The ruling came in response to the lawsuit by New York Attorney General Letitia James — a case that is set to go to trial on Monday on the amount of damages owed.
James has alleged that Trump, three of his children, his companies and his business executives defrauded lenders, insurers and other entities. The state is seeking $250 million in damages, a ban on the Trumps from serving as officers of a business in New York and to stop the company from engaging in business transactions for five years.
Judge Arthur Engoron’s ruling is a complete rejection of Trump’s arguments that he didn’t inflate the values of his golf courses, hotels, homes at Mar-a-Lago and Seven Springs on financial statements.
Among other things, Trump is accused of inflating the value of his triplex apartment at Trump Tower by three times its size, resulting in an overvaluation of between $114 million to $207 million, Engoron wrote.
The judge canceled the business certifications of the Trump entities that are defendants in the case, including the Trump Organization — a major blow to the business that has been so synonymous with the former president’s personal brand.
A receiver will be put in place to “manage the dissolution” of the corporate entities. There are two New York properties that are part of the lawsuit, the commercial tower at 40 Wall Street and the Trump family compound at Seven Springs.
Questions remain as to how the receiver would dissolve the properties, if the ruling would impact properties located outside of New York state, including Mar-a-Lago, and if the Trumps could transfer the New York-based assets into a new company located out of state.