A judge in New York concluded that former U.S. President Donald Trump and his family business committed fraud to inflate the value of his properties and other assets, representing a major setback that could hinder his ability to conduct business in the state. The decision by New York State Judge Arthur Engoron in Manhattan makes it easier for state Attorney General Letitia James to seek financial penalties against Trump and his associates amounting to $250 million or more in a trial set to take place on October 2.
Engoron also decided to revoke licenses allowing some of Trump's firms, including the Trump Organization, to operate in New York and ordered the appointment of a court-appointed receiver to manage the process of dissolving the companies. The judge detailed how Trump, along with his sons Donald Jr. and Eric, the Trump Organization, and other defendants inflated net worth figures to suit their business needs in the state.
However, Trump and the other defendants stated that they did not commit fraud or that the transactions were profitable. They mentioned their intention to appeal Engoron's decision. Trump's attorney Christopher Kise stated in a statement, "Today's outrageous decision has nothing to do with the facts and the law." He added, "President Trump and his family will use all available means to correct the course of justice."
Trump described the fraud allegations against him as "ridiculous and untrue" on his social media platform Truth Social. He is seeking the Republican nomination to compete in the 2024 U.S. presidential race and remains at the forefront of the contest despite facing criminal charges in multiple cases.
Letitia James filed a lawsuit against Trump in September of last year, accusing him, three of his adult sons, and the Trump Organization of fraud over a decade related to asset valuations and net worth to deceive banks and insurance companies into obtaining better financing and insurance terms. Engoron noted that James provided "irrefutable evidence" that Trump overstated the value of his net assets by between $812 million and $2.2 billion.
Trump has pleaded not guilty to other charges against him, including attempting to overturn his defeat in the 2020 presidential election against Democratic President Joe Biden, hiding government secret documents, and covering up payments made to silence a pornographic actress about their relationship.
