New York Judge Orders Cancellation of Business Certificates for Trump-Owned Firms, Threatening Future of Trump Organization
A New York judge has delivered a significant blow to former President Donald Trump and his business empire by ordering the cancellation of business certificates for firms owned by Trump and others associated with the Trump Organization. This ruling calls into question the future of the private sector empire that Trump has built his reputation on.
The directive was issued as part of a pretrial ruling in a $250 million civil fraud trial, which found Trump guilty of submitting “fraudulent valuations” for assets. These valuations were then used by Trump, his sons, and his business to obtain more favorable loan and insurance terms. Judge Arthur Engoron, in a scathing order on Tuesday, cited various instances of false and misleading valuations, including Trump’s Fifth Avenue apartment.
Eric Trump, who oversees the day-to-day operations of the Trump Organization, took to Twitter to express his disapproval of the ruling. He stated, “Today, I lost all faith in the New York legal system. Never before have I seen such hatred toward one person by a judge.” Eric Trump also defended the Trump Organization, highlighting its success in making timely loan payments, generating millions of dollars for banks, and developing iconic assets.
Trump’s attorney, Alina Habba, has announced plans to immediately appeal the judge’s decision, which she called “fundamentally flawed.” Additionally, Trump may seek an emergency stay of the trial.
While the trial is still set to proceed next week, Judge Engoron stated that the court needs to address six remaining causes of action alleged by Attorney General Letitia James, as well as determine the potential penalties Trump may face.
The ruling holds significant implications for the Trump Organization and its assets, although the exact scope of the decision remains uncertain. The order cancels business certificates for New York-based companies controlled by Donald Trump, his sons, and former Trump Organization officials Allen Weisselberg and Jeffrey McConney. This effectively prevents these firms from conducting business in the state.
Prominent Trump properties that could be affected include Trump Tower in Midtown Manhattan, Trump National Golf Club in Westchester County, and The Trump Building on Wall Street. Hundreds of employees and a substantial portion of the Trump Organization’s holdings are tied to these businesses.
However, the ruling does not extend to the Trump Organization as a whole, allowing its entities outside of New York to continue operations.
The parties involved in the lawsuit now have 10 days to recommend potential receivers to oversee the dissolution of the affected businesses. This process may lead to the forced closure of entities and the potential sale of their assets.
Several unanswered questions remain regarding how the judge’s order will be executed. Trump’s attorney, Chris Kise, sought clarification on which of Trump’s numerous business entities are covered by the ruling. Judge Engoron deferred the question to a future private meeting between the parties.
The outcome of these deliberations will determine the consequences for the Trump Organization, which includes properties such as Mar-a-Lago in Florida and the Trump International Hotel in Washington, D.C.
Furthermore, the upcoming trial will determine the financial penalties Trump may face, which could amount to hundreds of millions of dollars. The decision could also prohibit Trump from making real estate acquisitions and applying for loans in New York.
The cancellation of business certificates for Trump-owned firms represents a significant setback for the former president and raises doubts about the future of his business ventures. The legal battle will continue to unfold, with potential far-reaching implications for the Trump Organization and its assets.