A New York judge ruled Donald Trump is liable for fraud for exaggerating his net worth by billions of dollars a year on financial records submitted to banks and insurers, a major victory for the state's attorney general before a high-stakes civil trial over remaining claims in the case.
The ruling Tuesday by Justice Arthur Engoron in Manhattan resolves the state's biggest claim against the former president and narrows a trial set to start as soon as Oct. 2. The bench trial will now focus on allegations including falsifying business records and issuing false financial statements, as well as the state's demand for $250 million in restitution.
New York Attorney General Letitia James sued Trump, his real estate company and his two adult sons in September 2022, accusing them of inflating the value of Trump's biggest assets from 2011 to 2021 to get better terms from banks and insurers. It's one of six cases against Trump — including four criminal prosecutions — that are heading to trial as he seeks to return to the White House in the 2024 election.
Trump, who claims James's lawsuit is politically motivated, is likely to appeal the ruling. He's also making a last-ditch effort to delay the trial by arguing to a New York appeals court that Engoron failed to narrow the case after an appellate panel ruled some the state's claims might be too old.
James, a Democrat, argued a trial on her fraud claim wasn't necessary because the evidence that Trump violated New York's Executive Law was overwhelming. The attorney general said in court filings that her team gathered proof that Trump inflated his net worth annually by as much as $3.6 billion by exaggerating the market value of properties including his Mar-a-Lago estate in Florida.
Trump argued against the state's motion for so-called summary judgment, saying the annual statements of financial condition that he gave to banks and insurers had "powerful disclaimers" saying they should do their own valuations. He has also argued that James didn't have a right to sue because the banks and insurers didn't suffer any financial losses.
The case is New York v. Trump, 452564/2022, New York State Supreme Court (Manhattan).
