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Donald Trump’s lawyers seek to halt civil fraud trial and block ruling disrupting real estate empire

by Ethan Kim
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fraudulent valuation

Donald Trump’s legal team has made a request to a New York appeals court to pause his civil fraud trial in Manhattan. This move comes in response to a recent court ruling that called for the dissolution of companies controlling some of Trump’s most valuable assets, including Trump Tower.

Trump’s lawyers are seeking to temporarily suspend the trial in the lawsuit brought by New York Attorney General Letitia James and prevent Judge Arthur Engoron from enforcing his ruling, which involves revoking Trump’s business licenses and placing a court-appointed receiver in charge of his companies.

In a 41-page appellate brief, Trump’s attorneys, Clifford Robert, Michael Farina, and Michael Madaio, expressed their concern that Judge Engoron may not fully grasp the extent of the turmoil caused by his decision. They argue that seizing Trump’s companies would have severe and irreparable consequences not only for Trump and his co-defendants but also for employees and others who rely on these entities for their livelihoods.

Previously, the appellate court had rejected a last-minute attempt by the defense to delay the trial just days before it commenced. Trump’s legal team also withdrew a lawsuit against Judge Engoron as part of their challenge.

The appellate court has yet to render a decision on this latest appeal.

The office of Attorney General Letitia James has indicated its willingness to discuss delaying the enforcement of Judge Engoron’s ruling until after the trial and a decision on the remaining six claims in the lawsuit against Trump and other defendants. However, this delay would only be considered if the trial proceeds as scheduled, as outlined in a letter from Senior Assistant Solicitor General Dennis Fan to the appellate court.

Fan argued against disrupting an ongoing trial, citing the extensive planning, security arrangements, and scheduling commitments involved, especially concerning Trump’s attendance and public access.

Despite ongoing legal maneuvers to delay the proceedings, Attorney General James expressed confidence in the strength of her case, emphasizing that justice will ultimately prevail.

In his recent ruling, Judge Engoron found that Trump had engaged in years of fraudulent activities during the establishment of his real estate empire, actions that played a significant role in his rise to fame and the presidency. The judge’s decision was based on the primary claim in James’ lawsuit, which asserted that Trump consistently misled banks, insurers, and other parties by inflating the value of assets on his annual financial statements, which were instrumental in securing deals and loans.

Trump maintains his innocence, contending that the worth of some of his assets exceeds the values stated in his financial statements.

Judge Engoron has outlined procedures for enforcing his ruling, including the submission of potential receiver names and the appointment of a court monitor. He also ordered the defendants to provide advance notice of any new business license applications or attempts to create new entities related to companies affected by the ruling.

Trump’s legal team criticized Engoron’s decision, characterizing it as an unjust “corporate death penalty” imposed without sufficient rationale or legal basis. They also expressed dissatisfaction with the judge’s lack of clarity regarding the real-world consequences of his ruling, deeming it an “overbroad directive” causing confusion and chaos in its execution.

Frequently Asked Questions (FAQs) about Legal Battle

What is the central issue in the legal battle involving Donald Trump?

The central issue in the legal battle is the civil fraud trial against Donald Trump, initiated by New York Attorney General Letitia James. It centers on allegations of Trump’s fraudulent activities during the creation of his real estate empire.

What are the key actions taken by Trump’s legal team in response to the trial?

Donald Trump’s legal team has requested the New York appeals court to halt the civil fraud trial. They are also seeking to prevent the enforcement of a court ruling that calls for the dissolution of companies controlling Trump’s valuable assets.

What is the significance of the court ruling by Judge Arthur Engoron?

Judge Arthur Engoron’s ruling has revoked Trump’s business licenses and placed a court-appointed receiver in charge of his companies. It also accuses Trump of routinely deceiving banks and other entities by inflating asset values in his financial statements.

How has the appellate court responded to the legal proceedings?

The appellate court has rejected the defense’s attempt to delay the trial and has yet to make a decision on the latest appeal.

What is the stance of New York Attorney General Letitia James in response to delaying enforcement of the ruling?

Attorney General James is open to discussing delaying the enforcement of Judge Engoron’s ruling but only if the trial proceeds as scheduled. This is outlined in a letter from Senior Assistant Solicitor General Dennis Fan to the appellate court.

What steps has Judge Engoron taken to enforce his ruling?

Judge Engoron has set procedures for enforcing his ruling, including the submission of potential receiver names and the appointment of a court monitor. He has also required advance notice of any new business license applications or attempts to create new entities related to affected companies.

How does Donald Trump respond to the allegations?

Donald Trump maintains his innocence and argues that the value of some of his assets exceeds the values stated in his financial statements.

What concerns does Trump’s legal team express regarding Judge Engoron’s ruling?

Trump’s legal team is concerned about the severe and irreparable harm they believe will be inflicted on Trump, co-defendants, employees, and others who rely on the affected entities for their livelihoods if the ruling is enforced. They also criticize the ruling as lacking clarity and causing confusion in its execution.

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