A judge in New York said that Donald Trump often lied about how much money he had to banks and insurance companies, making it seem like he had much more than he actually did.
A judge in New York said that Donald Trump misled banks and insurers by giving false information about how much money he had. This decision is a big setback for Trump before the trial starts next Monday. The judge stated that the documents clearly showed dishonest assessments that Trump used in his business. New York’s Attorney General, Letitia James, sued Trump last year, saying he, along with his two adult sons and his company, lied about how much he was worth from 2011 to 2021.
James claimed they made up fake records and financial statements to get better loans and insurance deals and pay less in taxes. In the upcoming trial, James will ask for $250 million in penalties and for Trump to be banned from doing business in New York. The trial, which doesn’t involve a jury, is set to begin on October 2nd and could last until December. Trump’s lawyers argued that the suit should be thrown out, saying the public wasn’t harmed and the loans happened a long time ago. Trump has said he did nothing wrong and called the case a political attack. He also accused the judge of being biased against him. His lawyers said the decision ignored basic legal, accounting, and business principles.
The judge’s decision on Tuesday means that the Trump Organization must end its business licenses in New York. They also have to suggest independent monitors within 10 days to oversee this process. This is a legal setback for Trump, who is originally from New York but now lives in Florida.
The judge’s ruling won’t dissolve Trump’s company, but it might take away his control over important New York properties like Trump Tower and the Trump Building on 40 Wall Street.
The judge also said no to Trump’s team’s request to dismiss the case. Additionally, five of Trump’s lawyers were fined $7,500 each for making arguments the court had already rejected.
During the court arguments, a lawyer from Attorney General Letitia James’ office said Trump had approved statements that inflated the values given by appraisers his company hired.
Trump’s lawyer, Christopher Kise, argued that this showed Trump was really smart with investments and good at finding value where others couldn’t.
However, the judge’s decision said that Trump didn’t just boast about his wealth. He and his company repeatedly lied about his money matters. He pointed out that in their world, they claimed regulated apartments were worth the same as unregulated ones, and that restricted land was worth as much as unrestricted land. The judge called this a fantasy, not reality.
The judge found that Trump:
- Overestimated Mar-a-Lago’s value by 2,300% in one financial statement.
- He said his penthouse in Trump Tower was three times bigger than it actually was.
- He dismissed the argument that calculating the penthouse’s area was subjective, saying this kind of big difference could only be considered fraud when a real estate developer like Trump was sizing up his own living space.
Trump is still trying to delay the trial in New York and has sued the judge. An appeals court will decide on this lawsuit soon. If they rule against Trump, he’ll have to continue the case in court.
This is just one of many legal battles Trump is involved in, as he plans to run against President Joe Biden again next year and try to go back to the White House. He’s currently the leading contender for the Republican nomination, but he’s also facing 91 serious charges in four criminal cases. He’s pleaded not guilty in these cases.
SOURCE:BBC