Former U.S. President Donald Trump and his family business are bracing for a significant legal battle as they stand trial in a civil fraud case set to begin in New York.
The case, brought by Democratic New York Attorney General Letitia James, alleges that Trump artificially inflated the value of his assets to secure favorable loan and insurance terms.
Trump, who is currently the leading contender for the 2024 Republican presidential nomination, intends to attend the trial’s opening week, according to court filings unrelated to the case.
The trial follows a recent ruling by the presiding judge, Justice Arthur Engoron, which found Trump liable for fraud.
The upcoming proceedings will primarily focus on the penalties Trump and his family business must face.
James is seeking significant penalties, including fines of at least $250 million, a permanent ban on Trump and his sons, Donald Jr. and Eric, from operating businesses in New York, and a five-year restriction on Trump’s commercial real estate activities and his flagship company, the Trump Organization.
Trump has consistently framed this case as a political witchhunt, but Justice Engoron’s recent ruling validated James’s fraud allegations.
Engoron criticized the defendants for fabricating valuations, including Trump inflating the size and worth of his apartment in Trump Tower to a grossly exaggerated degree.
The judge’s decision also revoked business certificates for companies controlling key components of Trump’s business empire, such as Trump Tower and his New York golf clubs.
Receivers will be appointed to oversee their dissolution, though the specifics of implementation remain to be determined.
While this ruling applies to only a fraction of Trump’s extensive portfolio, it encompasses some of his most valuable properties.
Any additional fines and business restrictions could further harm Trump’s financial standing.
The trial is scheduled to run until early December and will involve over 150 potential witnesses, with much of the proceedings likely revolving around expert testimonies regarding financial documents.
James’s allegations assert that Trump benefited from hundreds of millions of dollars in undeserved advantages by grossly exaggerating asset values to secure better deals with lenders and insurers.
For example, Trump purportedly valued his Mar-a-Lago club and residence in Florida at up to $739 million, despite deed restrictions limiting it to $28 million.
This case adds to Trump’s legal troubles as he seeks to regain the White House in the 2024 election.
Although these legal challenges have imposed a financial burden, they have not significantly eroded his lead over Republican primary rivals.
Trump, the first sitting or former U.S. president to face criminal charges, currently faces indictments in four separate cases.
These cases span Florida, Washington D.C., Georgia, and New York and involve various allegations, including mishandling classified documents, contesting the 2020 election results, and hush money payments to a porn star.
Trump maintains his innocence and has pleaded not guilty to all charges.
