A New York judge has delivered a devastating blow to Donald Trump’s reputation, ruling that he committed fraud for years while building his real estate empire. Judge Arthur Engoron’s 35-page ruling found that Trump and his company deceived banks, insurers, and others by massively overvaluing their assets and exaggerating their net worth on financial statements used to secure financing.
The ruling, which could have significant implications for Trump’s ability to do business in New York, is the latest in a series of legal woes for the former president. Trump’s company, the Trump Organisation, has been accused of a pattern of duplicity, with allegations of inflating the value of assets such as skyscrapers, golf courses, and his Mar-a-Lago estate in Florida.
Judge Engoron’s ruling cited a number of examples of Trump’s alleged fraudulent activities, including his claim that his Trump Tower apartment in Manhattan was nearly three times its actual size and valued the property at $327 million. He also valued Mar-a-Lago at $739 million, more than 10 times a more reasonable estimate of its worth. The judge rejected Trump’s argument that a disclaimer on the financial statements absolved him of any wrongdoing, stating that such a disclaimer would allow “liars to insulate themselves from liability.”
Donald Trump (Via Donald Trump/Twitter)
The decision is a strong repudiation of Trump’s carefully crafted image as a wealthy and shrewd real estate mogul. It also marks a significant victory for New York Attorney General Letitia James, who sued Trump and his company a year ago, alleging a pattern of duplicity and seeking penalties that could disrupt their ability to do business in the state.
The judge ordered the revocation of some of Trump’s business licenses, making it difficult or impossible for his company to operate in New York. He also appointed an independent monitor to oversee the Trump Organisation’s operations. The case is not yet concluded, with a non-jury trial set to begin in October to determine further penalties and punishments.
The ruling is just the latest in a series of legal headaches for Trump, who is also facing multiple criminal investigations and lawsuits. His company was convicted of tax fraud last year, and one of his top executives pleaded guilty and served time in jail.
