Former President Donald Trump is using the current turmoil in the commercial real estate and banking sectors to defend his real estate dealings against potential sanctions by a New York judge evaluating allegations of fraud within the Trump Organization.
Awaiting a decision from Judge Arthur Engoron in Manhattan, Trump argues that his transactions were aboveboard despite accusations of submitting fraudulent financial statements to secure favorable loan terms.
In a late Monday post on Truth Social, Trump asserted that while the commercial real estate market faces defaults and litigation worldwide due to the COVID-19 pandemic and rising interest rates, his properties stand apart.
Trump Argues that Troubled Commercial Property Sector Validates Integrity of His Real Estate Transactions (Credits: Fortune)
He claimed his loans had been fully repaid without defaults, supported by robust financial statements and protective clauses. Trump emphasized being sued by New York Attorney General Letitia James for loans obtained from content lenders, represented by top law firms, which he characterized as impeccable.
Federal Reserve Chair Jerome Powell recently cautioned in a “60 Minutes” interview that some banks might face closure or mergers due to challenges in the commercial property sector. While larger banks seem equipped to handle these issues, Powell noted concerns with smaller regional banks with significant exposures to struggling real estate markets.
Trump’s argument aligns with his defense strategy during the trial against James’ lawsuit, where he emphasized his status as a preferred client for lenders, backed by financial statements urging due diligence.
However, Judge Engoron previously ruled that some fraudulent activity did occur, indicating that certain statements from the Trump Organization contained false information rather than industry-standard estimates or valuations.
The imminent ruling from Judge Engoron carries significant weight, as James seeks $370 million in damages and aims to prohibit Trump from conducting business in New York.
