The most recent developments in Donald Trump’s civil fraud trial indicate a challenging situation for the former president. The trial, which has been ongoing for two months, does not appear to be going favorably for Trump. The judge in the case has already ruled that Trump committed fraud and imposed fines on him for violating a gag order. Trump’s legal team has been presenting a defense that relies heavily on expert witnesses and testimony from Donald Trump Jr., but they have also been focused on appealing the verdict and claiming bias on the part of the judge and his law clerk.
The crux of the lawsuit by New York Attorney General Tish James revolves around allegations that Trump fraudulently inflated his net worth on financial documents to receive favorable treatment from banks and insurers, a claim to which Justice Arthur Engoron has already ruled in the affirmative.
Additionally, there are other potential penalties being considered. The ongoing bench trial is determining whether Trump, his adult sons, and other defendants should face further punishments, including a proposed $250 million in penalties and a possible bar on Trump and his sons from serving as officers or directors of any business in New York, as well as barring Trump and the Trump Organization from acquiring real estate in New York for five years.
An intermediate appeals court has paused an order from Judge Engoron that would have canceled Trump’s business certificates while it considers his appeal. This decision holds significant implications for Trump’s business empire, including entities such as Trump Tower and the Trump Organization. If the appeal is unsuccessful and the pause on the order is lifted, it could lead to the stripping of these business certificates, which would have severe consequences for the companies involved.
The legal process is expected to be drawn out, with the possibility of an appeal to the state’s highest court and potentially even to the U.S. Supreme Court if constitutional rights issues are raised. In the meantime, Trump’s legal team may seek an emergency stay of payments, thereby delaying any monetary penalties that might be imposed.