From Fortune Magazine:

Trump’s business empire may be dissolved as punishment for financial misrepresentations, a fate few have faced. Trump could have his New York properties and businesses taken over by a receiver, leading to their possible liquidation. The process will become clearer after a Jan. 31 ruling. The repercussions of this action could set a bad precedent. Previous companies dissolved under New York’s anti-fraud law showed actual victims and losses, but Trump’s case does not show the same. This is a rare instance in the near 70 years of civil cases under the law. While certain legal experts say this action is warranted due to fraudulent actions, Trump wonders if this is because people simply don‘t like him. There aren’t clear victims or major losses in Trump’s case. The Trump case is seen as unprecedented and could set a bad precedent for future cases. In previous cases dissolved under the law, customers faced great losses and damages. However, there isn’t a clear list of victims in Trump’s case. Trump’s business practices are already under the microscope. His nonprofit organization, Trump Foundation, shut down in 2018 because of similar financial controversies. Trump’s educational institute, Trump University, was sued under the anti-fraud law for making false promises to students but settled for $25 million. Businesses have been dissolved under this law in the past due to victims and losses. But for Trump’s case, these key factors are not evident. Despite the fact that previous companies dissolved under the anti-fraud law had clear victims and significant losses, Trump’s case does not meet those qualifications. There are concerns about the dangers of setting a precedent with this case that could determine future court decisions. After a Jan. 31 ruling, Trump’s New York properties and businesses could potentially face liquidation. New York’s anti-fraud law is meant to ensure actions that can be classified as fraud, don’t need clear intent to deceive or cause any particular monetary losses or duping. Trump’s case is unlike most previous examples as it lacks victims and major losses, a key factor in all previous cases. Trump’s business practices are under scrutiny as the punishment for misrepresentations on financial statements involves a potential dissolution of his business. In previous cases dissolved under New York’s anti-fraud law, victims and losses were key factors. However, Trump’s case appears to be an exception. This is a very rare occurrence over the last 70 years of civil cases under the law. The potential repercussions of this decision are unknown but could potentially set a precedent. There is uncertainty over the impact of a receiver taking over Trump’s New York properties and businesses and what that means for their future. The New York attorney general brought the case against Trump, which could lead to a ban on his business in New York and require him to pay $370 million. However, neither she nor her lawyers have asked for a property sale, which means the future of Trump’s business is uncertain. The dissolution of any business under this law is a rare occurrence. The potential repercussions of this significant decision in Trump’s case are unknown, but its impact could be felt in future cases.



Read more: If Trump’s real estate empire is ‘dissolved’ under New York anti-fraud law, it will be one of only a dozen times it’s happened