N.Y. judge finds Trump committed fraud and sanctions his attorneys

[homersapien 11,461]

https://www.washingtonpost.com/national-security/2023/09/26/ny-judge-finds-trump-committed-fraud-sanctions-his-attorneys/

 

By Shayna Jacobs

 

NEW YORK — A judge overseeing a $250 million lawsuit against Donald Trump ruled the former president and his company committed fraud by inflating his net worth in business transactions, narrowing the scope of what the state’s attorney general must prove at an upcoming civil trial.

New York Supreme Court Justice Arthur Engoron also ordered the cancellation of Trump business certificates and imposed sanctions on attorneys representing him, two of his adult children, two other company executives and the business for repeating arguments that failed multiple times previously and were called “borderline frivolous.”

The judge’s ruling represents a significant setback for Trump by revoking his company’s authority to do business in New York, where the Trump Organization is headquartered and where Trump has major real estate interests. It also represents a victory for Attorney General Letitia James (D), who had asked that Engoron simplify the upcoming trial by deciding in advance that fraud was broadly committed so the state would need to prove only specific illegal acts.

Trump and his attorneys have denied any wrongdoing. Trump spokeswoman Alina Habba said the judge’s ruling Tuesday would be appealed.

Five Trump attorneys have been ordered to pay $7,500 each to a state organization that reimburses clients whose attorneys misused funds. One of the attorneys sanctioned by Engoron is Christopher Kise, a former Florida solicitor general who also represents Trump in federal court there in the indictment over the retention and mishandling of classified documents.

The decision orders the parties to suggest candidates for receivers who will oversee the dissolution of the various entities that make up the Trump Organization’s corporate structure — a ruling that appears to mean the collapse of its operations in New York.

Kise issued a statement on behalf of the defense team calling the decision “outrageous” and “completely disconnected from the facts and governing law.”

“Without even conducting a trial, the Court substituted its own judgment for that of nationally recognized experts from the NYU Stern School of Business and beyond,” Kise said. “More importantly, the Court disregarded the viewpoint of those actually involved in the loan transactions who testified that there was nothing misleading, there was no fraud, and the transactions were all highly profitable.”

James filed a lawsuit against Trump and his company last year alleging that the Trump Organization and its executives defrauded lenders and insurance companies from 2011 to 2021 by inflating Trump’s net worth in business transactions.

By manipulating the value of Trump’s property and other real estate assets by up to $2.2 billion annually, the real estate, hospitality and golf resort company obtained better interest and policy rates than it otherwise would have, according to the lawsuit.

Trump is expected to stand trial along with his sons Donald Trump Jr. and Eric Trump, who served as executives, longtime finance chief Allen Weisselberg and long-serving comptroller Jeffrey McConney.

The trial is scheduled to begin Monday but could be postponed because of an ongoing appellate court issue. It is unclear whether Tuesday’s decision will change the schedule.

A preliminary witness list compiled by the attorney general’s office included nearly 60 names, including the former president. Trump is expected to testify at the trial.

In finding that the defendants committed fraud under the state’s civil law, Engoron will now be left to determine at the bench trial whether specific illegal conduct occurred as well as what other penalties the defendants should face. The case is civil so the defendants can only be found liable for engaging in that conduct and do not face prison.

Trump, however, faces the potential of prison in four unrelated criminal cases, one of which was filed in New York. He could stand trial on those cases next year while he campaigns for the 2024 presidential election.

In the decision, Engoron criticized the Trump defense team’s failed arguments that earned it the sanctions because it kept repeating them.

“Defendants’ conduct in repeating these frivolous arguments is egregious,” Engoron wrote. “The defenses Donald Trump attempts to articulate in his sworn deposition are wholly without basis in law or fact.”

[I_M4_AU 8,012]

In related news:

 

It does seem every time the GOP gets information about Joe; an new allegation appears about Trump like clock work.

[CoffeeTiger 5,185]

1 hour ago, I_M4_AU said:

 

 

It does seem every time the GOP gets information about Joe; an new allegation appears about Trump like clock work.

 

lol . Yes, a daily anti-Biden press release from Comer is totally on the exact same level as a judges decision in an actual court of law. 

 

 

[I_M4_AU 8,012]

9 minutes ago, CoffeeTiger said:

 

lol . Yes, a daily anti-Biden press release from Comer is totally on the exact same level as a judges decision in an actual court of law. 

 

 

You know it isn’t daily, but you go ahead and believe Biden is squeaky clean.

