Those never-Trumpers and diehard Democrats who have been involved in a number of campaigns, political, civil and criminal, against President Donald Trump may be rejoicing at a lone New York judge’s ruling that decided on Trump’s “fraud” guilt and penalties of hundreds of millions of dollars without any jury involved.
But New York businesses are now running scared, and the already-existing exodus of companies from there could accelerate.
That’s the opinion of Jonathan Turley, the J.B. and Maurice C. Shapiro Professor of Public Interest Law at George Washington University Law School.
He’s not only testified as a constitutional expert before Congress, he’s represented members in court.
The recent judgment was delivered by Judge Arthur Engoron, who ruled on his own that Trump’s “fraud” required a fine of some $350 million.
It was a case without victims, without loss, without unpaid loans and confirmation that those who engaged in business deals with Trump wanted to do so again.
But the verdict is bad news, very bad, for business operators there.
“Many businesses are likely wondering ‘but for the grace of God go I,'” Turley wrote. “Undervaluing or overvaluing property is a common practice, particularly in real estate. That is why representations, like the one made by the Trump Corporation, come with a warning that estimates are their own and that the banks need to make their assessments.”
Engoron ruled that Trump had overvalued his properties, and then wildly said, in a statement that dropped jaws in the real estate community, that Trump’s Mar-a-Lago residence in Florida was worth less than $20 million. Real estate experts confirmed without hesitation that it would be worth closer to $500 million, but Engoron stuck to his own assessment of Florida real estate.
“Faced with high crime and high taxes, the spectacle in Manhattan is only likely to accelerate the exodus of businesses and high-earners from the city,” Turley warned. “That prospect has already alarmed Gov. Kathy Hochul who declared ‘business people have nothing to worry about, because they’re very different than Donald Trump and his behavior.’
“That sounds a lot like ‘you are fine so long as you are not Trump.’ Yet, that is not reassuring to businesses who want a legal system that is based on something other than selective and arbitrary enforcement. Attorney General Letitia James campaigned on bagging Trump without even bothering to name the offense,” he pointed out.
“The line between doing business and a public execution appears to be the dubious discretion of Letitia James,” he warned. “That is not the type of assurance that most businesses would accept in risking billions in investment. Despite the high taxes and falling services in New York, the city remained a draw for business as a commercial and legal center. The experience and objectivity of courts in dealing with business disputes was a selling point for companies.”
But, he said, “That has been shattered by the James campaign and the Engoron ruling. Telling business to just ‘don’t be like Trump’ is more menacing than consoling. Letitia James is now the face of New York corporate law — it is the ‘face that launched a thousand ships’ . . . toward Florida. Businesses can get lower taxes, lower crime, better schools, and a better regulatory environment in virtually any other state. Fewer are likely to want to come for the shows, but stay for the disgorgement.”
He warned, “Shark Tank’s Kevin O’Leary said Monday that he would ‘never’ invest in New York after this absurd judgment. Creating an ad hoc business code for Trump undermines the city’s reputation as a premier jurisdiction for corporate and tax law. If the rate of exit increases, it will impact not just employees working for these companies (like the Trump companies) but the vast network of supporting businesses, including law firms.”
He said, “As New York politicians campaigning on ‘eat the rich’ platforms, the confiscatory Trump judgment leaves many in the city wondering if they could be the next course.”
An appeal is expected of the ruling from Engoron, who repeatedly censored Trump’s free speech about the case, but the costs of those procedures in New York also is exorbitantly high, Turley noted.
He noted about the case itself: “Many of us have been critical of the ruling of Manhattan Supreme Court Justice Arthur Engoron who imposed the astronomical fine despite finding that Trump’s ‘victims’ not only did not lose a single dollar but made handsome profits. Indeed, these banks testified that they wanted to continue to do business with Trump as a ‘whale’ client, but Engoron is now barring them from doing so.”
He did point out that Engoron’s ruling, “was met with a level of unrestrained celebration by many in New York that bordered on the indecent. Attorney General Letitia James declared not only that Trump would be barred from doing business in New York for three years, but that the damages would come to roughly $460 million once interest was included.”
He noted, “That makes the damages against Trump greater than the gross national product of some countries, including Micronesia. Yet the court admitted that not a single dollar was lost by the banks from these dealings. Indeed, witnesses testified that they wanted to do more business with Trump…”
He explained, “Undervaluing and overvaluing property is a longstanding practice in New York real estate. The forms submitted by the Trump organization cautioned the banks to do their own estimates and the loans were paid in full and on time. Yet, the New York law used by James is a curiosity because it does not actually require a victim.”
Turley said Engoron’s decision “is grotesque and should shock the conscience of any judge on appeal. Even if the Democrat-appointed judges on the New York Court of Appeals were to ignore the obvious inequity and unfairness, the United States Supreme Court could intervene.”
But he said it may bring results that not everyone likes.
“The impact on New York business is likely to be dire. New York is already viewed as a hostile business environment, with the top end of its tax base literally heading south as taxes and crime rises. This draconian award is only going to deepen concerns over the arbitrary application of the law.”
via wnd
