- Trump faces the prospect of losing some of his flagship properties in New York
- They will be placed in receivership if the October 2 trial goes against him
- It means he will not be able to sell the assets or use them to secure loans
Donald Trump could lose control of Trump Tower, his Westchester golf club and other New York properties after a judge ruled that he lied about his wealth for years and committed fraud by submitting false valuations to secure loans.
New York Judge Arthur Engoron ruled that Trump committed fraud for years while building the real estate empire that catapulted him to fame and the White House, after prosecutors charged he inflated property valuations with lenders and diminished them with tax authorities.
The decision could end the former president’s control over his flagship Trump Building at 40 Wall Street in Lower Manhattan and his iconic residence Trump Tower.
Trump could also lose his family estate and his golf club in Westchester County.
The decision means Trump would still own the properties, but they would be placed in receivership.
He would no longer be able to sell off any assets or use them to secure loans. If they are sold by the court, Trump would not see any returns until debts and liabilities have been paid.
Experts have called this decision a ‘corporate death penalty’.
The former president railed against the decision, taking to Truth Social to say it was ‘a very sad day for the New York State System of Justice’.
‘Today’s Ruling about a Company that has done a magnificent job for New York State fails to acknowledge the fact that Murder and all other forms of Violent Crime have reached record levels in New York State,’ he wrote.
‘Can you imagine ruling against me for having done business perfectly, and yet letting people go on a rampage on the sidewalks of New York?
‘This is the Judicial conduct that is forcing thousands of companies to flee New York for other environs, while virtually nobody comes back to the City or State.’