NEW YORK CITY, NEW YORK: Former president Donald Trump has faced a substantial setback in a New York courtroom. Judge Arthur F Engoron, who presides over the Supreme Court 1st Judicial District in New York, delivered a ruling that convicted Trump and his company of committing fraud over several years.
This ruling came as a result of a civil lawsuit filed by New York State Attorney General Letitia James, alleging that Trump had inflated property valuations with lenders and diminished them with tax authorities.
The implications of this decision are far-reaching, potentially impacting Trump's financial empire and his future in politics.
Judge Arthur F Engoron seen as experienced judge in law circles
Engoron was elected unopposed to the State Supreme Court bench in the 2015 general election because of his experience. He had previously been elevated to serve as an acting State Supreme Court Justice in 2013.
He also has a background in the New York City Civil Court, where he served for over a decade, according to Ballotpedia. His prior experience in the legal field adds weight to his ruling in this high-profile case.
The heart of the matter in this legal battle revolves around allegations of fraudulent practices by Donald Trump and his company. Letitia James filed the lawsuit last year, claiming numerous acts of fraud.
She contends that Trump and his company deceived banks, insurers, and others by massively overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing.
One of the staggering claims is that Trump inflated asset valuations by up to $2 billion. This tactic allegedly allowed him to secure favorable loan terms and lower insurance premiums, thereby gaining a substantial financial advantage.
Donald Trump calls it 'sad day' for NY's justice system
In response to Judge Engoron's ruling, Donald Trump took to Truth Social, a social media platform he has been actively promoting, to express his dissatisfaction.
He called it "a very sad day for the New York State System of Justice" and emphasized his perspective on the situation.
"Today's Ruling about a Company that has done a magnificent job for New York State fails to acknowledge the fact that Murder and all other forms of Violent Crime have reached record levels in New York State," he wrote.
"Can you imagine ruling against me for having done business perfectly, and yet letting people go on a rampage on the sidewalks of New York? This is the Judicial conduct that is forcing thousands of companies to flee New York for other environs, while virtually nobody comes back to the City or State," the former president added.
This civil lawsuit is just one of the legal battles Donald Trump is currently embroiled in. He faces multiple criminal indictments in various jurisdictions related to his efforts to overturn the 2020 election and other matters, making this lawsuit another layer in the complex legal landscape he is currently navigating.
Trump could be banned from doing business in NY
Engoron's ruling on Tuesday, September 26, was a pivotal moment in this ongoing legal saga. It represents an attack on Trump's carefully crafted image as a wealthy real estate mogul who transitioned into a powerful political figure.
The judge found that Trump, his company, and key executives repeatedly lied about their financial status on annual financial statements.
These falsehoods led to tangible advantages, including favorable loan terms and lower insurance premiums.
Trump's legal team had attempted to have the case thrown out, arguing that there was no evidence of public harm resulting from Trump's actions and that many of the allegations were barred by the statute of limitations.
However, Judge Engoron denied their request, allowing the lawsuit to proceed.
What comes next in this legal battle is a non-jury trial set to commence on October 2, 2023.
During this trial, Engoron will consider the remaining six claims in Letitia James' lawsuit and any potential penalties.
James is seeking $250 million in penalties and a ban on Trump conducting business in New York, his home state.
The trial is expected to extend into December, ensuring that this case will continue to be a focal point in legal and political circuits.
