Donald Trump is bracing for a crucial decision this week in a civil fraud lawsuit that could cost him a massive $370 million and possibly spell the end for his real estate empire.
Decade-Long Fraud
New York Judge Arthur Engoron had previously determined in September that Trump engaged in fraud over a decade to inflate the value of his real estate for lender and insurer benefits, a decision that now threatens his business operations.
Property Valuation Scandal
Judge Arthur Engoron’s findings in the Trump case are quite startling. He determined that Trump inflated the value of his Mar-a-Lago resort by a factor of 20 compared to its tax assessment. Additionally, Trump allegedly boosted the value of his Trump Park Avenue apartments by millions, despite rent restrictions impacting their profitability.
A Trial of Size
Most notably, Trump is accused of nearly tripling the size of his Trump Tower penthouse in official documents. The judge conducted a trial last fall to assess the damages, with the final arguments presented on January 11. Engoron aims to deliver his verdict by the end of the month.
Business ‘Death Penalty’
Columbia University law professor Eric Talley described the potential outcome as a “death penalty for a business,” raising questions about whether this is a fair consequence of fraud or a result of Trump’s unpopularity.
No Harm, No Foul?
Trump and his legal team counter by claiming that no real harm was done, as all lenders were fully repaid and were “happy” with their dealings with him.
Trump’s $83.3M Burden
Despite the rarity of such a business “death penalty,” Trump has already signaled his intention to appeal. This legal challenge follows closely behind a federal defamation case verdict last Friday, where Trump was ordered to compensate columnist E. Jean Carroll to the tune of $83.3 million.
Campaigning in the Courtroom
Amidst these civil case blows, the leading Republican presidential candidate is also facing an overwhelming four criminal trials while he campaigns for a return to the Oval Office. Trump has consistently argued that these legal battles are a tactic by Democrats to thwart his political ambitions.
150 Fraud Cases
The “repeated fraud” law in New York, established in 1956, has seen about 150 cases where the decisive factors often involved victims and substantial losses, as per an Associated Press study.
A $370M Lawsuit
The fraud charges against Donald Trump pose the greatest financial risk to his real estate empire, with New York Attorney General Letitia James seeking $370 million in penalties.
‘A crazy trial’
James has requested Judge Engoron to bar Trump from business activities in New York, but not to dissolve his company. The trial saw Trump repeatedly criticizing Judge Engoron and Attorney General James, resulting in a $15,000 penalty for breaching gag orders.
Fraud Case Denial
In a flurry of social media posts on Sunday, Donald Trump vehemently denied any wrongdoing in the ongoing fraud case, insisting that since all lenders, including Deutsche Bank, were fully repaid with interest, there were no victims in the case.
Political Bias at Play?
“Everyone paid, No Victims (except me!), only SUCCESS,” Trump asserted. “This Case should have been dismissed long ago. It is a Political Persecution. The State should get No Damages whatsoever!”
‘HOAX’ and ‘RIGGED’
Trump continues to depict judges and prosecutors as Democrats conspiring to block his political comeback, even calling the trial a “HOAX” and “RIGGED” in his posts.
Business Shutdowns and Fines
The Associated Press’ examination of the fraud statute revealed that while a dozen businesses have been shut down for repeated fraud, including a breast cancer nonprofit and a private equity firm, most companies sued under this law have been allowed to continue operations, albeit with some facing fines or operational changes.
A Narrow 2024 Lead
Trump’s legal woes don’t seem to affect his popularity in polls.
The latest Emerson College Poll shows President Biden’s approval rating at 42%, a slight increase since December, while his disapproval rating has dropped to 46%. Notably, Biden’s approval among independent voters has risen from 33% to 37%, with disapproval falling from 52% to 45%.
A Neck-and-Neck Race
In a 2024 election scenario, Trump narrowly leads Biden 46% to 45%, and in a matchup against Haley, they are nearly tied at 38% for Haley and 37% for Biden, with 25% undecided.
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