The New York fraud case where prosecutors allege Trump inflated his net worth by billions of dollars to get bank loans, insurance policies could impact him financially and politically.
Former US president Donald Trump will begin a monthslong courtroom battle which kickstarts in New York this week. A report by the Wall Street Journal said that it could cost him several hundred million dollars in penalties if charged.
The trial will see Trump face New York Attorney General Letitia James who in a 2022 suit accused Trump of inflating his net worth by billions of dollars in a scheme to get bank loans and insurance policies in favourable terms.
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James says she has over 50 witnesses which include accountants, bankers and Trump Organization employees. James says that these witnesses will provide a glimpse on Trump’s business practices which will reveal that the real estate mogul-turned-politician participated in a major financial scandal.
Trump’s legal team, according to the Wall Street Journal, are questioning James’ motives and highlighting that the transactions in question were profitable, with no indication of defaults or late payments on loans. They steered clear of giving an exact number but indicated they could bring 100 witnesses. They claim Trump is being pursued for political reasons.
“Democrats are seeking to bring down the world-famous ‘Trump Tower’ and impose what some are calling ‘the corporate death penalty’ upon me,” Trump said.
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The Wall Street Journal report said that the case took a dramatic turn after New York State Supreme Court judge Arthur Engoron ordered the cancellation of certificates which allow Trump’s real estate entities to operate in New York. This means potential loss of control of some of his New York properties and possible liquidation of those properties. He said that Letitia James proved that the former president’s flagship Manhattan building Trump Tower, his Mar-a-Lago residence in Florida and golf courses were falsely valued by the former president and his relatives.
Letitia James is also seeking $250 million in penalties. She claims this is the amount Trump received illegally. She wants Trump and his company banned from entering New York state commercial real-estate acquisitions and applying for loans with state-registered lenders for five years, the Wall Street Journal report said.
Letitia James is demanding that an independent auditor provide a true accounting of Trump’s net worth and an order be pronounced that compels the Trump Organization to do the same.
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The calls for penalty imposition and the four criminal cases and charges brought by the Justice Department and prosecutors in New York and Georgia means Trump is amassing a large legal bill.
This also means that this would impact Trump’s wallet and bring down his total net worth.
Trump has touted an image of being a successful businessman in order to gain political mileage and it played a role in 2016 when he won the elections.
But the bills alone and the possibility of Engoron insisting that a court-appointed receiver sell Trump’s properties could impact him financially as he and his company might have to accept low prices due to the current status of the real-estate market.
This can also impact him politically as the civil trial could impact cases in Georgia. Prosecutors could cite these points in those cases to claim that the former president’s character is an issue.
