The future of the private sector empire on which former President Donald Trump and others connected to the Trump Organization have built their reputations for economic prowess is in doubt after a New York judge ordered the cancellation of the business certificates for enterprises in the state they own.
The instruction came as part of a pretrial decision in a $250 million civil fraud lawsuit that concluded Trump had provided "fraudulent valuations" for assets later utilized by himself, his eldest sons, and his company to gain better loan and insurance terms.
In addition to other errors in assessment, Judge Arthur Engoron criticized the "false and misleading square footage" of Trump's Fifth Avenue property.
On X, formerly known as Twitter, Eric Trump, who oversees daily operations for the Trump Organization, replied, "Today, I lost all faith in the New York legal system. Never before have I seen such hatred toward one person by a judge."
According to Trump's lawyer Alina Habba, Trump intends to appeal the judge's "fundamentally flawed" ruling immediately. Trump might also ask for an immediate trial suspension.
According to Engoron, the trial is scheduled to continue the following week because the court must still rule on six other claims made by Attorney General Letitia James as well as the extent of the potential punishment.
The entire breadth of the injunction is still unknown, but it could have enormous effects on the Trump Organization and its underlying assets.
The decision effectively barred New York-based businesses controlled by prominent members of the Trump Organization from conducting business in the state by removing their company certificates.
According to Engoron, the decision to revoke business certificates affects any company controlled or owned by Trump, his sons Donald, Jr. and Eric, and former employees of the Trump Organization Allen Weisselberg and Jeffrey McConney.
That would spell the end of operations for renowned Trump properties, including the Midtown Manhattan-based Trump Tower, the Westchester County-based Trump National Golf Club, and the 927-foot-tall Wall Street office building known as The Trump Building.
Together, the companies provide jobs for hundreds of individuals and account for a sizeable chunk of the holdings of the Trump Organization.
However, the whole Trump Organization is exempt from the order. Outside of New York, the company's entities might continue to function.
What do you think this ruling means for the future of the Trump Organization and its assets?
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