A U.S. judge has ruled that former President Donald Trump committed fraud over several years while building his real estate empire. The ruling comes in a civil lawsuit brought by New York Attorney General Letitia James. The judge found that Trump and his company deceived banks, insurers, and others by significantly overvaluing his assets and exaggerating his net worth on paperwork used in deals and loans. As a result, the judge ordered some of Trump’s business licenses to be rescinded, making it difficult for them to do business in New York. Trump’s lawyer stated they would appeal the decision.
The ruling represents a significant legal setback for Trump and is seen as a repudiation of his image as a wealthy real estate mogul. The judge found that Trump’s company and key executives repeatedly lied about their finances on annual financial statements, leading to favorable loan terms and lower insurance costs. The ruling comes as Trump faces multiple legal challenges, including criminal investigations in Georgia and Washington, D.C., related to his efforts to overturn the 2020 election results, as well as other civil lawsuits and indictments.
While this ruling resolves a key claim in James’ lawsuit, other claims and a trial on penalties remain pending. The judge will decide on these claims and the requested $250 million in penalties at a trial starting on October 2.
Trump and his company have consistently denied any wrongdoing and have vowed to fight the legal actions against them.