NEW YORK — New York state attorneys on Wednesday night called on an appeals court to uphold Donald Trump’s statements. nearly $500 million in civil fraud verdictarguing that there is “overwhelming evidence” to support a judge’s finding that the former president lied about his wealth for years as he built his real estate empire.
In documentation filed ahead of oral arguments next monthThe office of New York Attorney General Letitia James said the current Republican candidate the appeal is awash with “unfounded legal arguments” and ignores the volume of evidence presented during the trial showing that he and his co-defendants committed “fraud and illegality on an immense scale.”
“On appeal, defendants tellingly ignore nearly all of their deception,” Assistant Attorney General Daniel S. Magy wrote in a 168 page submission in the state’s intermediate court of appeals, better known as the Appellate Division.
Trump, his company and top executives, including his sons Eric and Donald Trump Jr., “prepared and used financial statements riddled with egregious misstatements and omissions to sustain over half a billion dollars in loans and generate over $360 million in ill-gotten gains,” Magy wrote.
The Appellate Division said Wednesday it will hear the case on Sept. 26, about six weeks before Election Day and just after early voting begins in some states. The court typically rules about a month after arguments, meaning a decision could come before the presidential race is over.
If the verdict is upheld, it threatens to damage Trump’s personal fortune, disrupt his Trump Organization and tarnish his identity as a shrewd businessman. As of Wednesday, the Trump defendants owe more than $485 million. That includes interest that continues to accrue even after Trump files a $175M Bond in April to stop the collection of the amount and prevent the state from seizing his assets while he appeals.
Trump is asking the Appellate Division to overturn Manhattan Judge Arthur Engoron’s Feb. 16 finding that he… lied to banks, insurers and others about his wealth on financial statements used to secure loans and close deals. He and his lawyers claim the verdict was “wrong” and “outrageous.”
The Appellate Division can uphold Engoron’s sentence, reduce or modify the sentence, or overturn the decision entirely. If Trump is unsuccessful in the Appellate Division, he can ask the state’s highest court, the Court of Appeals, to hear his case. If he wins, he won’t have to pay the state anything and his bail money will be returned.
Trump and his lawyers argue that the case should never have gone to trial, that the statute of limitations has barred some of the allegations, and that the state should not be overseeing private transactions. They also oppose the legal mechanics of James’ lawsuit, arguing that the law they are suing under is a consumer protection law normally used to rein in companies that rip off customers.
Trump denies wrongdoing, and he and his lawyers say no one was harmed. He has criticized the verdict as “election interference” and “using weapons against a political opponent,” complaining that he was being punished because he “built a perfect company, great money, great buildings, great everything.” James and Engoron are Democrats.
In their response Wednesday, the state’s attorneys argued that the statute of limitations had been properly applied and that state law gives the state attorney general the authority to take action against fraudulent or illegal business conduct, “whether directed at consumers, small businesses, large corporations or other persons or entities.”
Wednesday’s oral arguments present a timely opportunity for Trump to have a busy September as he campaigns to reclaim the White House while dealing with the fallout from multiple courtroom defeats.
Trump is expected to debate his Democratic opponent, Vice President Kamala Harris, on September 10. On September 16, the judge in Trump’s hush-money case is expected to rule on a defense motion to throw out the case. his conviction for a crime and dismiss the case grounds for presidential immunityTrump is expected to be sentenced in the criminal case two days later, though his lawyers have asked for the trial to be postponed until after Election Day, Nov. 5.
Engoron found that Trump, his company and top executives had spent years fiddling around by inflating his financial statements to create the illusion that he and his properties were more valuable than they really were. Trump inflated his net worth on financial statements by as much as $800 million to $2.2 billion a year, state attorneys said.
In addition to the hefty fine, the judge imposed strict restrictions on Trump’s company’s ability to do business. Among other things, Engoron placed the Trump Organization under the supervision of a court-appointed monitor for at least three years.
If Engoron’s ruling is upheld, Trump will be forced to resign from office. significant portion of his fortuneThe judge ordered Trump to pay $355 million in fines, which he said represented “ill-gotten gains” from his inflated financial statements, including lower interest rates on loans and profits from projects he otherwise would not have been able to complete.
Including interest, the total was $485.2 million as of Wednesday — including $20.6 million in interest that has accrued since the verdict. The amount will increase by nearly $112,000 a day until he pays, unless the verdict is overturned.
Trump claims he is worth billions of dollars and testified last year that he had about $400 million in cash, along with properties and other investments. James has said that if Trump can’t pay, she will seek to seize some of his assets.
In a document filed last month, Trump’s lawyers said that if Engoron’s ruling is upheld, it would give James “unlimited power” to target anyone she wants, including her self-declared political opponents.