monday 2 October.

The New York Attorney General is seeking a fine of $250 million and to bar Trump and three of his adult children, Don Jr, Eric and Ivanka, from every running a business in the state again.

“That is a fantasy world, not the real world”

Justice Engoron lambasted the arguments from Trump’s lawyers saying they strain credulity like the idea that an apartment’s square footage could be subjective. “That is a fantasy world, not the real world,” wrote the judge.

The judge has often showed his impatience with the lawyers defending Trump including pounding on the bench last week chastising them saying: “You cannot make false statements and use them in business.”

In a rare move, Justice Engoron sanctioned each of the defendants’ lawyers for making “preposterous” legal arguments and encouraging their clients’ “obstreperous” conduct.

Trump posted on his Truth Social platform that the accusations that he committed fraud are “ridiculous and untrue.” He also attacked the judge saying that he was doing the bidding of the attorney general. Trump has previously asked for the case to be moved to another judge and recently sued Justice Engoron himself.

Will Trump’s businesses in New York close?

If the decision is allowed to stand Trump would lose control over several properties in New York including Trump Tower, Trump Building at 40 Wall Street and his Westchester County golf club. A receiver would be appointed to dissolve the companies involved in the civil suit including the Trump Organization, which comprises hundreds of entities not all of which are named as defendants.

However, the rest of his empire outside of the state and what is not listed in the case would remain in Trump’s control, such as Mar-a-Lago and the Bedminster golf club in New Jersey, among others. Trump’s lawyers are planning to appeal and likely ask for an emergency stay of the trial. So, it could be some time until the fate of his businesses and assets are settled.


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