In a significant move on January 5, 2024, New York's Attorney General, Letitia James, proposed a sweeping lifetime ban on former President Donald Trump from participating in New York's real estate industry. The proposal, presented before a judge, seeks to prohibit Trump from serving as an officer or director of any New York corporation and includes a substantial fine of $370 million.
The legal action also extends to Donald Trump Jr. and Eric Trump, the former president's sons, with the Attorney General pushing for a five-year ban for them from New York's real estate sector. This request is part of a new court filing, following weeks after the conclusion of testimony in a high-profile civil fraud case held at the Manhattan Supreme Court.
At the heart of the case, brought forward by James, are allegations against Donald Trump, his sons, and the Trump Organization. They are accused of a widespread scheme involving the misrepresentation of the true values of various real estate assets. These alleged misstatements were purportedly made to gain financial benefits, such as securing favorable loan terms.
James' allegations also include claims that Donald Trump inflated his net worth statements by figures ranging from $812 million to $2.2 billion due to these false valuations. The proposed $370 million fine encompasses $168 million in interest payments that the former president allegedly evaded through fraudulent means.
Responding to these allegations, Donald Trump has denied all claims, dismissing them as politically motivated. Alina Habba, Trump's attorney, labeled James' filing as "absurd" and a form of politically motivated persecution against a leading Republican presidential candidate. Habba asserts that Trump and his associates have done nothing wrong and that the case has shown that his statements were undervalued rather than inflated.
Trump's legal team, in their filings, argued that the evidence presented at the trial does not substantiate the claims of intended fraud against lenders or other parties. The final decision in this high-stakes legal battle rests with Judge Arthur Engoron, who is expected to deliver his ruling in the coming weeks. This case continues to draw national attention, underscoring the ongoing legal challenges facing the former president and his business empire.
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