Huge Legal Loss for Trump as NY AG James Gets the Go-Ahead for Trial
While Kevin McCarthy fought for Speaker of the House, former President Donald Trump was dealt a serious legal setback when a New York judge denied his plea to dismiss the continuing lawsuit by state Attorney General Letitia James against the Trump Organization, himself, and his family.
Legal analysts thought it improbable that Manhattan Supreme Court Justice Arthur Engoron would reverse his conclusions on previously rejected legal arguments from Trump's legal team. Judge Engoron already imposed an observer on the Trump Organization last year, and on Friday, in a written order, he ruled that Trump's repetition of the arguments was literally "frivolous."
He insulted Trump's laws, writing, "Reading these arguments was, to quote the baseball sage Lawrence Peter ('Yogi') Berra, 'Déjà vu all over again,’' the judge wrote."
Judge Engoron also rejected Trump's arguments that some of the alleged fraudulent conduct occurred beyond the statute of limitations allowed under the law. Putting forth that argument was a loser since the conduct alleged by NYAG Letitia James had continued for years, even into his presidency, and established latches that made any statute of limitations mute.
As if that wasn't devastating enough, Judge Engoron ruled that Ivanka Trump, who left the employment of the Trump Org to go to the White House in 2017, argued that the claims against her were time-barred because she didn't personally falsify any business records. Judge Engoron held the opinion that the attorney general's office has alleged liability 'sufficiently' he liability to survive a motion to dismiss.
Trump Lawyers also Face Possibly Sanctions.
Judge Engoron reportedly was considering imposing sanctions against three law firms representing Trump. He warned on Friday that he's considering sanctions against the lawyers representing Donald Trump and the Trump Organization in a $250 million lawsuit against the family real estate company — blasting their filing as "frivolous."
On Wednesday, Manhattan Supreme Court Justice Engoron emailed a warning to Trump's lawyers about their legal arguments that the court had "previously rejected," according to court papers. They seemed to have ignored the warning. The judge, however, decided against it, writing in his decision…
"In its discretion, this Court will not impose sanctions, which the Court believes are unnecessary, having made its point."
Meanwhile, a federal judge Thursday sanctioned attorneys for former President Donald Trump to pay $50,000 as a penalty for advancing a "frivolous" lawsuit against a raft of Trump's political enemies, including Hillary Clinton and the Democratic National Committee.
Judge Donald Middlebrooks' scathing order in Florida federal court suggested Trump's lawyers had undermined the rule of law by pushing a political narrative in court "without factual basis or any cognizable legal theory."
The lawsuit by James, seeking a judgment of $250 million, alleges that the Trump family committed civil fraud by manipulating the value of their assets in the Trump Organization to avoid taxes.
A recent separate criminal case alleging the same targeted the Trump Organization directly, along with longtime Trump CFO Allen Weisselberg, which resulted in a conviction on 17 counts of tax evasion.
The Conviction of the Trump Org. Could Set Up NYAG Letitia James to Request a Receiver to Replace the Court Appointed Observer
The conviction of Trump's organization on 17 charges of tax fraud in a case brought by the district attorney in Manhattan is a significant rejection of the former president's company's financial practices.
The conviction is a validation for New York prosecutors, who have spent three years investigating the former president and his businesses.
As punishment, the Trump Organization could be fined up to $1.6 million — a relatively small amount for a company of its size, though the conviction might make some of its future deals more complicated.
While Trump himself was not on trial, prosecutors alleged he "knew exactly what was going on," though he and the company's lawyers have denied that.
Proving that the Trump Org violated 17 specific felonies could go a long way to persuading Manhattan Supreme Court Justice Arthur Engoron to dismiss the case observer and put a court-appointed receiver in charge of the Trump Org.
As a result of the most recent ruling made by Justice Engoron, New York Attorney General James is now in a position to seek the appointment of a receiver. The appointment of a receiver would require Justice Arthur Engoron to hold that the likelihood of NY State winning its tax fraud case against Trump is most likely given the evidence he has seen. This would have a catastrophic impact on Trump's business, and he would essentially lose all authority over his company. Appointing a receiver would also put Trump and his children in a position to ask the court for permission to utilize cash from the Trump Organization to pay for their legal representation, which might set a cap on the amount of money that is paid out.