Last Updated on November 13, 2023 by Robert C. Hoopes
Former President Donald Trump is facing a high-stakes civil fraud trial in New York that could have far-reaching consequences for his business empire. If found liable, Trump could face hefty financial penalties and potentially lose his flagship properties, including Trump Tower, 40 Wall Street, and the Seven Springs family compound.
In a surprising turn of events, Judge Arthur Engoron recently issued a summary judgment order finding Trump guilty of fraud and calling for a receiver to oversee the dissolution of his entities. This means that properties like Mar-a-Lago, a golf course in Scotland, and his US-based golf courses could be affected.
Real estate attorney Adam Leitman Bailey predicts that Trump may not see immediate changes in his holdings and could continue doing business during the legal process, though the situation could become messy and complicated. However, if Trump is forced to sell his properties or loses his appeal, it could result in devastating losses for him.
Trump’s attorney argues that the prosecution’s claims of fraud are merely industry standard practices. Nonetheless, the majority of Trump’s business interests lie in real estate, and selling properties in a short period of time could lead to significant financial losses.
While this trial could have major implications for Trump and his business empire, it may not be the end of it. Trump holds other properties and businesses that could potentially sustain his empire.
In addition to potential repercussions for his real estate ventures, the court order to disband the Trump Organization could impact Trump’s latest business endeavor, Truth Social. If the fraud judgments hold up, Trump’s social media platform could be affected.
Despite the high-profile nature of the trial and its potential implications for Trump’s business, experts believe that it is unlikely to have a significant impact on the overall New York real estate market. This suggests that the fallout from the trial will primarily affect Trump and his properties, rather than the broader industry.