In the midst of a civil fraud trial, former President Donald Trump faces an uphill battle as the judge rules against him, fines him for violating a gag order, and declares him “not credible.” The trial, initiated by New York Attorney General Tish James, centers on allegations that Trump fraudulently inflated his net worth on financial documents for favorable treatment.
Key Developments in the Trial
The trial, now two months in, has seen Judge Arthur Engoron ruling in favor of James, stating that Trump committed fraud. The judge has imposed fines and deemed Trump “not credible.” The focus now shifts to other potential punishments, including a $250 million penalty sought by James. Engoron has also canceled all of Trump’s business certificates, a decision currently on hold pending an appeal.
Legal Defense Strategy Unveiled
Trump’s defense strategy, unfolding since mid-November, leans heavily on expert witnesses and attempts to validate the recorded estimates of property values. However, the defense seems equally focused on preparing for an appeal, repeatedly alleging bias on the part of the judge and seeking to appeal pretrial rulings. Last week, a New York appellate judge temporarily lifted gag orders on Trump and his lawyers.
Financial Implications and Potential Penalties
While the judge could order various defendants to pay various financial penalties, Trump, as the chief executive, may bear the brunt of any penalties imposed. With James seeking a $250 million penalty, the judge’s decision will significantly impact Trump’s businesses. The former president’s ability to pay such fines without selling assets remains uncertain, raising questions about the immediate financial impact.
Appeals Process and Timeline
Anticipating an unfavorable verdict, Trump is banking on the appeals process, which could extend for an estimated year or more. The former president’s legal team has consistently alleged bias, creating grounds for appeal. If Trump is ordered to pay immediately, an appeal bond may be required. The appeals process, however, allows for the delay of any immediate financial obligations.
Cancellation of Business Certificates: A Potential Blow
The cancellation of Trump’s business certificates, temporarily on hold, poses a significant threat to his real estate empire. Stripping a company of its business certificate is likened to issuing a death certificate, potentially affecting Trump Tower, 40 Wall Street, the Trump International Hotel, and other New York entities. If the appeals court upholds the cancellation, it could trigger a chain of events, including the disposal of assets and a hefty tax bill for Trump.
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