In a significant ruling, Judge Arthur Engoron determined Tuesday that Donald Trump and his real estate company had deceived financial institutions, insurers and other entities by drastically inflating asset values and misrepresenting his net worth in official documents meant for deal-making and obtaining financing.
The ruling emerged from a civil lawsuit spearheaded by New York Attorney General Letitia James. Engoron's decision will result in the revocation of several of Trump’s business licenses, complicating the Trump Organization’s ability to operate in New York. Moreover, the company will be under the watchful eye of an independent monitor moving forward.
Trump has yet to provide a statement on the latest developments. However, the former president has maintained a stance of innocence, asserting, "You don’t have a case and you should drop this case."
Judge Engoron's 35-page ruling provided insights into the depth of the misrepresentations. He 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." Engoron termed this a "fantasy world."
Significant allegations include Trump's claim that his Trump Tower apartment in Manhattan was valued at a staggering $327 million and Mar-a-Lago was valued at an unrealistic $739 million.
Attorney General James pointed out the discrepancies and later actions that showed such valuations to be false.
Engoron's decision is part of a larger process, with the next non-jury trial set for Oct. 2. That trial, possibly lasting until December, will explore remaining claims and the consequential penalties.
Attorney General James is pushing for $250 million in penalties and seeks to ban Trump from conducting business in New York.
Although many clients may "tweak" valuations, it is worthwhile letting them know that in at least this case, the authorities are willing to issue substantial fines. The outcome may reshape how asset valuations are approached, scrutinized, and authenticated, impacting not just Trump's business dealings but potentially setting a precedent in the wider industry.
This case is one of several legal challenges Trump is currently facing, with implications ranging from potential penalties, business operation restrictions, to further stains on his legacy in the real estate sector.
Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.
Two C-level leaders reveal the new time-saving tools they've implemented and what advisors are doing with their newly freed-up hours.
The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.
Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.
The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
