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

Mod: It has gotten to the point where we no longer need to search hard for Trump's crimes, but rather what he has ever done that is at all legitimate.

Trump's 'corporate death penalty' explained: veteran Manhattan fraud prosecutors describe what's next (Business Insider link): Experts are calling it the "corporate death penalty." And what happens next is uncharted 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."

The ruling by New York Supreme Court Justice Arthur Engoron spends more some 35 pages describing Trump's frauds, and disassembling his lawyers' arguments. Then it yanks the corporate charter in two short paragraphs.

The first paragraph orders the immediate cancellation of any "certificates," meaning corporate licenses, that are held by Trump, his two adult sons, Trump Organization, and its underlying LLCs.

The second orders that "within 10 days of the date of this order, the parties are directed to recommend the names of no more than three potential independent receivers to manage the dissolution of the canceled LLCs."

Letitia James Has Killed The Myth Of Donald Trump (PoliticusUSA link): The judge in New York ruled that Donald Trump, Eric Trump, and Donald Trump Jr. all committed fraud for years. The judge agreed with AG James that Trump’s business wasn’t real estate so much as it was inflating assets and lying about his personal wealth to get loans.

The big word in the judge's order is dissolution. Not only did the judge rule that the Trumps were unfit to do business in New York, but that their businesses were going to be dissolved.

As they say on the late-night commercials, but wait, there’s more. AG James is seeking fines and penalties in the $250 million range.

James has proven that Trump isn’t worth anything close to what he claimed, and the state of New York is going to seize Trump’s assets and sell them to pay any judgment against him.

Mod: More at both links. Here is a brief video on the topic of cognitive decline.

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