Donald Trump suffered yet another legal defeat this week after a New York judge ruled that he had overinflated the value of several assets in order to secure beneficial financial agreements.
Judge Arthur Engoron ruled against the Trump Organization on Tuesday as part of a civil fraud case. Judge Engoron determined that the former president had overvalued his Mar-a-Lago home by 2,300% while claiming his New York penthouse at Trump Tower was three times its actual size. The overvaluations amounted to $2.2 billion guaranteeing larger loans and lower insurance rates than otherwise would be received.
Members of the Trump family were quick to lambast the decision. Republican frontrunner Donald slammed the “highly politicized Democrat judge” for ruling against him, while son Eric said he had lost “all faith in the New York legal system” and had never “seen such hatred toward one person by a judge.”
“We have run an exceptional company — never missing a loan payment, making banks hundreds of millions of dollars, developing some of the most iconic assets in the world. Yet today, the persecution of our family continues…” he said on X, the site formerly known as Twitter.
Attorneys for Donald Trump said they will appeal the “fundamentally flawed” decision.
Legal Defeat from Hell: What Happens Now?
As part of the ruling against the former president, Judge Engoron canceled a number of business certificates belonging to the key figures within the Trump Organization, effectively preventing them from doing business in the state. This order applies to any form controlled or owned by Donald Trump, Donald Jr., and Eric, as well as former high-profile officials Allen Weisselberg and Jeffrey McConney.
Several Trump operations in New York are likely to be impacted, including Trump Tower in Manhattan, Trump National Golf Club in Westchester County, and the Trump Building in Wall Street. The Trump Organization’s entities outside of New York can continue to operate as normal.
By the end of next week, those subject to the order must recommend at least three potential receivers to manage the dissolution of the limited liability companies owned or controlled by those subject to the cancellation order. The process could lead to a forced closure of the affected Trump Organization entities, as well as a possible sale of their underlying assets.
In court on Wednesday, Trump attorney Chris Kise was told by Judge Engoron that the specific entities impacted would be discussed and decided in a future private meeting between counsel.
The civil fraud trial is set to begin on Monday, which will also determine any financial penalty to be incurred in the case. The decision could cost former president Trump hundreds of millions of dollars, while also barring him from making real estate purchases and applying for loans in New York.
Shay Bottomley is a British journalist based in Canada. He has written for the Western Standard, Maidenhead Advertiser, Slough Express, Windsor Express, Berkshire Live and Southend Echo, and has covered notable events including the Queen’s Platinum Jubilee.