Comment on Trump's 'corporate death penalty' explained: veteran Manhattan fraud prosecutors describe what's next

Trump's 'corporate death penalty' explained: veteran Manhattan fraud prosecutors describe what's next

Don Jr., Donald Trump, and Ivanka Trump appear on "Celebrity Apprentice" on May 16, 2010.Bill Tompkins/Getty Images A Manhattan judge on Tuesday found Trump and his real-estate company liable for fraud. The judge ordered Trump Organization's New York corporate charters revoked immediately. A receiver will be appointed to 'dissolve' the company – but years of appeals may play out first. Experts are calling it the "corporate death penalty." And what happens next is unchartered territory.In a stunning decision on Tuesday, a Manhattan judge found that Donald Trump committed widespread, longstanding and ongoing fraud at the Trump Organization, and ordered what experts in New York financial crimes say amounts to the dissolution of his company.The penalty, awarded on behalf of New York attorney general Letitia James, is so extreme, that Trump may fight James and the judge for years before anything actually happens.And the penalty is so rare, that the only previous time it's been attempted on such a grand scale – when James sought the corporate death penalty in her three-year-old, ongoing fraud lawsuit against the NRA – has failed."It's a staggering judgement," said John Moscow, a former financial crimes prosecutor for the Manhattan district attorney's office."It means you are no longer a company, and the judge is appointing someone to take over the assets and distribute them as the court sees fit."New York Supreme Court Justice Arthur Engoron's order dissolving the Trump Organization.New York Supreme Court/InsiderThe ruling by New York Supreme Court Justice Arthur Engoron spends more some 35 pages describing Trump's frauds, and disassembling his lawyers' arguments.


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