A New York judge has found Donald Trump and his adult sons liable for fraud and canceled the Trump Organization’s business certification, saying the Trumps provided false financial statements for roughly a decade.

Judge Arthur Engoron’s ruling came days before the civil case involving the New York attorney general’s office and the former president was set to go to trial.

Engoron granted Attorney General Letitia James’ motion for summary judgment, finding Trump, his sons, and others “to be liable as a matter of law for persistent violations” of New York state law. He found the financial statements the Trumps provided to lenders and insurers for about a decade to be false and said they repeatedly engaged in fraud.

The decision is a blow to Trump and a complete rejection of his arguments that he didn’t inflate the values of his golf courses, hotels, and homes at Mar-a-Lago and Seven Springs on financial statements that were repeatedly used in business.

“Today, a judge ruled in our favor and found that Donald Trump and the Trump Organization engaged in years of financial fraud,” James said in a statement Tuesday night. “We look forward to presenting the rest of our case at trial.”

The attorney general has sought $250 million in damages, a ban on the Trumps from serving as officers of a business in New York, and to stop the company from engaging in business transactions for five years.

The judge canceled the business certifications of the Trump entities that are defendants in the case, including the Trump Organization, and said a receiver will be put in place to “manage the dissolution” of the corporate entities. There are two New York properties that are part of the lawsuit, the commercial tower at 40 Wall Street and the Trump family compound at Seven Springs.

However, the full breadth of his ruling remains unclear.

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.

Judge calls defendants’ arguments bogus

Among other things, Trump is accused of inflating the value of his triplex apartment at Trump Tower by three times its size, resulting in an overvaluation of between $114 million to $207 million, Engoron wrote.

“A discrepancy of this order of magnified, by a real estate developer sizing up his own living space of decades, can only be considered fraud,” Engoron wrote.

“Exacerbating defendants’ obstreperous conduct is their continued reliance on bogus arguments, in papers and oral argument,” Engoron wrote. “In defendants’ world: rent-regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air; a disclaimer by one party casting responsibility on another party exonerates the other party’s lies …”

The judge added: “That is a fantasy world, not the real world.”

The state supreme court judge likened Trump’s legal defense of his fraudulent financial statements to a Chico Marx line in the comedy “Duck Soup”: “Well, who ya gonna believe, me or your own eyes?”

Trump condemned the ruling in a statement, accusing Engoron of “doing the bidding” of James, as the former president campaigns to return to the White House.

“It is a great company that has been slandered and maligned by this politically motivated Witch Hunt. It is very unfair, and I call for help from the highest Courts in New York State, or the Federal System, to intercede. THIS IS NOT AMERICA!” Trump continued.

Trump’s attorney Christopher Kise called the ruling “completely disconnected from the facts and governing law.”

He added: “While the full impact of the decision remains unclear, what is clear is that President Trump and his family will seek all available appellate remedies to rectify this miscarriage of justice.”

In a statement on X, the platform formerly known as Twitter, Eric Trump said: “Today, I lost all faith in the New York legal system. Never before have I seen such hatred toward one person by a judge – a coordinated effort with the Attorney General to destroy a man’s life, company, and accomplishments. We have run an exceptional company – never missing a loan payment, making banks hundreds of millions of dollars, and developing some of the most iconic assets in the world. Yet today, the persecution of our family continues…”

James has alleged that Trump, three of his children, his companies, and his business executives defrauded lenders, insurers, and other entities. (An appeals court dismissed Trump’s eldest daughter, Ivanka, as a co-defendant from the case in June.)

In the lawsuit, James claims that Trump reaped a “substantial” financial benefit by putting forward faulty information in his financial statements, including $150 million in the form of favorable interest rates he obtained from the banks that the attorney general said his team misled.

In the order, the judge rejected Trump’s deposition testimony in which the former president said that the financial statements were not fraudulent because they contained disclaimers. Trump said the statements contained a “worthless clause” in them warning lenders and others that they shouldn’t be relied on.

Tuesday, the judge said that “the defendants’ reliance on these ‘worthless’ disclaimers is worthless.”

