New York Judge Orders Cancellation of Business Certificates for Trump-Owned Firms
In a significant blow to the Trump Organization and former President Donald Trump, a New York judge has ordered the cancellation of business certificates for firms owned by Trump and others associated with the organization. The judge’s decision came as part of a pretrial ruling in a civil fraud trial, which alleges that Trump submitted “fraudulent valuations” for assets to obtain better loan and insurance terms.
Judge Arthur Engoron pointed out “false and misleading square footage” of Trump’s Fifth Avenue apartment and other faulty valuations as reasons for the ruling. This order could have far-reaching consequences for New York-based companies under the control of key Trump Organization figures, potentially affecting properties such as Trump Tower, Trump National Golf Club, and The Trump Building.
Eric Trump, who manages the day-to-day operations of the Trump Organization, expressed disappointment with the decision, stating that he had lost faith in the New York legal system. Trump’s attorney intends to immediately appeal the ruling and may seek an emergency stay of the trial.
However, it is important to note that the judge’s order only applies to New York-based entities and does not encompass the Trump Organization as a whole. Entities outside of New York could still continue to operate.
Within the next 10 days, the parties involved in the lawsuit must recommend potential receivers to manage the dissolution of the affected business entities. This could potentially lead to the closure of these entities and the sale of their assets. It remains uncertain which of Trump’s business entities are covered by the ruling, and further discussions will determine the consequences for the parent company, the Trump Organization.
Moreover, the upcoming trial will determine the potential financial penalty for Trump, which could amount to hundreds of millions of dollars. If found guilty, Trump may also face restrictions on acquiring real estate and applying for loans in New York.
The cancellation of business certificates for Trump-owned firms marks a significant development in the ongoing legal battles surrounding the former president and his organization. As the trial proceeds, the outcome will undoubtedly have a substantial impact on both Trump’s personal finances and the future of the Trump Organization.
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