Donald Trump
"repeatedly" misrepresented his wealth - by up to $3.6bn (£3bn) - to
banks and insurers, a New York judge has ruled.
The decision
resolves the key claim made by New York's attorney general in her civil lawsuit
against the former president.
"The
documents here clearly contain fraudulent valuations that defendants used in
business," the judge wrote.
It is a major
blow for Mr Trump before the case goes to trial next Monday.
Attorney General
Letitia James sued Mr Trump last September, accusing him, his two adult sons
and the Trump Organization of lying about his net worth and asset values
between 2011 and 2021.
Ms James claimed
the defendants issued false business records and financial statements in order
to get better terms on bank loans and insurance deals, and to pay less tax.
In a trial that
will now resolve six remaining claims in her suit, she will seek $250m in
penalties and a ban on Mr Trump doing business in his home state.
The non-jury
trial is scheduled to begin 2 October and last until at least December.
In a pre-trial
phase of the case known as summary judgement, Ms James had asked Justice Arthur
Engoron of the New York state court in Manhattan to rule on her claims.
She argued that
finding certain facts to be beyond dispute would speed up the trial.
Defence lawyers
for Mr Trump, meanwhile, called for the suit to be thrown out, arguing the
public had not been harmed by Mr Trump's actions and the loans in question
occurred long ago.
Mr Trump has
previously denied wrongdoing, dismissing the case in New York as another
political "witch hunt" brought by a prosecutor biased against him.
New York
attorney general Letitia James wants the Trumps to repay $250m that she says
was illegally obtained
As part of
Tuesday's decision, the Trump Organization was ordered to cancel its New York
business licenses and, within 10 days, recommend independent monitors who could
oversee that process.
That is a legal
loss for the New York native, who now lives in Florida.
The judge's
ruling will not dissolve his company but could end his control over signature
New York properties like the Trump Tower and the Trump Building at 40 Wall
Street.
Judge Engoron on
Tuesday also denied the Trump team's request to throw out the case, and
separately fined five Trump attorneys $7,500 each for making arguments already
rejected by the court.
During arguments
in court on Friday, a lawyer with Ms James' office said the former president
had signed off on statements that overinflated the valuations offered by
appraisers his company hired.
But Trump
attorney Christopher Kise argued doing so showed that Mr Trump was an
"investment genius" and "a master at finding value where others
see nothing".
Judge Engoron
did not buy it. Repeatedly lobbing questions at and interrupting Mr Kise, he at
one point banged his fist on the bench and raised his voice.
"You cannot
make false statements and use them in business - that's what this statute
prohibits," he said.
His summary
judgment went further, arguing that Mr Trump's behaviour amounted to more than
simply bragging about his riches and that he and his company had repeatedly
lied about his financial affairs.
"In
defendants' world, rent-regulated apartments are worth the same as unregulated
apartments; restricted land is worth the same as unrestricted land;
restrictions can evaporate into thin air," he wrote.
"That is a
fantasy world, not the real world."
Mr Trump is
still seeking to delay the trial in New York and has sued the judge.
An appeals court
is set to rule this week on that lawsuit. If it rules against him, Mr Trump
will have to fight out the rest of the case in court.
It is just one
of several legal battles he is enmeshed in as he campaigns for a rematch with
President Joe Biden next year and a return to the White House.
Far and away the
frontrunner to win the Republican nomination, he is also facing 91 felony
charges across four criminal cases. He has pleaded not guilty
By Sam Cabral || BBC News, Washington
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