Explainer: What does New York fraud ruling mean for Donald Trump's business empire?

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The fate of Donald Trump’s business empire hangs in the balance after a New York judge stripped control of key properties from the former U.S. president as punishment for his “repeated and persistent fraud” over their valuations.

Here's a look at the ruling and its implications for Trump, the frontrunner for the 2024 Republican presidential nomination.Democratic New York Attorney General Letitia James filed a civil lawsuit against Trump, his adult sons and nearly a dozen business entities in September 2022, alleging they inflated the value of their assets by billions of dollars to secure more favorable loan and insurance terms.

The order did not provide a timeline for the cancellations. Engoron asked the parties to recommend potential receivers within the next 30 days.WHAT DOES THE RULING MEAN FOR TRUMP’S BUSINESS? The ruling covers 10 Trump entities but includes pillars of Trump's empire, including his commercial property at 40 Wall Street in Manhattan, golf resort in Scotland and Mar-a-Lago resort in Palm Beach, Florida.

Engoron declined to answer whether the assets would be sold or simply managed by an independent receiver when asked by one of Trump’s lawyersTrump’s lawyers have said they will appeal the decision, which they described as an “outrageous” attempt to “nationalize one of the most successful corporate empires in the United States and seize control of private property.”

 

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