New York judge appoints watchdog to oversee Trump Organization, prevent ‘further fraud’

On Thursday, a Manhattan judge confirmed that an independent watchdog will be appointed to oversee the Trump Organization ahead of the $250 million civil fraud case against it, which is led by New York State Attorney General Letitia James. 

In October, James asked the Manhattan-based judge Arthur Engoron to appoint an independent and impartial body to prevent any fraud happening within the company and to stop any assets from being transferred out of her reach.

Judge Engoron said that having an independent body in place was “the most prudent and narrowly tailored mechanism to ensure there is no further fraud or illegality,” citing “persistent misrepresentations” in Trump’s statements of financial condition from 2011 to 2021.

Trump hit out at what he called a “ridiculous” decision by Judge Engoron.

“A puppet judge of the New York Attorney General and other sworn enemies of President Trump and the Republican Party has just issued a ruling never before seen anywhere in America,” Trump said. “It is Communism come to our shores.”

Referring to the upcoming midterms, Trump also said that the decision “sets a dangerous precedent for government interference in private enterprise and is an obvious attempt to influence the outcome of the upcoming election.”

James praised the decision and called it a “major victory” that will stop Trump and his companies from continuing “the extensive fraud that we uncovered.” She also noted that the judge found her claims likely to succeed at trial.

Judge Engoron’s ruling was focused on Trump reportedly overinflating the cost of his assets in the past, including when he gave his Trump Tower building in Manhattan a $327 million value.

Trump’s lawyer Cristopher Kise questioned this decision.

“You said experts can disagree” he said to Judge Engoron. “But does there reach a point it’s just not a disagreement … but bad faith?”

Kise also said that James’ request was a “manufactured emergency” ahead of the midterm elections. “There’s just no public interest here at all,” Kise said, calling the alleged fraud a matter of “corporate titans versus corporate titans.”

Kevin Wallace, who is a lawyer from James’ office, refuted these comments and said that it was crucial to the public to maintain an “honest and fair business environment” in the state.

“The alternative is, we’re in the wild, wild west,” he said.

Judge Engoron set a deadline of November 10th for both parties to submit three recommendations for the monitor.