Former US President Donald Trump has suffered another setback in civil proceedings surrounding allegations of financial fraud. A New York appeals court yesterday rejected a Republican request to suspend the trial scheduled to begin on Monday. This means that the civil trial surrounding Trump’s past disclosures about the value of his properties is expected to begin as planned at the beginning of the week.
The 77-year-old man, who wants to regain the White House next year, had already suffered a serious legal defeat on Tuesday. The judge responsible for the case, Arthur Engoron, considered it proven that Trump had intentionally exaggerated the assets of his real estate empire in the past to obtain better conditions, for example for loans. The real estate tycoon was therefore guilty of “fraud”.
This means that a central procedural issue has already been clarified before the trial begins. Engoron also canceled business licenses for a number of Trump properties, including the iconic Trump Tower in Manhattan. The exact impact of this decision is not yet clear, but Trump could lose control of important parts of his real estate portfolio.
New York State Attorney General Letitia James sued Trump and several of his children in September 2022 over allegations of financial fraud. The Trump Organization’s family holding company allegedly overstated assets by several billion dollars between 2011 and 2021 in order to obtain loans and insurance on more favorable terms. Trump denies the allegations, but Judge Engoron ruled in favor of James.