What Trump's New York fraud conviction means for his business empire
A New York judge has ordered many of Trump's companies to be placed into receivership and dissolved, but questions remain
New York Supreme Court Justice Arthur Engoron ruled Tuesday that former President Donald Trump, his two adult sons and two other Trump Organization executives committed repeated and persistent fraud by grossly inflating the value of Trump properties, allowing them to obtain dishonestly favorable terms on loans and insurance.
Engoron ordered that many of Trump's New York business licenses be revoked and the companies that own or control of some of his signature properties be placed in receivership and dissolved. If the ruling, in a civil lawsuit brought by New York Attorney General Letitia James, isn't overturned on appeal, The New York Times reported, it could shut down several Trump business entities in New York, "effectively crushing the company."
The summary judgment means that in an upcoming trial, James won't have to prove that Trump is liable for fraud. Among the "fantasy world" valuations Engoron flagged was Trump's 2,300% markup of Mar-a-Lago.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
With the fraud verdict settled, most of the non-jury trial will concern the damages Trump and his co-defendants will have to pay. James is asking for at least $250 million in penalties and a lifetime ban on the Trumps serving as officers or directors in any New York company.
Tuesday's ruling is "essentially the equivalent of the corporate death penalty for the Trump Organization in New York state," conservative anti-Trump lawyer George Conway told CNN. "No matter what he finds in the damages phase of this trial, the Trump Organization is out of business."
Trump's lawyers, whom Endgoron fined $7,500 apiece for repeating "frivolous" arguments the judge had already rejected, slammed the ruling and vowed to appeal.
Engoron's order specifically affects two properties: 40 Wall Street in lower Manhattan and the Seven Springs estate north of the city. Under receivership, The Associated Press explained, "Trump would lose his authority over whom to hire or fire, whom to rent office space to, and other key decisions."
"However, the full breadth of his ruling remains unclear," CNN added. "Questions remain as to how the receiver would dissolve the properties, if the ruling would impact properties located outside of New York state, including Mar-a-Lago, and if the Trumps could transfer the New York-based assets into a new company located out of state."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Today's political cartoons - November 10, 2024
Cartoons Sunday's cartoons - civic duty, uncertain waters, and more
By The Week US Published
-
5 ladylike cartoons about women's role in the election
Cartoons Artists take on the political gender gap, Lady Liberty, and more
By The Week US Published
-
The right to die: what can we learn from other countries?
The Explainer A look at the world's assisted dying laws as MPs debate Kim Leadbeater's proposed bill
By The Week Published
-
Why are America's restaurant chains going bankrupt?
Today's Big Question Red Lobster was the first. TGI Fridays might be next.
By Joel Mathis, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Why do Russian oil bosses keep dying?
Under the Radar There have been 'at least 50' mysterious deaths of energy company executives since Putin ordered Ukraine invasion
By Harriet Marsden, The Week UK Published
-
The pros and cons of globalization
Pros and Cons Globalization can promote economic prosperity but also be exploitative
By Justin Klawans, The Week US Published
-
The pros and cons of labor unions
Pros and Cons Joining a labor union can have positives — and negatives
By Justin Klawans, The Week US Published
-
Boar's Head plant closure leaves another small town looking for answers
The Explainer The Jarratt, Virginia, Boar's Head plant has been shuttered indefinitely after a listeria outbreak
By Justin Klawans, The Week US Published
-
Canadian takeover bid for Japan's 7-Eleven could change how the Asian country does business
In the Spotlight Would a foreign company upend konbini culture?
By Joel Mathis, The Week US Published
-
Why are older workers staying on the job?
Today's Big Question And what does it mean for younger workers?
By Joel Mathis, The Week US Published