Judge's apparent dissolution of some Trump companies in civil fraud trial may not stick, experts say
“Things are now likely to get a lot worse for” former President Donald Trump, as Judge Arthur Engoron is “poised to impose a sweeping array of punishments,” the New York Times reports. Photo by Seth Wenig/The Associated Press.
A New York judge overseeing former President Donald Trump’s civil fraud trial is expected to issue a decision as early as next month on any additional punishment following closing arguments in the case.
Judge Arthur Engoron has already granted partial summary judgment to Democratic New York Attorney General Letitia James, ruling in September that Trump inflated the value of his assets in statements provided to lenders and insurers.
“Things are now likely to get a lot worse for Mr. Trump,” as Engoron is “poised to impose a sweeping array of punishments,” the New York Times reports.
Engoron could impose a financial penalty; James has sought $250 million, but she has indicated that she may ask for more. He could ban Trump and his companies from engaging in commercial real estate deals for five years. And he could ban the companies from seeking loans from state-chartered banks over the same period.
“Most notably,” the New York Times said, Engoron could permanently ban Trump from running a company in New York, “a move that would essentially erase the former president from much of his company’s operations.”
Engoron already imposed an initial round of punishment when he ruled in September.
One punishment is the revocation of business certificates that allow properties to use assumed names, rather than their legal names. The revocation would force about 10 businesses to get new certificates, “a relatively minor headache,” the New York Times concluded.
Engoron also ordered the appointment of receivers “to manage the dissolution of the canceled” limited liability companies.
“In other words,” according to the New York Times, “the judge seemed to be terminating not only the certificates, which can be replaced, but also the actual Trump companies that own or manage his golf resorts, hotel and other assets. For those companies, it appeared to be lights out.”
The dissolution of the New York limited liability companies “is less likely to stick” than the cancellation of business certificates, experts told the New York Times.
Experts said Engoron may be going further than the law allows. They also said he may have erred by imposing the punishment on the 10 or so New York companies with the special business certificates, rather than the smaller number accused of wrongdoing.
A New York appeals court put the dissolution order on hold Oct. 6 to allow it to consider an appeal, according to the New York Times and prior coverage by Reuters.
Trump lawyer Christopher Kise told Reuters in a statement that he was pleased that the appeals court has suspended Engoron’s “attempt to reach issues, entities and assets beyond the scope of this case.”
See also:
“New York appeals court refuses to act in Trump’s challenge to gag orders in civil fraud trial”
“Gag order is reinstated in Trump’s civil case amid death threats towards judge and his staff”
“Judge extends gag order to lawyers in one Trump case while appeals court issues stay in another”
“Trump Organization found guilty of tax fraud; maximum penalty is no more than ‘a rounding error’”
