A New York judge has ruled that Donald Trump and his adult sons are responsible for fraud

A New York judge has ruled that Donald Trump and his adult sons are responsible for fraud and has revoked the Trump Organization's business certification. The judge, Arthur Engoron, determined that the Trumps provided false financial statements for approximately a decade.

Judge Engoron issued this ruling just days before the civil case involving the New York Attorney General's office and the former president was scheduled to begin its trial. Engoron granted Attorney General Letitia James' motion for summary judgment, concluding that Trump, his sons, and others were "legally liable for persistent violations" of New York state law. He found that the financial statements provided by the Trumps to lenders and insurers for nearly a decade were false and that they were involved in fraudulent activities repeatedly.

This decision is a significant setback for Trump and a complete rejection of his claims that he did not overstate the values of his golf courses, hotels, and properties such as those at Mar-a-Lago and Seven Springs in financial statements that were frequently used in business transactions.

"Today, a judge ruled in our favor and found that Donald Trump and the Trump Organization engaged in years of financial fraud," stated Letitia James on Tuesday night. "We eagerly anticipate presenting the remainder of our case during the trial."

The Attorney General is seeking $250 million in damages, a prohibition on the Trumps from holding corporate positions in New York businesses, and a five-year ban on the company engaging in business transactions.

The judge also revoked the business certifications of the Trump entities named as defendants in the case, which includes the Trump Organization, and has appointed a receiver to oversee the "dissolution" of these corporate entities. Two New York properties are central to the lawsuit: the commercial tower at 40 Wall Street and the Trump family estate at Seven Springs.

Nevertheless, the full extent of the judge's ruling remains somewhat unclear. Questions persist regarding how the receiver will oversee the dissolution of these properties, whether the ruling will have an impact on properties located outside of New York State, including Mar-a-Lago, and whether the Trumps can transfer their New York-based assets to a new out-of-state company.