NEW YORK (AP) — New York state attorneys urged an appeals court late Wednesday to uphold Donald Trump’s nearly $500 million civil fraud conviction, arguing that “overwhelming evidence” supports the judge’s conclusion that the former president lied for years about his wealth. built his real estate empire.
Filed ahead of oral arguments next month, the office of New York Attorney General Letitia James said the Republican incumbent’s complaint is riddled with “unsound legal arguments” and ignores several pieces of trial evidence that show he and his co-defendants engaged in “fraud.” and lawlessness on a massive scale.”
“The defendants ignore almost all of their fraud on appeal,” Assistant Solicitor General Daniel S. Magy wrote in a 168-page brief to the state’s mid-level appeals court, known as the Appellate Division.
Trump, his companies and top executives, including his sons Eric and Donald Trump Jr., “created and used financial statements filled with gross misrepresentations and omissions to maintain more than half a billion dollars in loans and generate more than $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 issues its decision about a month after the disputes, which means that the decision may come before the end of the presidential election.
If upheld, the ruling threatens to destabilize Trump’s personal wealth, disrupt his Trump Organization and damage his identity as a savvy businessman. As of Wednesday, Trump’s defendants owe more than $485 million. That includes interest that continues even after Trump issued a $175 million bond in April to halt collection and prevent the state from seizing his assets during his appeal.
Trump is asking the appeals division to overturn a February 16 finding by Manhattan Judge Arthur Engoron that he lied to banks, insurance companies and others about his wealth in financial statements used to secure loans and make deals. He and his lawyers claim the sentence was “flawed” and “malicious”.
The Appellate Division can either uphold Engoron’s sentence, reduce or change the sentence, or overturn the decision entirely. If Trump fails in the appeals division, he can ask the state’s highest court, the Court of Appeals, to consider taking his case. If he wins, he doesn’t have to pay the government anything and he gets his loan money back.
Trump and his lawyers argue that the case should never have gone to trial, that the statute of limitations barred some of the allegations, and that the government should not monitor private transactions. They also object to the legal mechanics of James’ lawsuit, arguing that the law he’s suing him under is a consumer protection law that’s generally used to crack down on companies that cheat customers.
Trump denies wrongdoing, and he and his lawyers say no one was hurt. He has denounced the sentence as “interference in elections” and “arming a political opponent”, complaining that he was punished for “building a perfect company, big money, great buildings, fancy everything”. James and Engoron are Democrats.
In a response Wednesday, state attorneys general said the statute of limitations was properly applied and that state law authorizes the state attorney general to take action against fraudulent or illegal business practices, “whether directed at consumers, small businesses, large corporations or other individuals or entities.”
Wednesday’s schedule of oral arguments adds to Trump’s busy September, as he campaigns to retake the White House while reeling from several courtroom defeats.
Trump is scheduled to debate his Democratic opponent, Vice President Kamala Harris, on September 10. On September 16, the judge in Trump’s hush money criminal trial is expected to rule on a defense request to overturn his criminal conviction and dismiss the case. grounds of presidential immunity. Two days later, Trump is scheduled to be sentenced in the criminal case – although his lawyers have asked that it be delayed until after Election Day on November 5.
Engoron found that Trump, his companies and top executives schemed for years to inflate his financial statements to create the illusion that he and his assets were worth more than they really were. Trump inflated his net worth in the financial statements by as much as $800 million to $2.2 billion a year, state attorneys said.
In addition to the severe monetary penalty, the judge imposed severe restrictions on Trump’s company’s ability to conduct business. Among other consequences, Engoron placed the Trump Organization under the supervision of a court-ordered monitor for at least three years.
If Engoroni’s decision is upheld, it will force Trump to divest a large portion of his assets. The judge ordered Trump to pay $355 million in fines, accounting for what he said were “ill-gotten gains” that resulted from his exaggerated financial statements, including lower interest rates and profits from projects he otherwise could not have completed.
The total, including interest, was $485.2 million as of Wednesday — including $20.6 million in interest that has accrued since the judgment. That amount will increase by nearly $112,000 a day until he pays, unless the conviction is overturned.
Trump claims to be worth several billion dollars and testified last year that he had about $400 million in cash in addition to real estate and other investments. James has said that if Trump can’t pay, he will try to seize some of his assets.
Trump’s lawyers said in a filing last month that if upheld, Engoroni’s decision would give James “unlimited power” to target anyone, including his self-described political opponents.
