By Shaim Akhtar
Staff Writer
The Supreme Court of New York has found former Republican President Donald Trump liable for fraud by deceiving banks and insurers by overvaluing assets used in business and loan deals. After being found liable, the court has set a civil trial in New York that will determine major financial and legal penalties in the coming months. The court’s actions mark a significant chapter in United States history, as Trump is the first president ever to be found liable in a civil case.
In 2022, New York Attorney General Letitia James filed a civil case against Trump, accusing him, Eric Trump, Ivanka Trump, Donald Trump Jr. and the Trump Organization of a decade-long pattern of misrepresenting asset values and Trump's net worth with the alleged purpose to receive favorable loan terms and lower insurance costs, as reported by Reuters.
One specific instance involved the misrepresentation of the value of the three-story Trump Tower penthouse located in Manhattan, which was deceivingly valued at $327 million, a figure over three times the actual size and worth of the property.
Fast forward to today, Trump's court orders carry significant legal consequences: multiple business licenses are to be rescinded, the authority on strategic and financial decisions over key New York properties are to be denied, five defense lawyers are to be fined $7,500 and Trump potentially may be fined $250 million for countless charges.
According to the AP, Trump has faced multiple indictments over the past year in connection with the 2020 presidential elections, the Capitol insurrection and the alleged acquisition of classified government documents. Furthermore, the Trump Organization was found guilty of tax fraud last year, with executives failing to pay taxes on apartments and cars, resulting in the company being fined $1.6 million and the finance chief being sentenced to jail.
Trump and his attorneys responded in a statement to being found liable for fraud.
Regarding the case, Trump stated, “My civil rights have been violated, and some Appellate Court, whether federal or state, must reverse this horrible, un-American decision.” He also called the court’s actions “a very sad Day for the New York State System of Justice.”
Moreover, Trump's attorney, Christopher Kise, believes that the actions of the court are “completely disconnected from the facts and governing law.”
In response to the court’s ruling, Trump has filed a motion to an appeals court in order to delay the case, aiming to potentially mitigate some of the financial consequences he may face if the trial proceeds.
If the trial proceeds as scheduled, Trump potentially faces hefty fines that could amount to $250 million and consequential rulings on properties owned in New York, leading to significant financial and ownership concerns.
The significant developments within the trial raise considerable financial and ownership concerns for the former president, underscoring the profound impact of the legal battle behind business ethics utilized in key loan and insurance deals. Yet, Trump being found liable for fraud serves as a precedent that even former presidents are not barred from legal challenges after their time in office.
