“It’s essentially the equivalent of the corporate death penalty for the Trump Organization in New York state,” Conway said on CNN on Tuesday night.
Judge Arthur Engoron ruled that Trump committed fraud for years by overvaluing his assets and net worth to obtain loans, and ordered the dissolution of some of former president’s companies.
Trump claimed the ruling was a violation of his civil rights, and insisted that he had “done business perfectly.”
But Conway explained that the judge found Trump guilty of violating the Martin Act, “an extremely powerful weapon that the state can use against fraudsters.”
He said the act doesn’t require proof of fraudulent intent, and doesn’t require evidence that the false numbers were relied on by anyone. All it requires are that the numbers are false.
And in Trump’s case “there was no dispute that the numbers were false, and substantially so,” Conway noted.
Conway said the act allows for “extraordinary remedies,” including stripping a company of its ability to do business in the state and ordering the dissolution of the business, which is what the judge decided on Tuesday.
“No matter what he finds in the damages phase of this trial, the Trump organization is out of business,” he said. “And that’s not good for Donald Trump.”
Trump vowed to appeal.
Conway spoke with CNN’s Wolf Blitzer and Laura Coates:
Other legal experts also commented on what the ruling means for the former president and his family business:
This is New York's corporate death penalty, applied to Trump because of years of misconduct. Justice. https://t.co/mzGJ7vdhaT
— Joyce Alene (@JoyceWhiteVance) September 26, 2023
Indeed, one possibility is that assets will need be sold to satisfy outstanding debts, including any disgorgement of profits ordered by the judge. Remember: The AG has asked that Trump and his co-defendants hand over “at least $250 million” from their fraudulent scheme. FIN
— Lisa Rubin (@lawofruby) September 26, 2023
Blockbuster decision from court in NY AG civil case finding Trump violated the law by overstating the value of properties by more than $800 million(!) to obtain loans and insurance. Judge cancels corporate certificate for Trump Org to do business in NY. https://t.co/xhVaFDeuE4
— Barb McQuade (@BarbMcQuade) September 27, 2023
Part of basis for cancelling Trump Organization et al's certificates:
"Even with a preliminary injunction in place, and with an independent monitor overseeing their compliance, defendants have continued to disseminate false and misleading information while conducting business." pic.twitter.com/tCWK6K4tGS
— Ryan Goodman (@rgoodlaw) September 26, 2023
Donald Trump is no longer in business in New York State.
A judge canceled all of his business certificates and appointed a judge to monitor the assets.
Barring an unlikely reversal by an appeal court, the assets will be sold and Trump, Don Jr., & Eric are barred from business.
— David Cay Johnston (@DavidCayJ) September 27, 2023
In addition to finding that Trump committed fraud, the judge canceled the certificates of various Trump businesses, appointed a former judge as an independent monitor of the Trump Organization, and will appoint receivers to manage the canceled LLCs.
This is a pretty big deal. https://t.co/0Z4y3lkHTK
— Renato Mariotti (@renato_mariotti) September 26, 2023
No, Trump can’t just reincorporate in Florida.
He still needs licenses to operate any businesses in NY — and he won’t be able to get them.
His NY companies are being stripped from him and placed into receivership, just as if he was bankrupt.
— Tristan Snell (@TristanSnell) September 26, 2023