The Trump Organization’s business certification was revoked by a New York judge, Arthur Engoron, who made the decision. He claimed that the Trumps had submitted false financial statements for about ten years.
Days before the civil trial was scheduled to begin, Engoron made his decision in the case involving the former president and the office of the New York attorney general.
The judge granted Attorney General Letitia James’ motion for summary judgment, finding Trump, his sons, and others “to be liable as a matter of law for persistent violations” of New York state law.
CNN reports that the financial statements the Trumps provided to lenders and insurers for about a decade were false and said they repeatedly engaged in fraud.
The decision is a blow to Trump and a complete rejection of his arguments that he didn’t inflate the values of his golf courses, hotels, and homes at Mar-a-Lago and Seven Springs on financial statements that were repeatedly used in business.
“Today, a judge ruled in our favour and found that Donald Trump and the Trump Organization engaged in years of financial fraud,” James said in a statement Tuesday night. “We look forward to presenting the rest of our case at trial.”
The attorney general has sought $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.
Engoron cancelled the business certifications of the Trump entities that are defendants in the case, including the Trump Organization.
In order to “manage the dissolution” of the corporate entities, he claimed that a receiver will be appointed. Two New York properties are involved in the legal dispute: the Trump family estate at Seven Springs and the office block at 40 Wall Street.
The exact scope of his decision is still up for debate.
If the decision applies to properties outside of New York state, such as Mar-a-Lago, there are still unanswered questions about how the receiver would dissolve the properties and if the Trumps may transfer the New York-based assets into a new corporation established elsewhere.