The trial start date is in limbo

The ruling means the attorney general’s office won on its first claim and will receive some amount of disgorgement to be determined at trial. The case will still proceed to trial but the attorney general’s office won’t need to prove the financial statements are false as they seek to hold him and his sons liable for insurance fraud and false business records.

Earlier this month, Trump filed a petition with the state appeals court to force Engoron to implement an appeals court decision in June that said certain claims may be moot because they fell outside of the statute of limitations. The appeals court left it up to Engoron to decide.

A judge on the appeals court paused the start of the trial, scheduled for Monday, to allow a larger panel of appellate judges to weigh in. A decision on that issue is expected to come this week.

BOTTOMLINE:  Trump is deservedly screwed.  He cannot do business in New York State.  New York in the Financial Center of the Universe.  So that’s a blow.  And he will have to pay the fines, which look to be in the $ 250 million range.  So that means, Mister Phoney Baloney Billionaire will have to file for Bankruptcy and have his assets sold to pay off the state.  His sons, depending on Daddy for their future, just got the rug ripped out from them.  His daughter, Ivanka, has quietly walked away from Daddy and finally hooked up with Saudi Billionaire Jared Kushner.  I await her new book “Mea Culpa, I Always Knew He Was a Bad Seed”.

1 COMMENT

  3. All them in 10 sq mile Washington DC will do whatever, they are lawless unto themselves!
    Washington DC (a corporation NOT a government) is just a MONEY RACKETEERING outfit and all of those propping up that place are FRAUDS. All of them are Vatican Crown minions fleecing the American Taxpayers for years & years… KICK THEM ALL OUT!!! (IMAGE) – THIS IS NO LONGER THE U.S. CAPITOL— IT’S THE NEW UKRAINIAN NATIONAL BANK

  4. One has to be truly foolish & full of hate to publish an article about a corrupt judge ruling (in lawless DC no less,) BEFORE THE TRIAL.

    Mr Punish, you are a disgrace to America. Perhaps you’ll soon go the way of those evil, corrupt Godless criminals you seem to idolize.

  5. How can a 50-years-in-business professional Real Estate Developer say his penthouse is 30,000 square feet when it’s actually 10,000 square feet?

    Let me rephrase, let’s say you live in a 1000 square foot trailer. Could you look me in the eye and, with a straight face, tell me that you live in a 3000 square foot trailer? No, of course not. BE HONEST OKIE! Even you, probably a non-pro real estate person knows the difference. So why the defense?

  6. Furthermore, defrauding banks is illegal and causes harm to financial markets. It may NOT be popular with the average Joe Blow worker to protect banks and their investors, but that’s the law. That’s what makes America a great place to invest; rule of law.

    Now, it is your right to love Trump policies. That’s fair. However, Trump is convicted fraudster. He defrauded with his Trump University. He is now liable for defrauding the banks. The fact that such high moral values are NOT part of your calculation is a personal choice. Integrity and Character are a NOT required values! In fact, in America, you are free to choice to people with very lowest of standards as your leaders.

    For me, I happen to believe that integrity and character matter. Thus, I cannot, in good faith, vote for Trump for US President. In fact, I would NOT vote for Trump as head of anything to do with leadership in anything! Period! He is a Con-Man and a Fraud. He proves it over and over again. And in, his rude and vulgar behavior and contempt for others and his willingness to terminate our 238 year old US Constitution along with implying that he would execute his own Chairman of the Joint Chief of Staff and shut down all political “enemies” no, no way. I don’t roll like that! Fascism is NOT my thing!

    In my view, America has made a huge mistake in lowering its’ standards across the board. Did you see Schumer approve Fetterman to wear a hoodie and shorts in the Senate? Come on! Do we really want our leaders to dress like they are going to Wal-Mart?

    How about Democrat Senator Menendez taking bribes in gold bars? Is that okay with you?

    In regards, to political standards, America needs an awakening. It must raise its standards everywhere; Reform Congress, Laws and expect more from our families, schools and workplace. And expect much more from system of government that aims to be for WE THE PEOPLE. And definitely choose leaders that cheer-lead raising our standards.

