A New York judge has ordered the cancellation of business certificates for firms owned by former President Donald Trump and others associated with the Trump Organization. This ruling came as part of a pretrial decision in a civil fraud trial, which determined that Trump had submitted fraudulent valuations for assets to secure loans and insurance. The judge cited false square footage valuations for Trump’s Fifth Avenue apartment as one example of this misconduct. The cancellation of these business certificates raises uncertainty about the future of Trump’s private sector empire and could potentially impact iconic Trump properties such as Trump Tower and Trump National Golf Club.
The affected businesses include those controlled or owned by Donald Trump, his sons Donald Trump Jr. and Eric Trump, as well as former Trump Organization officials. This could result in the closure of these entities and the potential sale of their assets, which make up a significant portion of the Trump Organization’s holdings. However, the ruling does not apply to the Trump Organization as a whole, meaning its entities outside of New York could still operate. The parties involved in the lawsuit must recommend potential receivers to manage the dissolution of these businesses within 10 days of the ruling.
There are still unanswered questions about how this order will be carried out. Trump’s attorney requested clarification on which of Trump’s numerous business entities would be covered by the ruling, but the judge did not provide an immediate answer. The outcome of these deliberations will determine the consequences for the parent company, the Trump Organization, and its global portfolio of businesses. The trial set to begin next week will also determine the potential financial penalty for Trump, which could be in the hundreds of millions of dollars. Additionally, the decision could prevent Trump from making real estate acquisitions and applying for loans in New York.
