After judge deals major blow to Trump last hearing before $250M civil trial
vidoe : MSNBC
What happened?
Former President Donald Trump and his company suffered a major setback in their legal battle with New York Attorney General Letitia James, who is suing them for $250 million in civil fraud. On September 26, 2023, New York Supreme Court Justice Arthur Engoron ruled that Trump and his co-defendants engaged in “repeated fraud” by submitting “fraudulent valuations” for real estate assets that were then used to obtain better loan and insurance terms. The judge granted partial summary judgment in James’ favor, effectively deciding the central question in the case before it goes to trial on October 2, 2023.
What are the allegations?
James filed the lawsuit in August 2020, after a two-year investigation into Trump’s business practices. She accused Trump, his three eldest children (Donald Jr., Ivanka and Eric), and the Trump Organization of violating New York’s Martin Act, a law that prohibits fraud and deception in securities and real estate transactions. She alleged that they inflated the value of their properties by hundreds of millions of dollars to secure loans, tax benefits and insurance coverage, while deflating them to reduce property taxes. Some of the properties involved in the lawsuit include Trump Tower, Trump International Hotel and Tower Chicago, Seven Springs Estate and Trump National Golf Club Los Angeles.
How did Trump respond?
Trump and his lawyers have denied any wrongdoing and have called the lawsuit politically motivated. They have argued that the valuations were based on reasonable estimates and projections, and that they complied with industry standards and regulations. They have also challenged the authority and jurisdiction of James and the court to pursue the case. They have filed several motions to dismiss the lawsuit or limit its scope, but none of them have been successful so far.
What are the implications?
The judge’s ruling is a significant blow to Trump’s defense strategy, as it establishes his liability for fraud as a matter of law. This means that James only needs to prove the amount of damages she is seeking at trial, which could be up to $250 million plus interest and penalties. The ruling also increases the pressure on Trump to settle the case or face a potentially damaging public trial, where he could be forced to testify under oath and disclose financial records that he has long sought to keep secret. The outcome of the case could also affect other legal challenges that Trump is facing from federal prosecutors, congressional committees and private plaintiffs.
