Judge rules that Donald Trump defrauded banks and insurers while building his real estate empire

A New York judge on Tuesday refused to dismiss New York State Attorney General Letitia James’ lawsuit accusing Donald Trump of illegally inflating his assets and net worth, ruling that Trump and the Trump Organization are responsible for fraud, explains Reuters. The decision was issued by Judge Arthur Engoron of the New York state court in Manhattan, and in it he declares Trump (2017-2021) responsible for one count of fraud in the civil process promoted by the New York State Attorney’s Office , which accused him of inflating his company’s assets for years to obtain better loan conditions and other economic benefits.

In the decision issued this Tuesday, Judge Arthur Engoron agreed with the Prosecutor’s Office, which last week requested a partial summary judgment on the main charge in the case, that of fraud against Trump, his sons Donald Jr. and Eric, the Organization Trump and several associates, leaving six other crimes to be resolved in the trial scheduled for October 2.

Judge Arthur Engoron, ruling Tuesday in a civil lawsuit brought by New York’s attorney general, found that the former president and his company deceived banks, insurers and others by massively overstating his assets and exaggerating his net worth on paperwork. used to make deals and secure financing, reports the AP agency.

The decision, days before the start of a bench trial in Attorney General Letitia James’ lawsuit, is the biggest setback yet for Trump as a wealthy real estate mogul turned political leader.

According to the judge, Trump, his company and his top executives repeatedly lied in their annual accounts, achieving compensation such as favorable loan conditions and lower insurance premiums, according to Engoron.

Those tactics crossed a line and violated the law, the judge said, rejecting Trump’s argument that a disclaimer in the financial statements absolved him of any wrongdoing.

Manhattan prosecutors had considered pursuing a criminal case for the same conduct but waived, leaving James open to suing Trump and seeking sanctions that could affect his and his family’s ability to do business in the United States. the state.

Engoron’s ruling, in a phase of the case known as summary judgment, resolves James’ key claim, but six others remain.

Engoron plans to hold a bench trial starting Oct. 2 before deciding on those claims and any sanctions it may impose. James is demanding $250 million in fines and a ban on Trump doing business in his home state of New York. The trial could last until December, Engoron has said.

Trump’s lawyers had asked the judge to dismiss the case, which he refused. They maintain that James was not legally authorized to file the lawsuit because there is no evidence that the public was harmed by Trump’s actions. They also argued that many of the lawsuit’s allegations were time-barred.

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