State of New York vs Trump, et al - the civil fraud case against the Trump Organization

[Luke]

SMACKDOWN FRIDAY!!


The 699th were seen in the courthouse right before the Order.

[neonzx]

[Flatpoint High]

$364 million; banned from doing business in NY for 3 years

imho, the 3 year ban is about equivalent to the CDP, sine he can't do business in NY nor any business with a NY presence

[raison de arizona]

https://iapps.courts.state.ny.us/nyscef ... AYz6FyeA==

[Slim Cognito]

Won't someone think of the ketchup?!?!

[Flatpoint High]

Won't someone think of the ketchup?!?!

<iframe src="https://giphy.com/embed/ZZO4GlQRTD7J4BHtRG" width="480" height="266" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href=" GIPHY</a></p>

[Slim Cognito]

Does this stand under the umbrella of if you want to appeal, you have to post a ginormous bond?

[raison de arizona]

When confronted with the 2002 deed18 in which he signed away, in perpetuity,
the right to use or develop Mar-a-Lago as anything other than as a social club, in exchange for a
conservation easement tax benefit, he offered that “when you say, ‘intend,’ intend doesn’t mean
we will do it.” PX 1730; TT 3533-3535.
Nonetheless, Donald Trump insisted that he believed Mar-a-Lago is worth “between a billion
and a billion five” today, which would require not only valuing it as a private residence, which
the deed prohibits,19 but as more than the most expensive private residence listed in the country
by approximately 400%.
20

Overall, Donald Trump rarely responded to the questions asked, and he frequently interjected
long, irrelevant speeches on issues far beyond the scope of the trial. His refusal to answer the
questions directly, or in some cases, at all, severely compromised his credibility.

Ivanka Trump was a thoughtful, articulate, and poised witness, but the Court found her
inconsistent recall, depending on whether she was questioned by OAG or the defense, suspect.
In any event, what Ms. Trump cannot recall is memorialized in contemporaneous emails and
documents; in the absence of her memory, the documents speak for themselves.

Each and every year, he valued Mar-a-Lago as if it could be sold as a single-family residence,
notwithstanding the deeded prohibitions against such use in perpetuity. TT 759, 775.
Further, when Patrick Birney took over for McConney in preparing the valuations for the SFCs,
Weisselberg and McConney both concealed from Birney the 1995 and 2002 deeds. TT 1258-
1259. When valuing Mar-a-Lago on the SFCs from 2016-2021, McConney and Weisselberg
selected comparables for Birney to use that were exclusively for private residences. TT 1248-
1256, 1268-1282; see, e.g., PX 3026.
There is no legal gray area surrounding the permanent nature of the deed restrictions. PX 1013.
Accordingly, there can be no mistake that Donald Trump’s valuation of Mar-a-Lago from 2011-
2021 was fraudulent.

[Slim Cognito]

Won't someone think of the ketchup?!?!

<iframe src="https://giphy.com/embed/ZZO4GlQRTD7J4BHtRG" width="480" height="266" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href=" GIPHY</a></p>

This is my new favorite gif. Sorry Kermit.

[raison de arizona]

Accordingly, Donald Trump, the Donald J. Trump Revocable Trust, the Trump Organization,
Inc., Trump Organization LLC, and the Trump Old Post Office LLC are jointly and severally
liable, in the amount of $126,828,600, for the ill-gotten profits Donald Trump netted from the
sale of the Old Post Office.
Eric Trump is liable, in the amount of $4,013,024, for the profit distribution he individually
received from the sale of the Old Post Office.
Donald Trump, Jr. is liable, in the amount of $4,013,024, for

Ferry Point Profit
Similarly, Donald Trump, the Donald J. Trump Revocable Trust, the Trump Organization, Inc.,
and Trump Organization LLC are jointly and severally liable for disgorgement of the windfall
profits of $60 million attributable to selling Ferry Point to Bally’s. By maintaining the license
agreement for Ferry Point, based on fraudulent financials, Donald Trump was able to secure a
windfall profit by selling the license to Bally’s Corporation. Quintel Corp., N.V. v Citibank,
N.A., 596 F Supp 797, 804 (SDNY 1984) (“defrauders will be required to disgorge windfall
profits”).
Allen Weisselberg’s Severance Payments
There is substantial evidence that Allen Weisselberg’s $2 million separation agreement was
negotiated to compensate him for his continued non-cooperation with any entities with any legal
interests “adverse” to defendants. Moreover, as Weisselberg was a critical player in nearly every
instance of fraud, it would be inequitable to allow him to profit from his actions by covering up
defendants’ misdeeds.
Accordingly, Allen Weisselberg is liable for the money he has received from this separation
agreement as ill-gotten gains. S.E.C. v Razmilovic, 738 F 3d 14, 33 (2d Cir 2013) (“The court
also reasonably ruled that Razmilovic should disgorge his $5 million severance payment”).
Although he was promised $2 million in total, at the time of his testimony, he had received only
$1 million. PX 1751. Accordingly, Allen Weisselberg must disgorge the $1 million he has
already received as ill-gotten gains.

