Former President Donald Trump and his co-defendants have a deadline of October 26 to provide a New York state court with potential receivers for his New York businesses. This development came through a supplemental order signed by Judge Arthur F. Engoron, who is overseeing Trump’s civil fraud trial.
On September 26, Judge Engoron ruled in favor of New York Attorney General Letitia James, finding Trump and his adult sons, Donald Trump Jr. and Eric Trump, along with the Trump Organization, liable for fraud. The judge stated that there was “conclusive evidence” that Trump had inflated the value of his assets by as much as $2.2 billion, including properties like Mar-a-Lago and his Trump Tower penthouse.
Trump, who maintains his innocence, criticized Judge Engoron and has appealed the refusal to dismiss the civil lawsuit entirely. His lawyers have contested every aspect of the judge’s September 26 ruling.
The former president has also accused James of pursuing the case to weaken his position in the 2024 presidential election, where he is the frontrunner in the Republican primary, despite facing multiple criminal and federal cases.
As a result of the ruling, Trump is set to lose his business operating license in New York, which will limit his ability to run his real estate company.
However, it’s essential to note that the recent order by Judge Engoron does not mean Trump’s New York businesses will be dismantled immediately on October 26. Instead, it marks the initial step in the process. Trump and his co-defendants must now provide names of potential receivers for the judge’s consideration.
Additionally, Judge Engoron has asked Trump and the other co-defendants to furnish the independent monitor, Hon. Barbara S. Jones, with a list of all entities controlled or beneficially owned by them within seven days from October 4. This is part of a legal requirement related to surrendering companies. For each entity, they must also disclose whether any third party has ownership, partnership, or membership interests.
Barbara S. Jones, a retired federal judge, currently oversees the Trump Organization as a court-appointed monitor. This step aims to ensure transparency and prevent Trump from making transactions that could protect his assets from legal liability.
