Justice Arthur F. Engoron of the New York Supreme Court ruled yesterday that Donald Trump repeatedly inflating the value of his assets, thus constitution fraud on banks and insurers. Thus New York Attorney General Letitia James will no longer have to prove fraud in her lawsuit against Trump. She is seeking a penalty of $250 million in a trial scheduled to begin next week. Justice Engoron ruled that the annual financial statements submitted to banks and insurance companies by Trump agents “clearly contain fraudulent valuations that defendants used in business.”
He also fined Trump’s lawyers $7,500 each for persisting in making arguments that he had previously rejected, and warned them that the arguments in question bordered on being frivolous. The former president, the judge wrote, ignored reality when it suited his business goals. “In defendants’ world,” he wrote, “rent-regulated apartments are worth the same as unregulated apartments; restricted land is worth the same as unrestricted land; restrictions can evaporate into thin air.” Trump’s defense was that the banks made large profits in their dealings with the Trump Organization and could not be called victims, and that valuing property is subjective. This is the classic and often successful defense offered in many tax fraud cases.








