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New York judge orders independent monitor to oversee Trump Organization

A New York State judge ordered an independent monitor to oversee the financial statements of the Trump Organization, following up on a lawsuit against the organization alleging fraud. File photo by Stefani Reynolds/UPI
A New York State judge ordered an independent monitor to oversee the financial statements of the Trump Organization, following up on a lawsuit against the organization alleging fraud. File photo by Stefani Reynolds/UPI | License Photo

Nov. 3 (UPI) -- The Trump Organization will be limited in its business activities for an indefinite period of time after a New York State judge ordered the appointment of an independent monitor to oversee the Trump Organization's financial statements and activities.

New York State Supreme Court Justice Arthur Engoron's order bars the Trump Organization from selling or transferring non-cash assets without approval from the court and the attorney general. The preliminary injunction does not have an end date. The monitor will continue to oversee the organization until ordered by the court.

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"Given the persistent misrepresentations throughout every one of Mr. Trump's (state finance corporations) between 2011 and 2021, the court finds that the appointment of an independent monitor is the most prudent and narrowly tailored measure to ensure there is no further fraud or illegality that violates (law)," Engoron wrote.

The decision comes after New York Attorney General Letitia James filed a lawsuit against the Trump Organization and principal owner and former President Donald Trump. Eric, Ivanka and Donald Trump Jr. are also defendants in the case. The lawsuit alleges the organization committed fraud by misrepresenting its value for financial gain. James seeks $250 million in fines from the defendants.

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James also accused the organization of attempting to evade the reach of state law by restructuring or moving its business outside of New York. On the same day James filed a civil suit against the Trump Organization, it filed paperwork for a new company "Trump Organization II."

The court will appoint a monitor, choosing from candidates recommended by the attorney general and the defendant. The monitor will then be put in place, likely by the end of the month, and oversee the organization at its own expense.

Trump, and attorneys representing the Trump Organization in this case, have been critical of the judge and attorney general, alleging them both of being biased or acting on political motivations.

"The NYAG's lawsuit is the culmination of a pretextual and politically motivated prosecution. The attempted destruction of the "Trump Organization" has been Letitia James' avowed goal since the moment she assumed office as Attorney General of the State of New York. Her promise to "get Trump" was a central theme of her political campaign and, to this day, remains a focal point for her fundraising activities," Trump's attorneys wrote in formal opposition to the lawsuit.

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