Third, James could permanently ban Trump and his associates, including Donald Trump Jr.The amount is large enough that experts say it could force Trump to sell assets. Second, Trump and other defendants could be required to pay a $250 million fine, the amount New York Attorney General James sought in her original complaint filed last year.First, Trump's entire New York business operation, now deemed fraudulent, could be turned over to a receiver who would effectively take control of the firms and liquidate them at a public auction.One immediate possibility is that Trump could be forced to liquidate "assets that he made his reputation on and very much cherishes," Coffee said.Įxperts told NPR the legal threat to Trump now comes in three distinct forms. ![]() Engoron has signaled he will clarify his ruling at a future hearing, and a fraud trial is set for next week in his Manhattan courtroom. " is greatly at risk," said John Coffee, a professor at Columbia University's law school who also directs the university's Center on Corporate Governance.Īccording to Coffee, there is still significant uncertainty about what will happen next. Those holdings including 40 Wall Street, also known as the Trump Building, and Trump Tower. He also ordered the naming of independent receivers who will "manage the dissolution" of limited liability corporations that hold many of Trump's most prized assets. ![]() That's because as part of this summary judgment, Engoron cancelled certificates that allow many of Trump's companies to operate under New York state law. Trump could be forced to liquidate assets While the judge's decision on Tuesday doesn't end the legal wrangling in this civil case, experts interviewed by NPR agreed that it poses unprecedented danger to Trump's businesses. Trump's company was found guilty last December of 17 counts of criminal tax fraud and falsifying business records. In 2017, while serving in the White House, Trump agreed to pay $25 million to settle fraud allegations linked to a project he called "Trump University." In 2019, he agreed to pay $2 million to settle charges that he illegally diverted charitable funds to pay for his political operations. Trump's business operations have faced serious legal setbacks many times before. No matter how much he tries to distract from reality, the facts don’t lie."Īhead of the trial in September, presiding Judge Arthur Engoron issued a partial summary judgment that found Trump and the other defendants liable for defrauding banks and insurers.Law A judge says Trump is liable for fraud in New York civil lawsuit In response, James issued a statement saying, "Whether or not Trump testifies again tomorrow, we have already proven that he committed years of financial fraud and unjustly enriched himself and his family. The former president was slated to testify during Monday's proceeding but announced on his social media platform, Truth Social, Sunday that he would no longer be taking the stand. On Monday, the trial entered its 11th week. Her civil fraud case, which seeks $250 million in penalties and a ban on Trump's, his sons' and other key Trump Organization executives' ability to do business in the state, accuses the defendants of knowingly inflating the value of their assets on statements of financial condition to obtain better loan terms and deals. ![]() But as the judge said today, 'the standard is truth.' And the truth is on our side," James said in the message. "Donald Trump can continue to try to distract from reality. That witness is Eli Bartov, a research professor at New York University's Stern School of Business, who has charged Trump at least $877,500 in fees for his testimony amounting to an hourly rate of $1,350, according to Business Insider. Of the 11 experts called by the defense, two testified for free, and the rest cost Trump's legal team over $2 million. "He also had a lot to say about Donald Trump's statements of financial condition, even though he has not prepared a financial statement since the 1980s," she said of Trump's third witness. Subscribe today to support Salon's progressive journalism
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