In a civil fraud case, former President Donald Trump and his family business are facing allegations of inflating assets by billions.
Donald Trump, his family business, and his two adult sons are at the center of a civil fraud case brought by Democratic New York Attorney General Letitia James. The case, which is set to go to trial in New York, revolves around allegations that Trump inflated his assets by billions of dollars over a decade to secure more favorable loan and insurance terms.
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According to James’ office, Trump and his associates are accused of inflating the value of his properties by as much as $1.9 billion to $3.6 billion per year between 2011 and 2021. This alleged inflation involved incorrect figures for property sizes and unrealistic assumptions about their development potential.
Justice Arthur Engoron, the judge in the case, ruled on September 26 that James had successfully demonstrated fraudulent inflation of Trump’s assets. As a result, the trial will primarily focus on determining the penalties Trump and his co-defendants must pay.
While this is a civil case, Trump could face significant financial and business consequences. James is seeking a minimum of $250 million in penalties. Additionally, she is pursuing a ban on Trump and his sons, Donald Jr and Eric, from operating businesses in New York. There’s also a proposed five-year ban on Trump and the Trump Organization engaging in commercial real estate activities.
Engoron’s ruling also ordered the cancellation of certificates necessary for 10 of Trump’s business entities to operate some of his prominent properties, including Trump Tower and his New York golf clubs. Independent receivers will be appointed to oversee the dissolution of these entities.
Trump’s legal team has contested James’ figures, arguing that they are based on flawed accounting methods. Trump himself has downplayed the allegations, emphasizing his achievements as president and distancing himself from day-to-day business decisions during a deposition. On his Truth Social platform, Trump labeled the accusations “ridiculous and untrue” and criticized Judge Engoron.
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The trial will shed light on the potential financial repercussions for Trump and his business empire, as well as the future of his assets at the center of this legal dispute.
