Judge agrees to appoint receiver for Trump Organization assets, bars transfer of assets without notice

Judge agrees to appoint receiver for Trump Organization assets, bars transfer of assets without notice

A state judge approved Thursday the New York Attorney General’s request for an order appointing a supervisor to oversee the Trump Organization’s finances, and prohibiting any proposed transfer of significant assets without prior notice to the court, the AG and the supervisor, while the state’s lawsuit against the companies moves forward.

New York Attorney General Letitia James’ office sought a preliminary injunction, saying in a court filing that the company “appears to be taking steps to restructure its operations to avoid” liability and payment of any damages in a massive lawsuit filed by her office in September. The lawsuit alleges a widespread effort by former President Donald Trump and his eponymous company to manipulate property valuations. He is asking for $250 million and the end of the company’s operations in the country.

On the day the suit was filed, the company incorporated a new entity with the state called Trump Organization II LLC. The entity was registered a few days earlier in Delaware. James’ office claims it was possible evidence that the company was planning to move its assets.

“The defendants are ordered to provide the monitor with a full and accurate description of the structure and liquid and illiquid holdings and assets of the Trump Organization, its subsidiaries and all other affiliates, no later than two weeks after the appointment of the monitor,” Judge Arthur F. Engoron wrote in his to rule.

James’ office called the decision a “big win.”

“Courts have ruled time and time again that Donald Trump cannot evade the law for personal gain,” James said in a statement. “Today’s decision will ensure that Donald Trump and his companies cannot continue the extensive fraud we uncovered and will require the appointment of an independent monitor to oversee compliance at the Trump Organization. No amount of lawsuits, stalling tactics or threats will stop our pursuit of justice.”

How does the New York Attorney General’s lawsuit against Trump differ from an investigation?


Trump released a statement saying, “Today’s ridiculous ruling by a politically motivated, hand-picked judge makes it even more important for the courts in New York and Florida to do the right thing and stop this inquisition.”

Chris Kise, an attorney for the Trump entities, said in a statement: “This unprecedented order effectively seizes control of the financial affairs of a highly successful private corporate empire based on nothing more than a gross exaggeration of the standard deviations in valuation common in complex commercial real estate financing transactions. … Attorney General New York has overstretched the limits of its authority to set a very dangerous precedent.”

Trump filed a lawsuit Wednesday night against James and her office in a Florida court. The lawsuit alleges that James, a Democrat, is prosecuting Trump, a Republican, for political gain, and claims her office does not have the authority to seek documents related to Trump’s revocable trust, through which he owns the company. He claims that James’ request for the trust documents violates his “right to privacy and property” and rights in the trust.

A similar federal lawsuit filed in the Northern District of New York in December 2021 was dismissed in May. The judge in the case said there was little evidence that James’ office was motivated by political animus and that “no evidence” in the attorney general’s investigation was “handled in such a way as to constitute harassment.”

A spokesman for the New York attorney general called Trump’s new lawsuit “baseless.”

The New York attorney general’s lawsuit seeks $250 million and penalties including revoking the Trump Organization’s business certificate, effectively barring it from doing business in New York. It also seeks to permanently bar Trump and his three children, Ivanka, Eric and Donald Trump Jr., from serving as an officer or director of any business in New York, including their family’s company.

Attorneys for Donald Trump Jr., Eric Trump and Ivanka Trump did not immediately respond to a request for comment.

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