Lawyers for former President Donald Trump will head to Manhattan on Thursday as they seek to undo a civil fraud judgment that could significantly affect the former president’s real estate empire and cost him close to $500 million.
In a courtroom just blocks away from the Flatiron Building, an intermediate-level state appeals court will hear arguments Thursday at noon. Trump has given no indication that he plans to attend.
The case centers on accusations that Trump inflated his net worth by billions of dollars to secure loans and make deals for the betterment of the Trump Organization. The state’s Democratic attorney general accused Trump and his associates of overvaluing assets, including his golf courses, hotels, and Trump Tower penthouse. Trump’s legal team is seeking to overturn Judge Arthur Engoron’s judgment, calling it “egregious” and arguing it should be reversed.
Amid Trump’s four criminal cases, which carry the risk of years in prison, the former president also faces penalties in civil defamation cases brought by former Elle columnist E. Jean Carroll after he lost two separate civil trials, resulting in him currently owing a total of more than $563 million in combined penalties with interest. For example, Trump owes $24 million more today than when the judgment first came down due to the interest accrued already at a 9% interest rate.
Even if Trump wins the election, legal experts say his return to the White House could be marred by a split screen of authorities collecting his assets should he lose his bid to undo Engoron’s ruling or lower the total amount.
New York Attorney General Letitia James, a Democrat whose office initiated the lawsuit, contends that Engoron’s ruling is backed by “overwhelming evidence.”
Engoron’s decision followed a nearly three-month trial with testimony from 40 witnesses, including Trump himself. The judge ruled that Trump, his company, and executives, including the former president’s sons, Eric Trump and Donald Trump Jr., were liable for falsifying records and defrauding insurers.
The former president’s lawyers argue that the penalties are unjust and that the statute of limitations should apply to some claims. They have also accused Engoron of bias, while the former president has called the ruling “election interference” and “weaponization against a political opponent.” His lawyers also note that there were no victims of the alleged overvaluation scheme and that banks continued to solicit business with the former president during the time in question.
The state maintains that the former president engaged in large-scale fraud, inflating his net worth by as much as $2.2 billion a year. Donald Trump has posted a $175 million bond to prevent asset seizures while the case is under appeal. If the judgment is upheld, the former president and his co-defendants will owe the state the entire sum, with interest accruing daily.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Oral arguments can be heard from the appeals court’s YouTube channel, and a decision could come before Election Day.
Should the former president lose at this stage, he has one more shot to appeal to the New York Court of Appeals, the highest court in the Empire State.
