Former US President Trump is said to have cheated when reporting the value of his company and his private possessions. But it wasn’t just about showing off, it was about tangible financial benefits.
According to a New York judge, former US President Donald Trump manipulated the goodwill of his Trump Organization for years and thereby committed fraud.
The ex-president, his sons and senior employees systematically overstated the value of the company in annual reports in order to obtain loans and insurance contracts on more favorable terms, according to a preliminary decision by Judge Arthur Engoron on Tuesday.
For example, Trump stated the size of his apartment in Trump Tower as around 2,800 square meters for years, even though it was only a good 1,000 square meters. As a result, the property was overvalued by up to $200 million. The value of his Mar-a-Lago estate in Florida is said to have been inflated by 2,300 percent in financial documents.
Trump’s son speaks out
Among other things, the judge ordered that Trump and his sons’ business licenses be revoked. This could make it more difficult for the family to continue doing real estate business in New York in the future.
“Today I have lost all faith in the New York legal system. Never have I seen such hatred by a judge for an individual – an action coordinated with the Attorney General to destroy one man’s life, business and achievements,” wrote Trump’s son Eric on X, formerly Twitter. “We have run an extraordinary business, never missing a loan payment, bringing hundreds of millions of dollars to the banks and developing some of the most famous real estate in the world. But the persecution of our family continues.”
The civil trial against Trump brought by New York Attorney General Letitia James is scheduled to begin next Monday. She wants to ensure that Trump has to pay $250 million in restitution and is no longer allowed to do business in New York. A final verdict is expected in December. “Today a judge ruled in our favor, finding that Donald Trump and the Trump Organization have engaged in financial fraud for years,” James wrote on X on Tuesday. “We look forward to presenting the rest of our case in court.”
Numerous conflicts with the US justice system
Trump has been fighting numerous conflicts with the US judiciary for decades. Even as a construction mogul, he was entangled in legal disputes. Even during his presidency from 2017 to 2021, he was repeatedly targeted by the judiciary. Since the end of his presidency, Trump has struggled on several fronts with legal problems or investigations that could have legal consequences for the 77-year-old. Trump wants to run again in next year’s presidential election.
Experts believe it is unlikely that one of the proceedings, which often last several years with opportunities for appeals and renegotiations, would lead to a conviction before the election in November 2024. The civil lawsuit for fraud could at least harm Trump politically: after all, he always scores points with his voters by portraying himself as a successful entrepreneur. If this narrative now turns out to be a lie, his shine could fade, at least in some groups of voters.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