    To me, integrity and character are cornerstones to such reform. I encourage you to consider them as well. Sadly, Trump simply does NOT meet those standards. But the good news is, in a country of 330,000,000 people, we can find plenty of leaders who fit the bill. Consider it!

  7. Finally, you say I am a “disgrace to America”. Hum?

    So the definition of “Disgrace” is the following; “the loss of respect, honor, or esteem; ignominy; shame”.

    Yet, I have NEVER defrauded a student and stole his money for a fake university. I have never inflated my assets to fraudulently get a loan. I have never raped a women or even grabbed her by the pussy without consent. And I have never murdered anyone or called for the murder of anyone I disagree with. And I am certainly NOT a Sore Loser! Hum?

    So when you say I am a “disgrace” what exactly are you referring to? And, based on the definition of disgrace, how exactly do you NOT refer to Donald Trump as a ‘disgrace to America”? What exactly do you value?

  8. You do not research much, your hate must blind you. I believe & value:
    God
    Christ
    Family
    America
    Honesty
    The Rule of Law

    What this judge ruled was a complete sham. Mar A Lago’s TENNIS COURTS are valued at a higher price than what this judge ruled. Go look at real estate around Mar A Lago to see for yourself. You know, real research not based in hate.

    Just “HAPPENED” to be on the same day another Biden bombshell dropped.

    My values are what President Trump speaks about all the time. Not to mention $1.87 / gallon of gas, peace in the Middle East, NO WARS, NO MANDATES, affordable building costs, free & open supply chains while he was in office.

    Don’t look now, the side you are rooting for is VERY EVIL. Centuries old evil. Research Ukraine. Research the REAL TRUTH. Things like the Obama / Biden orchestrated Coup de Tát in Ukraine in 2014.

    You are in for a very rude awakening.

  9. We mostly agree on POLICY issues. Unfortunately, we don’t agree on VALUES.

    Oh, I see you you completely ignored the facts presented and conveniently won’t answer the simple question I asked you “Would you be able to tell the difference between a 1000 square foot trailer and a 3000 square foot trailer or not”?

    Why? And what does this tell others reading this?

    Well, to me it says, DONALD TRUMP was 100% correct when he said he could MURDER someone in broad daylight and his supporters would still vote for him. That’s You!

    By definition, that means you are in his CULT!
    So be 100% honest! There is NOTHING he can do to stop you from loving him. Am I right?

  10. Finally, this article is about Trump. I never said what “side” I am on. You said that! Why do you assume? It’s weak sauce and it takes away from the real intelligent civil discourse on Trump.

    Trump committed fraud and you don’t care! Period! And that’s your right! But the fact that you can’t condemn his fraud and also claim you have high moral values of law and order and PATRIOTISM is TOTAL BULL SHIT! It don’t work that way! I know it, You Know It and even Trump Knows it! You are far better off just stating the truth that YOU LOVE TRUMP NO MATTER WHAT and put him before the country. And you don’t care or give a shit whether he grabs everyone by the pussy or not! Period! Be Honest!

  12. [“It all FRAUD-SHOWTIME-BUSINESSES…ENTERTAINMENT at its best…WHEN will ACTOR BIDEN and his SON join the private commercial SHIP, called COURT??? When you read old HARVARD and YALE LAW BOOKS 19th.Century and studying TRUST-LAW-ROMAN-CANON LAW, than you learn very quick, that’s all FRAUD against us all…and do you really believe, that a 33\u00b0Scottish Rite, ACTOR D.TRUMP, his real name is DRUMPF, related with the Zionists ROTSCHILDS, does not know how the private commercial LAW-BUSINESSES, represented by the private commercial BAR-ASSOCITATION, all MASONSBROTHERS, is working and made this PERSON so rich and powerful??? So, a PERSON, THING, with and without a etiquette TITEL, can not be charged but BONDS-TRADE was ongoing..something is wrong..meet your STRAWMAN….telling you that Dorothee and Toto are right, that both, the TIN-MAN&STRAWMAN do not have a brain, heart and soul and that everything with both, is private commercial Businesses, on our COSTS and live\u2026qui bono? Errare humanum esse\u2026.”]