Former President Donald Trump could potentially face criminal prosecution if his companies continue to trade in New York, according to a law professor. This comes after Judge Arthur Engoron stripped Trump’s companies of their right to trade in New York as punishment for fraudulent practices in obtaining bank loans. Letitia James, the New York Attorney General, filed a civil fraud lawsuit against Trump in which she is requesting $370 million in damages as well as a permanent ban on Trump conducting business in the state. Trump has denied any wrongdoing and claimed the case is politically motivated. An appeals court has temporarily frozen Engoron’s decision until it makes a ruling in the case.
Law professor Gregory Germain from Syracuse University stated that if the appeals court upholds Engoron’s decision, Trump could be liable to criminal prosecution. The companies involved in the case control some of Trump’s important properties, including Trump Tower in Manhattan and Mar-a-Lago in Florida. James has also requested a lifetime ban on Trump from the real estate industry, citing fraudulent exaggeration of asset values to obtain loans. However, Germain noted that the attorney general does not have the power to prevent Trump from doing business in other states.
Engoron, who had contentious interactions with Trump during the trial, is expected to deliver his verdict soon. The outcome of the case and the potential criminal implications for Trump’s companies remain uncertain.