Thus, the Trump Organization does not have the ability to operate with a functional financial
reporting structure that would protect against fraud in the future. The fact that there are virtually
no internal controls in place at the Trump Organization, “creates an atmosphere conducive to
fraud.” People v Northern Leasing Sys., Inc., 193 AD3d 67, 75 (1st Dept 2021).
Moreover, the fact that the Trump Organization has refused to prepare SFCs, even though
various loan covenants obligate them to do so, ever since the monitor was appointed, leads the
Court to conclude that the Trump Organization cannot, or will not, prepare an accurate SFC that
is GAAP compliant and that values assets at their estimated current values. That the Trump
Organization has taken to manufacturing its own version of its assets, one that fails to include
any valuations, is a telling admission that it simply cannot, or will not, prepare an SFC without
committing fraud.

[Slim Cognito]

It's going to take a crowbar to get this smile off my face.

[raison de arizona]

Engoron went to Trump University.

Trump Organization’s History of Corporate Malfeasance
In considering the need for ongoing injunctive relief, this Court is mindful that this action is not
the first time the Trump Organization or its related entities has been found to have engaged in
60 Thus, even after Weisselberg pleaded guilty to committing fraud at the Trump Organization, Eric
Trump and Donald Trump, Jr. left Weisselberg in his critical role as CFO for an additional five months.
INDEX NO. 452564/2022
NYSCEF DOC. NO. 1688 RECEIVED NYSCEF: 02/16/2024
87 of 92
Page 88 of 92
452564/2022 PEOPLE OF THE STATE OF NEW YORK, BY LETITIA JAMES, ATTORNEY GENERAL OF THE STATE OF NEW YORK vs.
corporate malfeasance. Of course, the more evidence there is of defendants’ ongoing propensity
to engage in fraud, the more need there is for the Court to impose stricter injunctive relief. This
is not defendants’ first rodeo.
In August 2013, OAG sued Donald Trump, the Trump Organization, and affiliated entities doing
business as “Trump University” for fraud in the marketing and operation of “Trump University.”
People v Trump Entrepreneur Initiative LLC, Sup Ct, NY County, Index No. 451463/2013. That
litigation was resolved as part of a class action settlement in which Donald Trump and the Trump
Organization agreed to pay $25 million to Trump University clients.

Accordingly, this Court finds that defendants are likely to continue their fraudulent ways unless
the Court grants significant injunctive relief.

[Luke]

From the Trump Order by Judge Engoron: Refusal to Admit Error: The English poet Alexander Pope (1688-1744) first declared, “To err is human, to forgive is divine.” Defendants apparently are of a different mind.

Refusal to admit error.JPG (257.88 KiB) Viewed 321 times

[raison de arizona]

The evidence is overwhelming that Allen Weisselberg and Jeffrey McConney cannot be
entrusted with controlling the finances of any business. Accordingly, this Court hereby
permanently enjoins Allen Weisselberg and Jeffrey McConney from serving in the financial
control function of any New York corporation or similar business entity operating in New York
State.
The Court hereby enjoins Donald Trump, Allen Weisselberg, and Jeffrey McConney from
serving as an officer or director of any New York corporation or other legal entity in New York
for a period of three years.
The Court hereby enjoins Donald Trump and the Trump Organization and its affiliates from
applying for loans from any financial institution chartered by or registered with the New York
State Department of Financial Services for a period of three years.
The Court hereby enjoins Eric Trump and Donald Trump, Jr. from serving as an officer or
director of any New York corporation or other legal entity for a period of two years.

[raison de arizona]

Music to my ears. Can't hardly wait for the Truth-plosion.

[New Turtle]

For the 3 years, they also have to keep the court monitor on board to oversee all transactions and I guess to help them pay their fines.

[raison de arizona]

For the 3 years, they also have to keep the court monitor on board to oversee all transactions and I guess to help them pay their fines.

Clearly they are full of shite. It is known.

[SuzieC]

I assume that interest will start accumulating on the $364 million as well.

[Tiredretiredlawyer]

It's going to take a crowbar to get this smile off my face.

I wouldn’t dream of it!

[RTH10260]

The biggest looser in this ruling seems to be Weisselberg. He lost his separation funds that were set to the tune of his prior fine of approx $2million. So he has to return the $1 million already received to the state, but is also stuck with the original fine

[Maybenaut]

The biggest looser in this ruling seems to be Weisselberg. He lost his separation funds that were set to the tune of his prior fine of approx $2million. So he has to return the $1 million already received to the state, but is also stuck wioth the original fine

And he can’t get a job! At least not in NY anyway.

[SuzieC]

I’m seeing reports that there’s also pre-judgement interest accrued on the penalties (NY has a mandated 9% interest rate) that could push the totals up to $450 million or more.

[much ado]

So I have a couple of questions...

When does Tramp actually have to pony up some real cash, either for the fine or for the bond on appeal? Is it 30, 60 days?

What real effect does the ruling have on Tramp's NY-registered businesses? Can they still conduct real estate transactions, receive rent due, and such things?

[neonzx]

Music to my ears. Can't hardly wait for the Truth-plosion.

His campaign has already texted me a money beg over this.

[RTH10260]

Question: why is the business ban seet to only 3 years. I would have expected it to be higher. Though getting back in touch with the business after that time could be difficult considering that a new management will have to restructure the business in a way that confirms with general expectaions of non-mafia enterprises. Finding ones way back into that environment must be daunting to the spawns.