In a shocking turn of events, Judge Arthur Engoron of New York has delivered a ruling that has left the business world reeling. The Trump Organization, according to the ruling, committed a massive $400 million fraud by inflating property values.
Newsweek, on September 27, 2023, reported this decision, dubbed by some as the “corporate death penalty.” The case, which began with a claim of $250 million by New York Attorney General Letitia James, unveiled more than just financial irregularities.
The bombshell decision? Engoron ordered the revocation and transfer of The Trump Organization’s business licenses to neutral third parties. Such a move could cripple Trump’s empire.
Moreover, each of Trump’s lawyers was slapped with a hefty $7,500 fine for presenting what Judge Engoron slammed as “indefensible” defenses. One eyebrow-raising defense was that property size could be “subjective.” Engoron’s retort? “That is a fantasy world, not the real world.”
The stakes were set high as the court-imposed fines exceeded what AG James had requested. Trump’s lawyers, in a whirlwind of maneuvers, tried moving the case to another judge and even took legal action against Engoron.
The judge, in no uncertain terms, declared last week, “False business statements are unacceptable.”
While Trump’s lawyers remain silent, Andrew Lieb, an attorney, raised alarms about the detrimental effects this ruling might have on Trump’s legal team. Lieb criticized the lawyers, noting their pattern of facing criminal charges, disbarments, and civil cases.
In a fiery retaliation, Trump labeled Engoron a “Democrat operative.” On his platform, Truth Social, he made staggering claims about the worth of his Mar-a-Lago property – suggesting its value is almost 100 times its appraisal.
Michael Cohen, a former attorney for Trump, has given a grim forecast. Cohen warns that fines exceeding $600 million might plunge Trump and his organization into bankruptcy. Even the initially claimed $250 million would pose significant challenges, especially considering assets like the iconic 40 Wall Street building in Manhattan.