Trump committed property fraud, judge rules

Donald Trump committed fraud to build his property empire, a New York judge has ruled. In a strongly worded rejection of the former president’s attempt to have the civil lawsuit against him thrown out, Justice Arthur Engoron said that Trump, his oldest sons and his business are liable for orchestrating a “persistent and repeated fraud”, which saw them vastly inflate the value of properties in New York and Florida, along with golf courses in the US and Scotland. The order was handed down days before the trial was due to start on a civil case against the former president and his family firm, brought by New York state attorney-general Letitia James. Engoron ruled that Trump and associates committed fraud, and ordered the cancellation of business certificates for the Trump Organisation. He also rebuked Trump’s five lawyers for making “preposterous” legal arguments, fining them $7,500 each. Engoron’s summary judgment resolves the key claim in James’s lawsuit, although six others remain. He said a jury would be left to determine further damages and whether the defendants are also liable for issuing false financial statements and insurance fraud. The decision in the New York state court in Manhattan comes ahead of a trial in the case brought by James, which is set to begin on Monday. James had asked the judge to make a summary ruling before the trial, arguing that there was “undisputed evidence” that Trump and associates inflated his net worth by up to $2.2bn for a decade, including the four years while he was in the White House. Engoran rejected his argument that a disclaimer in the company’s financial statements absolved him. James is seeking $250m in fines and a ban on Trump doing business in his home state of New York, claiming that the Trump Organisation submitted “grossly inflated” numbers to banks and insurers “to secure and maintain loans and insurance on more favourable terms”. Engoron agreed with James that assets including the Trump Park Avenue skyscraper and a property on Wall Street were unlawfully inflated, and further ordered that several of Trump’s New York businesses be dissolved, accusing them of continuing to “disseminate false and misleading information” even after a monitor was appointed by the court last November. As well as inflating assets to secure favourable loans, Trump is accused of deflating the value of other properties, including his Mar-a-Lago resort in Florida, skyscrapers, golf clubs and hotels to reduce the company’s tax burden. In a statement released on his Truth Social platform, Trump said the ruling was a “terrible reminder that the Radical Left Democrats will stop at nothing” to prevent him from returning to the White House. Trump, currently the front-runner for the Republican nomination for the 2024 election, and the odds-on favourite to win, also faces 91 criminal charges under four indictments. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo by Shutterstock