NEW YORK — Former President Donald Trump and his adult children on Monday indicated they will appeal a judge’s decision to appoint a monitor to watch over their family real estate business.
The Trumps’ notice of appeal to the Appellate Division, First Department, comes days after Manhattan Supreme Court Judge Arthur Engoron ruled in favor of New York State Attorney General Leticia James in her motion seeking to put guardrails on the Trump Organization’s business dealings.
James’ office is suing Trump’s company, its owners and senior executives for $250 million in a sweeping civil lawsuit alleging widespread fraud.
The suit filed in September, which arose from a three-year investigation, accuses Trump Organization execs of habitually lying to banks, lenders and tax authorities about the value of assets like skyscrapers and golf courses to reap financial rewards.
The fraud allegedly extended to Trump’s net worth, which James says the former president exaggerated by “billions.” In its request for a watchdog, the AG’s office accused the company of continuing to employ fraudulent business tactics since the lawsuit’s filing.
Engoron has asked lawyers for the Trumps and the AG to provide him a list of possible candidates to babysit the company by Nov. 10. His order prohibits the Trumps from altering the company’s corporate structure or transferring assets out of state barring court approval, among other restrictions.
Engoron’s decision noted the likeliness of James’ lawsuit succeeding on its merits. He said Trump’s lawyers hadn’t submitted “an iota of evidence” rebutting the AG’s “comprehensive demonstration of persistent fraud” at the company.
Trump, who has condemned the litigation in general terms by describing it as part of a Democrat-led “witch hunt,” has sought in vain to have Engoron taken off the case. His lawyers have described the allegations outlined in the lawsuit as standard practice in the real estate industry.
The one-term president, who has strongly hinted at a second run for the White House, filed suit against James last week in Florida.
The complaint closely mirrors a dismissed one he previously filed in New York and seeks to stop the AG from exercising oversight on the Donald J. Trump Revocable Trust.
James’ case runs parallel to a criminal one brought by the Manhattan district attorney currently on trial. Proceedings were temporarily adjourned last week after the first witness, company controller Jeff McConney, tested positive for COVID-19 during his testimony.
———
