Judge orders Trump to appoint independent monitor in New York attorney general’s $250M fraud case

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Trials & Litigation Judge orders Trump to appoint independent monitor in New York attorney general’s $250M fraud case

By Julianne Hill

November 7, 2022, 8:58 am CST

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Former President Donald Trump in August 2019. Photo from Shutterstock.

The Trump Organization was ordered by a New York judge to appoint an independent monitor, a win for the New York attorney general in her $250 million fraud lawsuit against former President Donald Trump, his companies and his officers.

On Thursday, Justice Arthur F. Engoron of the New York County Supreme Court granted New York Attorney General Letitia James’ motion a preliminary injunction.

The order aims “to ensure that defendants do not dissipate their assets or transfer them out of this jurisdiction.” It states that the Trump defendants’ “demonstrated propensity to engage in persistent fraud, failure to grant such an injunction could result in extreme prejudice to the people of New York.”

The defendants are prohibited from selling noncash assets listed on Trump’s 2021 statement of financial condition “without first providing 14 days written notice” to the attorney general and the court. All the defendants—including Trump, the Trump Organization companies, Trump’s three adult children and longtime financial officers Allen Weisselberg and Jeffrey McConney—are impacted, as well as “all other persons or entities acting in concert with them,” according to the order.

“This court will appoint an independent monitor, to be paid by defendants, for the purpose of ensuring compliance with this order,” Engoron wrote.

“Today’s decision will ensure that Donald Trump and his companies cannot continue the extensive fraud that we uncovered and will require the appointment of an independent monitor to oversee compliance at the Trump Organization,” said James in a Nov. 3 press release.

During arguments prior to the written ruling, attorneys for Trump, the Trump Organization, Weisselberg and McConney stated that James was going too far and alleged that there was a lack of harm to the public, Law360 reports.

“There is zero public interest here, respectfully,” said Trump counsel Christopher Kise. “These corporate titans have unlimited resources.”

The order follows a motion last month for a preliminary injunction filed by the James’ office to stop Trump and his organization from engaging in the fraudulent and illegal business activity in New York by revoking their business certificates, banning them from corporate officer roles and halting acquisitions and loans for five years—as well as $250 million in alleged fraudulent gains. This is detailed in the September 2022 pending suit.

See also:

ABAJournal.com: “Trump inflated net worth by billions to get favorable loans, obtaining $250M in benefits, NY attorney general says”

ABAJournal.com: “New York attorney general asks court to hold Trump in civil contempt, fine him $10K per day”

ABAJournal.com: “Weekly Briefs: Trump business misrepresented assets, New York AG says; judge apologizes for weed scolding”

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