Judge Rules in Favor of New York Attorney General’s $250 Million Lawsuit Against Former President Donald Trump and His Company

A New York judge has ruled in favor of the state attorney general’s $250 million lawsuit against former President Donald Trump and his company, finding that Trump committed repeated acts of fraud for years.

Judge Arthur Engoron ruled Tuesday that Trump and his company provided banks with financial statements that misrepresented his wealth by as much as $3.6 billion. Engoron said Trump lied to banks and insurers by both overvaluing and undervaluing his assets when it was to his benefit, while at the same time exaggerating his net worth to the tune of billions of dollars.

The ruling allows the civil trial to begin next week as requested by New York Attorney General Letitia James. In his 35-page ruling, Engoron ordered the defendants’ New York business certificates canceled and wrote that Trump’s legal arguments defending the statements are based in “a fantasy world, not the real world.”

“The documents here clearly contain fraudulent valuations that defendants used in business,” Engoron wrote.

The lawsuit, which was filed in 2018, alleges that Trump and his company engaged in a pattern of persistent illegal conduct, including repeated misstatements and omissions, which deceived investors, lenders, and insurance companies. Trump has denied the allegations and has argued that the lawsuit should be dismissed.

The civil trial is scheduled to begin on October 2. It is unclear how the ruling will affect the trial, but it is likely to be a major factor in the proceedings.