Donald Trump at business fraud trial in New York
Donald Trump's testimony in his New York fraud trial has been so bombastic, scattered, and stunningly disrespectful to the court (even by Trump's standards) that many Americans probably have overlooked what really is at stake. With that as background, Axios' Dan Primack has provided a helpful, and important, reminder. Under the headline "What Trump stands to lose in his New York civil fraud trial," Primack writes:
Former President Donald Trump is at risk of losing the New York real-estate empire that the rest of his career was built on.
Forcibly dismantling Trump's company is so unusual that no one is quite certain how it would play out.
Trump already has been found to have inflated the value of his New York assets, via a partial summary judgment. The case now is in its penalty phase — and Trump testified (Monday, 11/7/23), drawing a rebuke from the judge after veering off topic in his answers.
At the heart of the matter is the fate of documents that allow Trump's businesses to function. Take those documents away, and Trump's status as a business titan likely goes with them. No wonder Trump, who already appears emotionally fragile, seemingly has been near a breaking point in recent days. Writes Primack:
In an earlier phase of the trial, the judge granted New York Attorney General Letitia James' request to cancel state business certificates that effectively allow many of Trump's properties to operate.
Trump successfully appealed that part of the lower court's ruling, but the possibility could come back once the trial concludes.
How might that process play out? Primack provides insights:
If the business certificates were canceled, the relevant assets — which include Trump Tower, Trump Park Avenue, 40 Wall Street, and Trump National Golf Course Hudson Valley — would be put under the control of a court-appointed receiver, who operates much like the executor of an estate.
* The receiver would continue to manage the properties, but also could be allowed by the court to sell some — particularly if cash was needed to pay off legal penalties or creditors.
* Trump, who views himself as a consummate dealmaker, wouldn't be at the negotiating table.
The certificates are not the only possible target for prosecutors. Writes Primack:
Even if he's able to keep his business certificates, there are other options on the table that could weaken his real-estate empire. Prosecutors have asked for:
* A five-year ban on Trump or the Trump Organization entering into commercial real-estate transactions in New York.
* A five-year ban on Trump or the Trump Organization applying for loans from any financial institutions chartered by or registered in New York.
* Permanent disbarment of Trump and his three oldest children from serving as officers or directors in a business headquartered, registered and/or licensed in New York.
The bottom line: The legal proceedings could forever alter Trump's business legacy — the same legacy he parlayed into his political career.
Could Trump's fragile psyche handle such a crushing outcome? The trial is expected to end in late December, so we might know the answer to that question in little more than a month.
