In the latest among the multiple lawsuits filed against former US President Donald Trump over the years, a New York judge on Tuesday (September 26) ruled that Trump committed fraud by misrepresenting his wealth. Trump then sued the judge, claiming some of the evidence against him should be disqualified and the trial be delayed, but this was rejected by an appeals court on Thursday. While the consequences of other trials and indictments against Trump have been unclear at times, in this case, the September 26 ruling could lead to him losing some major properties – such as the iconic Trump Towers in New York’s Manhattan. What is Trump accused of and what happens next? We explain. What is the case of fraud against Trump? The case of fraud was initiated by New York Attorney General Letitia James. Judge Engoron, ruling in a civil lawsuit, “found that Trump and his company deceived banks, insurers and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing loans,” the Associated Press reported. Today, I filed a lawsuit against Donald Trump for engaging in years of financial fraud to enrich himself, his family, and the Trump Organization. There aren't two sets of laws for people in this nation: former presidents must be held to the same standards as everyday Americans. — NY AG James (@NewYorkStateAG) September 21, 2022 James has said that her office aims to secure at least $250 million in penalties from Trump, a ban against him and his sons Donald Jr and Eric from running businesses in New York, and a five-year commercial real estate ban against Trump and the Trump Organisation. For decades, Trump built an image as a business-savvy real estate mogul. This reputation and his sizeable net worth also added to his appeal when he was running his campaign during the 2016 US Presidential elections. The Attorney General said on the social media platform X back in September 2022: “We found that Trump, his family, and the Trump Org used fraudulent and misleading asset valuations over 200 times in 10 years on his annual financial statements. These statements were then used to obtain hundreds of millions of dollars in loans and insurance coverage.” Further, she alleged that with the help of his children Donald Jr., Eric, Ivanka and some other people, Trump “variously unlawfully inflated and deflated his net worth by billions to obtain and satisfy loans, get insurance benefits, and pay lower taxes… In short, he lied to gain massive financial benefits for himself.” James argued that the case was brought because “When the well-connected and powerful break the law to get more money than they are entitled to, it reduces resources available to working people, small businesses, and taxpayers.” What did the judge rule? Trump had sought to have the case thrown out of court, but Justice Arthur F Engoron did not agree to this appeal. The ruling has meant effectively that “no trial was needed to determine that he had fraudulently secured favorable terms on loans and insurance deals,” The New York Times reported. The Judge ordered that Trump’s business licenses be rescinded as punishment, “making it difficult or impossible for them to do business in New York, and said he would continue to have an independent monitor oversee Trump Organization operations,” the AP’s report added. Engoron found that Trump “consistently overvalued” his Florida estate Mar-a-Lago, inflating its value on one financial statement by as much as 2,300 per cent. He was also rebuked for lying about the size of his Manhattan apartment, claiming it to be nearly three times as big as it was. This ruling was a “summary judgement”. “In a civil case, either side, making an argument that some or all of the facts of a case are undisputed, can ask the judge for a decision without a full trial,” according to the NYT. The summary judgement said that these charges were a result of a years-long investigation by the Attorney General’s office. “Under the ruling, limited liability companies that control some of Trump’s key properties, such as 40 Wall Street, will be dissolved and authority over how to run them handed over to a receiver. Trump would lose his authority over whom to hire or fire, whom to rent office space to, and other key decisions,” the AP reported. And what has Trump argued in his defence? Trump said in response: “My Civil rights have been violated, and some Appellate Court, whether federal or state, must reverse this horrible, un-American decision,” writing on his social media website Truth Social. His lawyer Christopher Kise said the decision would be appealed, calling the decision “completely disconnected from the facts and governing law.” Trump had sued Engoron in September and alleged that some of the instances mentioned by James were now too old to be tried in court. They then argued that the trial should be delayed. However, this request was denied recently. His legal team had also asked the judge to throw out the case, arguing that there wasn’t any evidence the public was harmed by Trump’s actions. So what will happen now in the trial? The trial will begin next week. Attorney General James said that further evidence for their case would be presented in it. The damages that would have to be paid will likely be known after it. Trump has already been indicted in four cases related to hush money payments to ex-porn star Stormy Daniels, illegally holding official documents of the government after stepping down from the top post and two cases related to election interference. But these cases and even possible convictions will not, from a legal perspective, prevent him from contesting elections in 2024. Already, he is the frontrunner among the Republican nominees.
