A Manhattan judge announced Thursday that he will appoint an independent conservator for former President Donald Trump’s real estate empire, restricting his company’s ability to freely make deals, sell assets and change its business structure.
Judge Arthur Engoron ordered the receiver for the Trump Organization while presiding over a lawsuit in which New York Attorney General Letitia James alleges that Trump and his company routinely misled banks and others about the value of assets like golf courses. and hotels that bear his surname.
Prosecutors say the Trump Organization continues to commit fraud and has taken steps to avoid potential lawsuit penalties, including incorporating a new entity in Delaware called the Trump Organization LLC in September, before the suit was filed.
Engoron, in an 11-page order, prohibited the Trump Organization from selling or transferring any non-cash assets without giving the court and James’ office 14 days notice. The intervener, who has not yet been appointed, will be in charge of ensuring compliance with the order and will immediately report any violations to the court and to the lawyers of both parties.
The Trump Organization must also give the receiver access to its financial statements, asset valuations and other information; it must provide a complete and accurate description of the company’s structure, and it must give the receiver at least 30 days’ notice of any potential restructuring, refinancing or sale of assets, Engoron said.
The company must also pay for the services of the receiver, the judge added.
Engoron’s decision to appoint a comptroller is the most recent ruling it has made against Trump or his interests. While presiding over disputes over subpoenas issued in the James investigation, the judge held Trump in contempt and fined him $110,000 after he was late in submitting documents, and forced him to testify. In that testimony, Trump invoked his Fifth Amendment protection against self-incrimination more than 400 times.
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