In a 93-page opinion, Judge Engoron bans Trump from serving as an officer or director of any New York corporation or other legal entity in New York for 3 years. MSNBC corrected first report of $364 to 355 million (plus $100 million in interest charges). Appeal to come within 30 days.
- New York Attorney General Letitia James accused former President Donald Trump, his company and others of fraudulently inflating Trump’s assets to boost his net worth and get financial perks.
- Manhattan Supreme Court Judge Arthur Engoron had found Trump and his co-defendants liable for fraud before the case went to trial.
The ruling from Manhattan Supreme Court Judge Arthur Engoron may require a fire sale of Trump holdings. This action is meant to protect the market and may affect loan opportunities as well as other asset values. Then there’s ‘Brand Value’.
Donald Trump and entities he controls own many valuable properties, including office buildings, hotels, and golf courses. Acquiring and developing such properties required huge amounts of cash. Accordingly, the entities borrowed from banks and other lenders. The lenders required personal guarantees from Donald Trump, which were based on statements of financial condition compiled by accountants that Donald Trump engaged. The accountants created these “compilations” based on data submitted by the Trump entities. In order to borrow more and at lower rates, defendants submitted blatantly false financial data to the accountants, resulting in fraudulent financial statements. When confronted at trial with the statements, defendants’ fact and expert witnesses simply denied reality, and defendants failed to accept responsibility or to impose internal controls to prevent future recurrences. As detailed herein, this Court now finds defendants liable, continues the appointment of an Independent Monitor, orders the installation of an Independent Director of Compliance, and limits defendants’ right to conduct business in New York for a few years.
In this civil action, plaintiff, the People of the State of New York, by Letitia James, Attorney General of the State of New York, seeks monetary penalties and injunctive relief against Donald John Trump (“Donald Trump”) (the former president of the United States); Donald Trump, Jr.(“Donald Trump, Jr.” or “Trump, Jr.”) and Eric Trump (two of his sons); Allen Weisselberg and Jeffrey McConney (two former employees of defendant The Trump Organization, Inc.); and various real estate holding entities. Plaintiff essentially alleges (1) that the individual defendants violated New York Executive Law § 63(12) by submitting false financial statements to banks and insurance companies to obtain better rates on loans and insurance coverage; and (2) that the holding entities are liable for the individual defendants’ misdeeds. Defendants (1) allege that the statements were completely or substantially correct; and (2) crow that the borrowers paid back all loans fully and on time. Common Law Fraud The instant action is not a garden-variety common law fraud case. Common law fraud (also known as “misrepresentation”) has five elements: (1) A material statement; (2) falsity; (3)knowledge of the falsity (“scienter”); (4) justifiable reliance; and (5) damages. See, e.g., Kerusa Co. LLC v W10Z/515 Real Estate Ltd. Partnership, 12 NY3d 236, 242 (2009) (“[T]he elements of common law fraud” are “a false representation . . . in relation to a material fact; scienter; reliance; and injury.”). Alleging the elements is easy; proving them is difficult. Is the statement one of fact or opinion? Material according to what standard? Knowledge demonstrated how? Justifiable subjectively or objectively? In mid-twentieth century New York, to judge by contemporary press reports and judicial opinions, fraudsters were having a field day.
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The Court hereby enjoins Donald Trump, Allen Weisselberg, and Jeffrey McConney from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years.
The Court hereby enjoins Donald Trump and the Trump Organization and its affiliates from applying for loans from any financial institution chartered by or registered with the New York State Department of Financial Services for a period of three years.
The Court hereby enjoins Eric Trump and Donald Trump, Jr. from serving as an officer or director of any New York corporation or other legal entity for a period of two years...
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Report: Deutsche Bank ‘Eager’ To Dump $340 Million In Loans To Trump Businesses After Election
Meanwhile RWNJ Lee Zeldin compares Trump to Navalny
Lee Zeldin took to X, formerly Twitter, on Friday to make a post meant as a tribute to Russian dissident Alexei Navalny, who died in a Russian jail while serving a 19-year sentence on extremism charges.
Zeldin, who served New York from 2015 to 2023 before running a failed gubernatorial campaign, decided to mourn Navalny by comparing his situation to Trump’s current legal problems
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