Former US President Donald Trump has suffered a serious legal defeat in a New York fraud case. Judge Arthur Engoron ruled that the businessman and his family business could be held liable for fraud. Accordingly, the Trumps submitted false financial reports for about a decade.
They are said to have systematically overestimated the value of the company in annual reports in order to obtain loans and insurance contracts on more favorable terms, according to a preliminary decision on Tuesday.
For example, Trump stated the size of his apartment in Trump Tower as around 2,800 square meters for years, even though it was only a good 1,000 square meters. As a result, the property was overvalued by up to $200 million. The value of his Mar-a-Lago estate in Florida is said to have been inflated by 2,300 percent in financial documents.
Former US President Donald Trump’s lawyers want to appeal the sentence imposed on him and his family business. “Today’s outrageous decision is completely divorced from the facts and applicable law,” Christopher Kise, a lawyer for Trump, said in a statement. “President Trump and his family will exhaust all legal remedies available to correct this miscarriage of justice,” he added.
Trump should pay $250 million in restitution
The court’s decision came just days before the start of the related civil trial between the New York attorney general’s office and the former president. Judge Engoron granted the attorney general’s motion for summary judgment, finding that Trump, his sons and others were liable for violations of New York state law.
The Attorney General’s Office wants Trump to pay $250 million in restitution and no longer be allowed to do business in New York. A final verdict is expected in December.
Trump has been fighting numerous conflicts with the US judiciary for decades. Even as a construction mogul, he was entangled in legal disputes. Even during his presidency from 2017 to 2021, he was repeatedly targeted by the judiciary. Since the end of his presidency, Trump has struggled on several fronts with legal problems or investigations that could have legal consequences for the 77-year-old. Trump wants to run again in next year’s presidential election.