[homersapien 11,461]

7 hours ago, CoffeeTiger said:

 

lol . Yes, a daily anti-Biden press release from Comer is totally on the exact same level as a judges decision in an actual court of law. 

 

 

Thanks for dealing with this fool so I can avoid it.

[Cardin Drake 1,857]

This case is election interference, plain and simple: Kevin O'leary sums it up for dummies.

O'LEARY: Well, let's leave out Trump for a minute, and let's leave out politics, and just talk about what happens in real estate development anywhere. So, if you're a developer and you've got a building on the block, anywhere in America, and it's worth, let's say, $500 million, and you want to build a building right beside it, you go to the bank and say, "This building is worth $500 million. I'd like to borrow a construction finance loan against this asset, and I want you to tell me it's worth $500 million too."

And the bank negotiates with you, and says, "Well no, we think it's worth $400 million," and you fight it out. You are always trying to show your assets in the brightest light with the sunshine you can possibly determine for them. You want them to be worth the very most because you're only going to get a 40 to 50 percent loan to value, as it's called. Then you borrow that money, in the case of a $500 million asset, maybe you get $250 million, and you build the new building with a construction finance loan. So that's what this case is all about. 

And by the way, forget about Trump, every single real estate developer everywhere on earth does this. They always talk about their asset being worth a lot and the bank says no. That's just the way it is. So in this case, what I'm trying to figure out, and I'm not pro or con, or I don't care about the politics, who lost money? Nobody. The bank got paid back the construction finance loan, and a new building was built. If you're going to sue this case and win, you've gotta sue every real estate developer everywhere. This is all they do. This is what they do all day long every day. So I don't think this thing will ever survive appeal regardless of what the fine is. This doesn't even make sense. 

Now look, I understand Trump has a lot of problems in other indictments and everything else, but if you're a real estate developer, you're watching this and saying, "What is this? This is ridiculous."

[AU9377 5,052]

On 9/27/2023 at 9:21 AM, I_M4_AU said:

In related news:

 

It does seem every time the GOP gets information about Joe; an new allegation appears about Trump like clock work.

When Biden was not in public office and funds not directed to him.  Wrote a college letter of recommendation... say it ain't so.  All of this earth shattering evidence....

[I_M4_AU 8,012]

8 hours ago, AU9377 said:

When Biden was not in public office and funds not directed to him.  Wrote a college letter of recommendation... say it ain't so.  All of this earth shattering evidence....

That was in September, a lot has been revealed since then, try to keep up.

[jj3jordan 2,061]

10 hours ago, AU9377 said:

When Biden was not in public office and funds not directed to him.  Wrote a college letter of recommendation... say it ain't so.  All of this earth shattering evidence....

You sure he actually wrote that letter?

[AU9377 5,052]

1 hour ago, jj3jordan said:

You sure he actually wrote that letter?

Are you pretending that he is a vegetable again?

[AU9377 5,052]

3 hours ago, I_M4_AU said:

That was in September, a lot has been revealed since then, try to keep up.

No smoking gun as of today.

[jj3jordan 2,061]

1 hour ago, AU9377 said:

Are you pretending that he is a vegetable again?

Not again just all the time. But no. He tends to use other people’s intellectual material and pass it off as his own. But I’m not pretending. And neither is he. But that is an insult to vegetables.

[AU9377 5,052]

31 minutes ago, jj3jordan said:

Not again just all the time. But no. He tends to use other people’s intellectual material and pass it off as his own. But I’m not pretending. And neither is he. But that is an insult to vegetables.

The last politician I saw do that was the former First Lady when she used Michelle Obama's speech and called it her own.

[jj3jordan 2,061]

48 minutes ago, AU9377 said:

The last politician I saw do that was the former First Lady when she used Michelle Obama's speech and called it her own.

Melania Trump is a politician? 

[AU9377 5,052]

5 hours ago, jj3jordan said:

Melania Trump is a politician? 

True... she is certainly a paid for trophy.

[jj3jordan 2,061]

13 minutes ago, AU9377 said:

True... she is certainly a paid for trophy.

A trophy she definitely is. I’ve seen worse. 

[AURex 2,036]

Trump Corp fraud trial has already convicted Trump Corp of fraud. The current trial is only to determine the extent of damages the Trump Org will have to suffer.

Attempts to deflect to Biden ......... totally irrelevant in this case.

As for Melania, she's gamed it perfectly. She lives the life of a billionaire queen and doesn't even have to hold his hand. hahaha Good on you, girl!