US court rejects Donald Trump's bid to dismiss New York fraud case, tosses case against Ivanka
2 min read 28 Jun 2023, 06:35 AM ISTThe case accuses Trump of lying about asset values and seeks damages of at least $250 million. Trump denies wrongdoing and dismisses the case as a Democratic witch hunt.
PremiumA New York appeals court denied Donald Trump's attempt to dismiss a lawsuit by the state attorney general accusing him and his business of fraud. However, it dismissed all claims against his daughter Ivanka Trump and said the remaining case may be limited further.
Attorney General Letitia James filed a civil case accusing Donald Trump of lying about asset values from 2011 to 2021. The alleged falsehoods involve his Mar-a-Lago estate, Trump Tower penthouse, and net worth, aiming to secure favorable terms from lenders and insurers. Seeking damages of at least $250 million, the lawsuit also aims to prevent the Trumps from operating businesses in New York.
Trump, the Republican 2024 presidential front-runner, denies wrongdoing and dismisses the case, along with two unrelated criminal indictments, as part of a Democratic “witch hunt."
The Appellate Division in Manhattan, with a 5-0 decision, affirmed that the state law empowers James to investigate repeated or persistent fraud or illegality. However, due to statutes of limitations, James cannot sue for claims arising before July 13, 2014, or February 6, 2016, depending on the defendant.
Furthermore, all claims against Ivanka Trump were dismissed as they were filed too late, and she was no longer associated with the Trump Organization during the relevant period.
October trial
The court returned the case to Justice Arthur Engoron of the state Supreme Court in Manhattan to determine which parts could proceed.
An October 2 trial is scheduled. Trump was questioned under oath for the case in April.
"There is a mountain of evidence that shows Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for significant economic gain," a spokeswoman for James said. "This decision allows us to hold him accountable for that fraud, and we intend to do so."
(With agency inputs)
