The Lawsuit by the New York AG
The New York Supreme Court case was filed by the Office of the New York State Attorney General Letitia James on September 21, 2022 (2022_452564), against the Trumps and their several business entities. The suit alleged that that Trump et al., properties were intentionally overvalued for almost a decade, 2011 to 2021, by as much as $2.2 billion. The AG requested at least $250 million in damages and cancellation of their business licenses.
Summary Judgment on September 26, 2023
The Hon. Arthur F. Engoron has presided over the case for months as it slowly but methodically plodded its way through New York County Supreme court procedure to trial. After discovery was completed and on motion for Summary Judgment by the AG before trial, Judge Engeron found on September 26, 2023, that as a matter of law Donald J. Trump et al., had persistently committed FRAUD by falsely inflating or deflating property values as they saw fit. Thus, Donald J. Trump was officially found to have committed FRAUD in these valuations, and their business licenses were subject to future forfeit.
Liability and Injunctive Relief
Accordingly, OAG has established liability on its first cause of action pursuant to Executive Law§ 63(12) as against all defendants, and is entitled to injunctive relief against:
- Donald J. Trump;
- Donald Trump, Jr.;
- Eric Trump;
- Allen Weisselberg;
- Jeffrey Mcc onney;
- the DJT Revocable Trust;
- the Trump Organization Inc;
- the Trump Organization LLC;
- DJT Holdings LLC;
- DJT Holdings Managing Member LLC;
- Trump Endeavor 12 LLC;
- 401 North Wabash Venture LLC;
- Trump Old Post Office LLC;
- 40 Wall Street LLC;
- and Seven Springs LLC.
In the Conclusion of the Order on page 35, Judge Engoron stated:
” … ORDERED that plaintiff s motion for partial summary judgment on its first cause of action is granted in part, to the extent of finding defendants Donald J. Trump, Donald Trump, Jr., Eric Trump, Allen Weisselberg, Jeffrey McConney, the DJT Revocable Trust, the Trump Organization Inc, the Trump Organization LLC, DJT Holdings LLC, DJT Holdings Managing Member LLC, Trump Endeavor 12 LLC, 401 North Wabash Venture LLC, Trump Old Post Office LLC, 40 Wall Street LLC, and Seven Springs LLC to be liable as a matter of law for persistent violations of Executive Law§ 63(12); and it is further
ORDERED that any certificates filed under and by virtue of GBL § 130 by any of the entity defendants or by any other entity controlled or beneficially owned by Donald J. Trump, Donald Trump, Jr., Eric Trump, Allen Weisselberg, and Jeffrey McConney are canceled; … ”
The Trial for Damages started October 2, 2023
Next, now that the Judge had found that Trump et al., committed pervasive fraud in their property valuations, the only unresolved matter left for the Judge to determine are the penalties, i.e., the amount of damages and any other relief requested by the AG.
The trial started on October 2 and concluded December 13, 2023. At this conclusion the trial ended and was submitted to Judge Engoron for a decision, this there was no jury requested by the Trump lawyers at the appropriate time at the pleading stage.
However, due to the length and complexity of the trial, a final written decision by Judge Engoron is not expected until the end of January, 2024.
Motion to Dismiss DENIED, again
On December 18, 2024, Judge Engoron addressed yet another attempt by Trump’s lawyers to dismiss the case, this time called a “Motion for Directed Verdict” made on the record at the close of Plaintiff’s rebuttal case and in writing. (#1652)
Here a few excepts from that opinion:
In regard to the decade of intentional valuation misstatements, ” BUT A LIE IS STILL A LIE.”
(Thank you, Judge Engoron, that phrase will be tattooed on Trump for eternity!)
” … The most glaring flaw was the testimony of the defendants’ ‘experts’, … Bartov and Flemmons. Bartov was a tenured professor, but all that his testimony proves is that for a million or so dollars, some experts will say whatever you want them to say…. Professor Bartov lost all credibility.”
Mr. Flemmons acknowledged that he had never valued property, much less was he a valuation ‘expert’, but he attempted to opine on values.”
‘The contention by the defendant that a [real estate] ‘Closing’ is a get-out-of-jail-free card for future misstatements is belied by a plain reading of Executive Law Section 63(12), by the law of the case doctrine, and. perhaps most importantly, by common sense.’
“All that 63(12) requires is a false statement used in business; the subject financial statements fit that definition “to a T”.”
“The evidence in the record is replete with examples of material misstatements:
- the size of the triplex,
- the discrepancies between the appraised values and the amount on the SFCs (Statements of Financial Condition),
- the discrepancy in vale between restricted property and unrestricted property,
- the undisclosed addition of brand value,
- the amount of ‘cash’ that was illiquid,
- future value listed as present value without discounting to current value, etc.”
Conclusion and Final Arguments
After this blistering rebuke of FRAUDSTER Trump et al., and his attorneys’ combative presentation of the case, Judge Engoron set January 5, 2024 for any post-trial briefs, then final oral argument on January 11, 2024.
Final comment by the Editor and Legal Commentator >
As a practicing attorney with almost 40 years of trial experience, I am simply appalled at the tactics of Trump and his attorneys in defending his various civil and criminal cases. It is obvious that Trump rarely listens to the advice of his specialists – accountants or lawyers!
His hyper-inflated ‘stable genius’ ego overrides proven norms of success. Just another bully – but with money. He is the ‘con man’ and everyone else is ‘the mark’. Corporate bullies usually intimidate with bombastic behavior. But outside of the boardroom – and in the courtroom – that behavior can be a magnum ‘looser’!
The basic rules for lawyers in the courtroom > (1) If you do not have the law on your side, argue the facts; (2) if you do not have the facts on your side, argue the law; (3) but because Trump has neither, his tried and true method from his mentor, the late Roy Cohn, is to argue about everything – over and over and over ad nauseum – attack, attack, attack!
The saying, ‘Let Trump be Trump’ is stupid and ignorant. Trump has gone out of his way on his social media platform, on TV, and in the courtroom to irritate and attack the Judge – and everyone else.
Read between the lines in this Denial of a directed verdict by Judge Engoron. The final Judgment could be absolutely catastrophic for Trump because of HIS behavior. He will fare no better with the Appellate Courts. As a repetitive abusive and vexatious litigant – they want to get rid of him too!
Atty Timothy Mills, Editor and Legal Commentator, DemocracyWars.com.
Last Updated on December 19, 2023.
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