Donald Trump's business empire in peril as civil fraud trial opens in New York

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(Reuters) -Donald Trump and his family business are set to stand trial in New York on Monday in a civil fraud case that could deal a major blow to the former U.S. president’s real estate empire.

Trump, the front-runner for the 2024 Republican presidential nomination, is accused by Democratic New York Attorney General Letitia James of inflating the value of his assets by billions of dollars to secure better loan and insurance terms.

The trial comes a week after the judge presiding over the case found Trump liable for fraud and will largely concern the penalties he must face. "A discrepancy of this order of magnitude, by a real estate developer sizing up his own living space of decades, can only be considered fraud," he said.Engoron canceled business certificates for companies controlling pillars of Trump’s empire - including Trump Tower and his golf clubs in New York - and said he would appoint receivers to oversee their dissolution.

James alleges Trump reaped hundreds of millions of dollars in ill-gotten savings by"grossly" inflating the values of his assets to get better deals from lenders and insurers.

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