The real estate empire of former US President Donald Trump may face a potentially devastating blow as he could be banned from the real estate business in New York. This comes after a heated trial in which Trump was accused of securing loans with false financial statements for several years, with the court set to announce its ruling this week.
The civil lawsuit, brought by New York Attorney General Letitia James, accuses Trump and officials at The Trump Organization of creating over 200 inflated financial evaluations between 2011 and 2021 in order to secure favorable loans from banks and insurance companies. The lawsuit seeks a $250 million penalty against Trump and his organization.
In a summary judgment, presiding Judge Arthur Engoron ruled that Trump had committed years of fraud by massively inflating his real estate worth to lenders. The judge dissolved some of Trump’s companies and ordered to revoke the business license of The Trump Organization, appointing an independent monitor to oversee the company.
Trump has denied wrongdoing and appealed the ruling, with his lawyers arguing that the lawsuit was politically motivated and that his accountants were responsible for false financial statements. Despite the legal challenges, Trump has continued to rally his supporters and has accused the New York attorney general of targeting him for political reasons.
The civil case could result in monetary penalties and bans, rather than criminal penalties such as jail time. The attorney general has recommended stripping Trump and his children of their leadership roles at The Trump Organization, barring them from real estate buys in New York for five years, and appointing independent monitors for the company.
As the final ruling looms, it is likely to complement previous decisions that some of Trump’s companies have their licenses revoked, some be dissolved, and others be monitored independently.