The Fraud Trial Begins Monday & Trump's Businesses are Doomed
With the partial summary judgement now in, the core question has been answered. Yes, the Court found, Trump et al are liable for the massive fraud they repeatedly committed for years and years.
Accordingly, the business certificates for Trump's businesses shall be canceled and those businesses shall be put in receivership (out of Trump's control) and dissolved. This means the companies will cease to exist.
In a word, Donald Trump's businesses have been sentenced to death.
The judge
"... cancelled all of the business licenses for the Trump Organization and its 500 or so subsidiary companies and partnerships after finding that Trump used them to, along with his older two sons, commit fraud." (
Source)
The businesses will be dissolved in the same way a bankrupt company is dissolved, or assets seized from a drug lord are dissolved. In this case, the Trump companies will be required to pay all their debts and liabilities, including any realized tax liabilities when the business assets are sold off. After that, the remaining proceeds (if any) will be distributed to the creditors and shareholders (stakeholders). When the process is completed, certificates of dissolution will be filed and the business entities will be no more.
Trump has claimed for years that his businesses are worth vast sums. We're going to find out exactly how much (or how little) they are worth because liquidation requires
all assets AND liabilities to be accounted for.
It will likely take years for these companies to be dissolved, but dissolved they will be. Trump will lose control of them very soon. The Court has given the parties 10 days to recommend up to three receivers each. I presume the judge will quickly put one or more of them on the job. That's the moment when Trump loses control of the companies in question; when company control is placed in the receivers' hands.
Does this mean Trump Tower will no longer be owned and operated by the Trump Organization and Trump's name will come off the building? I'm not a legal expert and I could be wrong about this, but yes, I think that is exactly what this means. It will be the same for all other Trump assets targeted by the order, including the Trump Organization itself. These businesses are being dissolved. They will exist no more. There will be nothing left to place the Trump name on.
With the above items resolved by partial summary judgement, several issues remain to be decided at trial. The principle issue is how much Trump will be fined. Another issue is whether or not Trump et al will be banned from doing future business in New York.
That trial begins next week on Monday, Oct 2, 2023. Arguments will begin immediately because there will be no jury selection. This is a bench trial, not a jury trial. That means the judge alone will hear and rule on the case without a jury. It is a bench trial because both the defendants (Trump et al) and the prosecutor (NY AG James), asked for and received a bench trial. This trial is expected to end sometime in December.
Trump is certain to appeal the judge's partial summary judgement. In the opinion of several legal experts weighing in on the matter, the likelihood of the ruling being reversed on appeal is zero or near zero. Trump has already appealed a number of rulings by this judge in this case. The appeals court upheld the judge's rulings every time. This is a done deal. The Trump companies in question will be dissolved.
Ivanka Trump made her own appeal in this case. For her, the appeals court overturned Judge Engoron's ruling and Ivanka was dismissed from the case on statute of limitations grounds. No such relief was provided to any other defendant. The ruling that applies to them is the one Judge Engoron issued yesterday, and they will all begin trial on Monday.
I'm sure Trump's supporters will say things like this is unconstitutional, you can't just take a man's businesses away from him. It is illegal to do this.
In fact, it is constitutional, and yes a court can take a man's businesses away from him, and it is legal to do. The illegal part happened when Trump repeatedly used his companies to commit massive fraud. The disgorgement of the illegal profits and dissolution of those companies are the legal consequences now catching up with Trump.
Karma. Justice. The accountability train has arrived. The chickens have come home to roost. However you choose to say it, Trump's New York businesses are done, and Trump is a New York businessman no more.
To me personally, this is wonderfully satisfying. I have been waiting for a very long time to see Trump businesses held to an honest accounting. That day has come.
