According to The Wall Street Journal, Donald Trump’s legal team has sought clarity from New York State Supreme Court Justice Arthur Engoron regarding a ruling that could potentially strip the former president of control over part of his real estate empire.
Justice Engoron recently ruled in a civil case brought by New York State Attorney General Letitia James, stating that Trump and his company had committed fraud by falsely valuing his properties. This ruling could significantly impact the Trump family’s business entities, potentially affecting hundreds of entities, including real estate assets like Trump Tower. The judge has ordered the cancellation of legal certificates that permitted these entities to conduct business in New York and instructed both parties to identify a receiver to oversee their dissolution.
This decision could also affect trial proceedings set to begin on Monday, where further allegations of fraud will be addressed. Trump’s lawyers have sought clarification on the ruling’s impact, including whether affected properties will be sold or managed by the receiver. James’ lawsuit alleges that Trump inflated his net worth by falsely valuing his properties, potentially impacting his ability to obtain favorable bank loans. In addition to canceling business certificates, James has sought $250 million in penalties. Trump has accused James of pursuing him for political reasons, arguing that asset valuations are subjective and that no one suffered financial harm.
Canceling business certificates is a drastic remedy, typically reserved for cases involving illegal enterprises or fraudulent schemes. The ruling effectively bars Trump from transacting business in New York, potentially affecting his financial interests within the state, though the fate of his out-of-state assets connected to New York-based corporate entities remains unclear. Despite its potential financial impact, Trump’s business focus has shifted away from New York over the last two decades, emphasizing deals in other states and countries.
Many New York buildings bearing the Trump name have been renamed due to his policies and persona’s unpopularity among New York voters. The Trump Organization’s last significant deal in New York City was a hotel and condominium development in Soho, which underwent a name change in 2017 amid controversy.