A New York judge has ordered the cancellation of business certificates for firms in the state owned by former President Donald Trump and other individuals associated with the Trump Organization. The judge’s directive came as part of a pretrial ruling in a $250 million civil fraud trial, which found that Trump had submitted “fraudulent valuations” for assets to secure better loan and insurance terms. The ruling affects New York-based companies controlled or owned by Trump, his sons, and former Trump Organization officials, potentially endangering iconic properties such as Trump Tower and Trump National Golf Club. Within 10 days, the parties must recommend potential receivers to manage the dissolution of these firms, which could result in their closure and the sale of their assets.
The cancellation of the business certificates has cast doubt on the future of the Trump Organization’s private sector empire. This decision raises questions about the scope of the ruling, including whether it applies to all of Trump’s entities and the potential consequences for the parent company. The trial is set to proceed next week, where the court will determine the remaining causes of action and the financial penalty, which could reach hundreds of millions of dollars. In response to the ruling, Eric Trump expressed his disbelief and loss of faith in the New York legal system, while Trump’s attorney plans to appeal the decision, calling it “fundamentally flawed.” The ultimate outcome of the trial and the subsequent deliberations will have significant implications for the Trump Organization’s business holdings.
The impact of the judge’s order extends to the potential closure of Trump-owned businesses and the sale of their underlying assets. Key figures associated with the Trump Organization, including Trump’s sons and former officials, may face the loss of their control over iconic properties such as Trump Tower and Trump National Golf Club. However, the cancellation of business certificates does not apply to the Trump Organization as a whole, leaving open the possibility of continued operations outside of New York. The parties involved must recommend potential receivers within 10 days to manage the dissolution of these affected firms. The exact consequences and scope of the order remain uncertain as questions about which entities are covered by the ruling are yet to be clarified in court. The trial, scheduled to begin next week, will also determine the potential financial penalty, which could have a significant impact on Trump’s ability to engage in real estate acquisitions and secure loans in New York.