The ruling, handed down on September 26 by Judge Arthur Engoron in New York state court in Manhattan, will allow New York Attorney General Letitia James to determine damages in a trial scheduled for October 2.
Judge Engoron said Ms. James presented strong evidence that Mr. Trump inflated his net worth by $812 million to $2.2 billion.
A New York judge ruled that former President Donald Trump and his family business committed fraud. Photo: Reuters
According to Reuters news agency, Judge Angoron also ordered the cancellation of the business licenses of several of Mr Trump’s businesses, including the Trump Organization operating in New York, and ordered the appointment of an asset manager to take over the settlement enterprise unit.
Judge Engoron described how Mr. Trump, his child Donald Jr. And Eric, the Trump Organization board, and other defendants inflated and inflated Mr. Trump’s net worth to suit their business needs. The defendants’ lawyers were also penalized for making “irrational” legal arguments and supporting their clients’ “unruly” behavior.
Mr. Trump and the defendants said they did not commit fraud and planned to appeal. Mr. Trump’s lawyer, Christopher Keese, said, “Today’s absurd decision by the court is completely inconsistent with reality and current law. Former President Trump and his family will find every way to appeal the decision and resolve this mistake. “
Mr Bill Black, a financial management scholar at the University of Minnesota Law School, said revoking business licenses could affect Mr Trump’s ability to make money.
The adverse ruling came as Mr Trump was leading the race for the 2024 Republican presidential nomination.
Mr Trump attacked Attorney General James, a member of the Democratic Party, saying her lawsuit and other cases against him were part of a politically motivated “witch hunt”.
Ms. James sued Mr. Trump in September 2022, accusing him, his son and the Trump Organization of lying for a decade about his assets and net worth to defraud banks and insurance companies. Insurance offers them better terms.