A New York appellate court on Wednesday ruled that former President Donald Trump cannot delay the appointment of an independent monitor to oversee his real estate empire, which is facing a civil fraud lawsuit by the New York attorney general, Letitia James.
Angela Mazzarelli, an associate justice on the Appellate Division, a mid-level state appeals court, denied Trump’s request for a stay, or a halt, of Manhattan-based Justice Arthur Engoron’s Nov. 3 order requiring an independent monitor, a third-party expert, for the Trump Organization while it pursues an appeal.
“This court will appoint an independent monitor, to be paid by defendants, for the purpose of ensuring compliance with this order,” Engoron wrote. “If the monitor reasonably determines that defendants have violated this order, the monitor shall immediately report that matter to [Office of the Attorney General of the State of New York], defendants, and this Court.”
Engoron also barred the Trump Organization from selling, transferring, or disposing of any non-cash assets without providing 14 days of written notice to James’ office and to the court.
Lawyers for Trump this week challenged the decision.
Allegations of Fraud
Mazzarelli said on Wednesday a full panel of appellate judges would reconsider the matter at a hearing on Nov. 28 but that in the meantime, Engoron is able to freely appoint a monitor to keep tabs on Trump’s real estate empire, restrict his company’s ability to freely make deals, sell assets and change its corporate structure.Specifically, James claimed that over a 10 years-period from 2011 through 2021, Trump and the other defendants had “engaged in numerous acts of fraud and misrepresentation in the preparation of Mr. Trump’s annual statements of financial condition,” which included deceiving insurers, tax officials, and lenders by allegedly inflating the value of his properties.
The lawsuit came after a three-year investigation by James’ office which she said involved “more than 65 witnesses and review of millions of pages of documents produced by Defendants and others.”
“These acts of fraud and misrepresentation were similar in nature, were committed by upper management at the Trump Organization as part of a common endeavor for each annual Statement, and were approved at the highest levels of the Trump Organization—including by Mr. Trump himself,” the lawsuit states.
Allen Weisselberg, the former chief financial officer for the Trump Organization, and Jeff McConney, another executive, also were named in the lawsuit.
Weisselberg in August pleaded guilty to tax fraud charges and agreed to testify against Trump’s real estate company in an upcoming trial as part of a plea deal.
James also wants the Trump Organization to be blocked from engaging in real estate acquisitions in the state for five years and for Trump and his children to be barred from serving as high-level executives at any company in New York.
Lawsuit Is ‘Politically Motivated’
Trump, who has hinted that he plans to run for president in 2024, has denied wrongdoing. His lawyer, Alina Habba, has claimed James’ lawsuit is politically motivated.The former president’s attorneys had argued that Engoron overstepped his bounds in the November order and that his decision to appoint a monitor for the duration of James’ civil case placed “immediate and unlawful prejudgment restraint” on Trump’s nearly $5 billion in assets.
“It is Communism come to our shores,” he continued. “Today’s ridiculous ruling by a politically-motivated, hand-picked judge makes it even more vital for courts in both New York and Florida to do the right thing and stop this inquisition. We have to fight back against radical tyranny and save our Country!”
Engoron gave both sides a Nov. 10 deadline to recommend three candidates for the role of an independent monitor, after which, both sides have five days to comment on each other’s candidates before he makes his choice.
The Epoch Times has contacted Trump’s lawyer for comment.
