Trump Fraud Civil Suit Starting Monday Threatens to End his Business Career – Just a few miles south of Trump Tower in New York City, a judge is set to preside over a trial on Monday where allegations of fraud within the Trump Organization will be heard. This trial could potentially result in Donald Trump and his family business facing damages amounting to hundreds of millions of dollars, and it has already posed a significant threat to his business career in the city where it all began.
New York’s Attorney General, Letitia James, has accused Trump of employing false and deceptive financial statements from 2011 to 2021 to inflate his personal wealth and the wealth of his businesses. These actions allegedly aided him in securing deals and obtaining financing. Drawing from a comprehensive three-year investigation, James contends that Trump is liable for a minimum of $250 million for his involvement in fraudulent activities.
During the extensive three-year investigation, James uncovered that Trump had inflated the values of 23 of his properties and assets by potentially hundreds of millions, if not billions, of dollars. These manipulated financial statements were allegedly used by Trump to secure advantageous loans and present a higher net worth than his actual financial standing. Trump said he will appear in court on Monday.
“I’m going to Court tomorrow morning to fight for my name and reputation,” he said on his Truth Social account on Sunday. The trial is a bench trial, indicating that there won’t be a jury present. The sole decision-maker in this case is New York Supreme Court Justice Arthur Engoron, who is overseeing the proceedings. Since this is a civil trial, a guilty verdict would not result in Trump being sent to prison, and he is not obligated to attend court in person.
The Trump camp has encountered difficulties thus far. In a recent development, on the previous Tuesday, Judge Engoron declared Trump guilty of fraud, citing the submitted documents as evidence of a consistent use of inaccurate financial statements. Trump, he said, was working within a “fantasy world, not a real world.” Engoron said in his ruling that the attorney general’s office will have to provide evidence of “some component of intent and materiality” in Trump’s fraudulent financial statements.
The judge handed down a dramatic penalty to Trump and his adult sons, Donald Trump Jr. and Eric Trump. Their business licenses will be revoked, making it extremely challenging for them to conduct business in New York. Adding to their woes, a substantial fine may be imposed. The attorney general’s office aims to demonstrate the need for disgorgement of profits earned by the Trump family based on their manipulated financial statements.
James’s office contends that Trump obtained loans using these fraudulent statements to acquire properties such as the Trump golf club in Miami, Trump International Hotel and Tower in Chicago, and the Old Post Office building in Washington DC. According to the attorney general, any profits from these ventures were generated through deceitful means. While Trump and three of his children, including Ivanka Trump, are listed as potential witnesses, it remains uncertain whether they will be summoned to testify.
Even if they are called, they retain the option to decline, but the judge may consider this when rendering his decision. The trial is set to continue until December 22nd, although it is probable that it won’t extend for that entire duration. This is because the judge’s pre-trial ruling already resolved a critical issue: whether Trump was indeed involved in fraud. The case has now shifted its focus to determining the extent of the financial penalties he will face.