Donald Trump’s fraud trial in New York, scheduled for Oct. 2, has hit a major setback as a state supreme court justice delivered a significant blow even before the trial commenced.
New York’s attorney general, Letitia James, has filed civil charges against Trump, accusing him of grossly misrepresenting his wealth and property values to obtain favorable loan terms for development projects.
While seeking $250 million in civil penalties, James has also requested strict limitations on Trump’s business activities in New York. Recent developments suggest that a New York judge may have granted her wish.
Arthur F. Engoron, a justice on the New York State Supreme Court, surprised legal analysts on Sept. 27 by granting James’ request for partial summary judgment. This means that Engoron will rule on certain facts of the case before it proceeds to trial. In his ruling, Engoron stated that Trump submitted financial documents containing fraudulent valuations used in business.
In addition, Engoron has revoked the business license of the Trump Organization and any other New York businesses controlled by Trump, his sons Donald Trump Jr. and Eric Trump, as well as Trump associates Allen Weisselberg and Jeffrey McConney.
Essentially, Trump’s ability to generate income in his home state of New York may come to an end.
Trump’s arguments are from a “fantasy world”
According to Eric Talley, a law professor at Columbia University, the judge’s pretrial ruling is somewhat unexpected. “Valuation is subjective, with room for differing opinions, and lenders usually conduct their own due diligence,” Talley told Quartz. However, Engoron’s ruling was scathing, describing Trump’s lawyers’ arguments as belonging to “a fantasy world, not the real world.”
Talley stated that rulings like this, where a judge invalidates business certificates of named parties and their affiliates, are extremely rare. In such cases, the businesses are placed into receivership and eventually liquidated.
Trump’s legal team intends to appeal the decision and is also seeking to delay the start of the trial.
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