In a case that is being closely watched by the financial sector, the civil fraud trial against former President Donald Trump regarding allegations of exaggerated property valuations could commence as early as Monday. An appeal by Trump to postpone the trial was dismissed by a New York appeals court earlier Thursday.
This development follows Justice Arthur F. Engoron's ruling earlier in the week that delivered a significant setback to Trump. Engoron found Trump responsible for "persistently overvaluing his assets," which could have implications on the business operations of the former president in New York.
New York Attorney General Letitia James, who instigated the legal action against Trump, claims the property valuation inflation was leveraged to secure favorable bank loan terms.
Although Trump's legal avenues are narrowing, there remains the potential to appeal Engoron's initial decision. The overarching issue yet to be resolved in the trial includes the determination of possible sanctions against Trump and his company, with James eyeing the recovery of an estimated $250 million.
During the legal proceedings, Trump's attorneys pointed to a prior appeals court decision from June, suggesting that some allegations against the ex-president might be time-barred. However, Thursday's ruling seemed indifferent to this argument.
Christopher M. Kise, Trump's lawyer, expressed strong dissatisfaction with the judgment, labeling it "outrageous" and accusing Engoron of overlooking "basic legal, accounting, and business principles."
Trump has vehemently refuted all the allegations. He has also suggested that political bias might be at play, referencing both the judge and the attorney general's political affiliations. Furthermore, he labeled Engoron as “deranged” and characterized James as a racist.
Central to James's lawsuit is the contention that Trump's yearly financial disclosures overstated his net worth, sometimes to the tune of $2.2 billion. These statements, according to her, were presented to banks to acquire loans on better terms. Kise argued against this, noting that the banks benefited from these loans and that Trump maintained a flawless payment record.
Nevertheless, the attorney general's team has argued that demonstrating financial damage resulting from the alleged fraud wasn't obligatory.
Engoron is also losing patience with Trump’s legal team — he levied a $7,500 fine on each of Trump's lawyers for reiterating previously stated arguments.
The outcome of this trial could dictate the trajectory of Trump's business activities in New York, with nearly a dozen of his properties possibly affected by the outcome of this trial.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
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.
