Donald Trump committed fraud for years and massively exaggerated net worth to secure finance, court rules

26 September 2023, 21:42 | Updated: 26 September 2023, 22:01

Donald Trump committed fraud for years, a judge has ruled
Donald Trump committed fraud for years, a judge has ruled. Picture: Alamy

By Will Taylor

Donald Trump committed fraud and massively exaggerated his net worth by up to $3.6bn in deals used to secure financing, a court has ruled.

Listen to this article

Loading audio...

A judge ruled the former president and his business deceived banks and insurers as he overstated his assets and net worth as they sought money.

It comes after New York's attorney general Letitia James brought a lawsuit against the mogul-turned-politician.

Judge Arthur Engoron made his decision days before the start of a non-jury trial on that lawsuit.

He found Trump, his company and important executives did not merely brag about his wealth, but lied about it on financial statements.

Read more: 'I’m going to buy one': Donald Trump admires gun with his face on

This meant they could secure favourable loan terms and lower insurance premiums, the judge said.

Such tactics violated the law, he found. Trump's claim that a disclaimer on the statements meant he was not involved in any wrongdoing were rejected.

While Trump is not facing a criminal trial in this case, the civil action could hamper his business activities in the state of New York.

James hopes to secure penalties worth $250m and a ban on him doing any business there.

Read more: 'Green New Hoax': Donald Trump praises Rishi Sunak's Net Zero U-turn as he slams 'ridiculous climate mandates'

The state - and New York City - was where he made his name as he built up his real estate empire.

Six other claims in the lawsuit remain unresolved.

The non-jury trial will begin on October 2, where they will be decided on. Any punishments would be issued after that.

Trump's lawyers, meanwhile, argue James could not file the suit because there is no evidence of harm to the public and that a statute of limitations prevents many claims against him from being filed.

More Latest News

See more More Latest News

Germany's

NATO at risk of Russia attack in next four years, warns German defence chief

Boulder, Colorado, USA. 1st June, 2025. Police investigate the scene of an 'act of terror' in and talk with witnesses on the Pearl Street Mall in Boulder, Colorado, on June 1, 2025. (Credit Image: © Colorado Sun via ZUMA Press Wire)

'Targeted terror attack' in Colorado as petrol bombs reportedly thrown at pro-Israel group, several injured

One young user of single-use vapes told me the ban doesn't "change anything".

'It doesn't change anything', say vape users as disposable vape ban comes into force to deter use among young people

Emergency services near to the scene at Fairgreen Shopping Centre, Carlow, where a incident has taken place. Picture date: Sunday June 1, 2025.

Gunman opens fire at shopping centre in Ireland as man dies from 'self-inflicted' injuries and child injured

London, England. 24th May 2025. Pixie Lott wears a tshirt gifted by a fan as she presents new single 'Somebody's daughter' to the Foodie Festival audience. Cristina Massei/Alamy Live News

Pixie Lott reveals she's pregnant with second child on stage at festival

The Ukrainian leader celebrated the attack in Russia.

'Brilliant result': Zelenskyy celebrates Ukraine's attack on 40 'enemy bombers' in Russia that caused '$7bn' damage

The Royal Terrace Pier Gravesend Kent UK

Man describes rescuing 'screaming' boy from Thames after body recovered in search for missing girl

Yates on the podium, wearing the pink jersey of the race overall leader, celebrates after winning the 21th stage of the Giro d'Italia 2025. Sport - cycling. (Photo by Fabio Ferrari/LaPresse) Credit: LaPresse/Alamy Live News

Britain's Simon Yates wins first Giro d'Italia title in Rome

IDF Spokesperson BG Effie Defrin features in a video posted to X, captioned: "I visited the area of one of the GHF humanitarian aid distribution centers to set the record straight."

IDF denies responsibility after reports of 31 dead in Israeli attack near aid site

Climate activist Greta Thunberg with other activists from a human rights organization meets with journalists in Catania, Italy, Sunday, June 1, 2025, ahead of their departure for the Mideast.

'We have to keep trying': Greta Thunberg sets sail on journey to bring aid relief to Gaza as activist is joined by 11 others

Wiltshire Police confirmed nine people had sustained injuries and were taken to hospital.

Boat on River Thames 'explodes' with nine people injured 'including baby' and transferred to hospital after blaze

British surgeon Dr. Victoria Rose describes the catastrophic scene at Nasser Medical Complex

'Absolute carnage': British doctor describes horror in Gaza hospital after Israel 'opens fire' on aid centre

Sam was driving on the A34 near Manchester on Monday when his car suddenly left the road.

Race Across the World contestant Sam Gardiner, 24, dies in car crash as family pay tribute to his 'joy and energy'

Russia's Ministry of Defence acknowledged the strikes on airfields across five regions earlier today.

Ukraine targets more than 40 'enemy bombers' deep inside Russia with drones 'hidden' in special containers, source says

Firefighters with breathing apparatus and a ladder truck work at the Marienkrankenhaus hospital in Hamburg's Hohenfelde district of Hamburg.

Three dead, more than thirty-five injured in fire in geriatric ward of German hospital

An investigation has found trending mental health TikTok videos are spreading misinformation about mental health

'Feeling anxious? Eat an orange in the shower': Over half of top 100 Tik Tok mental health advice videos contain misinformation