Trump’s Real Estate Business Faces Potential Dissolution

The Case

Within days, Donald Trump could potentially have his sprawling real estate business empire ordered
“dissolved” for repeated misrepresentations on financial statements to lenders, adding him to a short list of
scam marketers, con artists and others who have been hit with the ultimate punishment for violating New York’s
powerful anti-fraud law.

A Rare Penalty

An Associated Press analysis of nearly 70 years of civil cases under the law showed that such a penalty has
only been imposed a dozen previous times, and Trump’s case stands apart in a significant way: It’s the only
big business found that was threatened with a shutdown without a showing of obvious victims and major losses.

What the Experts Say

Lawyers for the state in Trump’s monthslong civil trial have argued that the principles of fair play in
business alone are enough to justify a harsh penalty. Even so, some legal experts worry that if the judge
goes out of his way to punish the former president with the worst-case scenario of liquidating his
businesses, it could set a dangerous precedent for future cases.

“This is basically a death penalty for a business,” said Columbia University law professor Eric Talley. “Is
he getting his just desserts because of the fraud, or because people don’t like him?”

Past Dissolutions

AP’s review of nearly 150 reported cases since New York passed its “repeated fraud” statute in 1956 showed
that victim losses were usually key factors in the decision to dissolve a business. However, Trump’s case does
not have a clear list of victims or major losses, making it an unprecedented situation.

A Potential Compromise

New York Attorney General Letitia James has asked that Trump be banned from doing business in New York and
pay around $370 million. However, she has not specifically requested a property sale.

In a potential compromise, James has suggested appointing an independent monitor to oversee Trump’s
operations for five years. After the monitorship, the court could then decide whether to revoke his business
certificates and potentially put him out of business.

The Ruling

State Supreme Court Judge Arthur Engoron, who presided over the case, is expected to issue a final ruling
within the next couple of weeks. The ruling is expected to decide on the cash penalty, business ban, and
clarify the “dissolution” order.

Impact on the Industry

The potential dissolution of Trump’s real estate business raises concerns about the significant impact it
could have on the industry. Legal experts fear that excessive punishment in this case could pave the way for
easier quashing of companies in the future, setting a concerning precedent.

Conclusion

Trump’s case is a rare instance of a big business facing potential dissolution without clear victims or major
losses. With the final ruling nearing, the implications for Trump and the business community at large are
significant.