Judge Engoron ruled in a civil case brought by New York Attorney General Letitia James that the former US president and his company deceived banks, insurance companies and others by greatly exaggerating his assets and exaggerating his net worth in the records.
This means that Trump committed fraud for years while building his real estate empire, which brought him to prominence and, ultimately, the White House. James is asking for fines of 250 million dollars (around 235 million euros).
Value multiplied with “simple tricks”.
James sued Trump in September 2022, accusing him and the Trump Organization of lying about the value of assets and his net worth for a decade in order to obtain better terms on bank loans and insurance.
She claims Trump inflated his net worth by as much as $2.23 billion and, in one case, as much as $3.6 billion, in annual financial reports to banks and insurance companies. She accuses Trump of using simple and fraudulent tricks to multiply the value of his most important properties – from Trump Tower to the Mar-a-Lago estate in Florida. For example, Trump declared the size of his Trump Tower apartment to be about 2,800 square feet for years, even though it was only a good 1,000 square feet. As a result, the property was overvalued by as much as $200 million.
Trump in the “fantasy world”
In his decision, Judge Engoron was harsh: the former president and the other defendants, including his two adult children and his company, were ignoring reality when it suited their business needs. His world is a “fantasy world, not the real world.” The judge also imposed $7,500 fines on Trump’s lawyers for making arguments he had previously rejected. Trump’s daughter Ivanka, originally also charged, was removed from the case.
Court of Appeal must decide
Trump has previously denied any wrongdoing and accused James, a Democrat, of political motives. His lawyers also tried to support the defense, pointing out that the banks that lent money to Trump were hardly victims but rather made profits.
The former president had already filed a lawsuit against Judge Engoron, which will likely be decided by an appeals court this week. A state appeals court also concluded three months ago that some of the allegations were now time-barred. Trump accused Engoron and James of ignoring that decision and requested the trial be postponed. The appellate court also rules on this. If Trump’s attempts are rejected, the rest of the case will have to be resolved in court.
Next burden for the election campaign
And in this case, Attorney General James has a good chance after the judge’s ruling. Engoron’s decision is just a legal burden for Trump: It also tarnishes the image of the shrewd real estate mogul that served as the basis for his later career.
Trump has been locked in numerous conflicts with the US judiciary for decades. Even as a construction magnate, he was involved in legal disputes. Even during his presidency, from 2017 to 2021, he was repeatedly targeted by the judiciary. Since the end of his presidency, Trump has struggled on several fronts with legal problems or investigations that could have legal consequences for the 77-year-old. Trump wants to run again in next year’s presidential election.