Judge to Decide if Former President Donald Trump Committed Fraud in Loan Applications, Setting Precedent for Future Legal Battles

A New York judge heard arguments Friday in a civil suit brought by New York Attorney General Letitia James against former President Donald Trump. The suit alleges that Trump committed fraud when he applied for loans by valuing properties far higher than appraisers.

Trump’s lawyers argued that James has “no valid authority” to sue, that the lawsuit was filed outside the statute of limitations and that her office has “failed to demonstrate any even theoretical harm to anyone.” Judge Arthur is expected to rule on the scope of the trial before it begins on October 2.

James has also asked the judge to rule before trial that Trump and his company provided banks with financial statements that purposefully misrepresented his wealth by as much as $3.6 billion.

The case is the latest in a string of legal battles Trump has faced since leaving office. Trump has denied any wrongdoing and has argued that he was simply applying his “investment genius” to the valuations.

The outcome of the trial could have major implications for Trump’s future legal battles. If the judge rules in favor of James, it could set a precedent for other cases against Trump. If the judge rules in favor of Trump, it could be seen as a sign that the former president is immune from prosecution. The judge is expected to make a ruling in the coming weeks.