Sunday, July 5, 2026

Trump Suffers “Major Blow” in NY AG Case, Judge Finds Fraud And Lying About Value of Company, Could Lose Trump Organization

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NY Attorney General Letitia James has won her case against Donald Trump.

Judge Arthur Engoron has ruled that Trump LIED in his fraud case lied about his company’s value for at least a decade by hundreds of millions of dollars.

Engoron also granted James’s request to impose sanctions on Trump, his co-defendants and their attorneys for repeatedly filing already-rejected legal arguments.

James is suing Trump on behalf of New York State for $250 million.

It’s highly unusual to lose a case before it begins, but that’s what has happened. Now Trump’s trial will be quite short since we already know the outcome. James is trying to bar the Trumps from serving as head of New York-licensed businesses or doing business deals and taking out loans for five years.

New York Times: “Justice Engoron’s decision narrows the issues that will be heard, effectively deciding that the trial was not necessary to find that Mr. Trump was liable and that the core of Ms. James’s case was valid. It represents a major blow to Mr. Trump, whose lawyers had sought to persuade the judge to throw out many of the claims against the former president.”

He added: “That is a fantasy world, not the real world,” he added.

Here’s a summary of what’s going on.

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Roger Friedman
Roger Friedman
Roger Friedman is the founder and editor-in-chief of Showbiz411. He wrote the FOX411 column on FoxNews.com from 1999 to 2009, where he covered Michael Jackson, and previously wrote the "Intelligencer" column at New York magazine in the mid-1990s, where he covered the O.J. Simpson trial. He also edited Fame magazine. His bylines have appeared in The New York Times, The Washington Post, the New York Daily News, the New York Post, Vogue, Details, and the Miami Herald. He is a voting member of the Critics Choice Awards (Film and Television branches), and his movie reviews are tracked by Rotten Tomatoes. With D.A. Pennebaker and Chris Hegedus, he co-produced the 2002 documentary "Only the Strong Survive," which screened at Directors' Fortnight at the Cannes Film Festival.

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