The bombshell court ruling invalidating Trump Organization business certificates has created a cloud of confusion over exactly what will happen with the company’s properties.
Lawyers for Donald Trump on Wednesday asked New York State Supreme Court Justice Arthur Engoron to clarify his ruling from the previous day that Trump and his company had committed fraud by falsely stating the values of his properties.
The ruling allows state Attorney General Letitia James, whose office brought the suit, to cancel the legal certificates that allow several Trump entities and LLCs to do business in New York state. The action, which some are calling the “corporate death penalty,” has left Trump’s properties in a sort of legal limbo.
Diana Florence, a former Manhattan financial-crimes prosecutor who is now in practice, told Insider that it’s similar to someone losing their driver’s license: They can still own their vehicle, but now there are prohibitions on how they use it.
“Without a corporate charter, you can’t operate as a corporation,” she said. “You can’t get loans, you can’t apply for a government contract.”
“It’s comparable to once a person dies,” Florence added. “A dead person can’t sell property. Only the executor of the estate can do that — or in this case, the receiver.”
Trump attorney Chris Kise on Wednesday asked Judge Engoron to clarify what role the receiver will play and exactly how the ruling affects Trump’s business, the Wall Street Journal reported. Kise said there could be as many as 500 business entities affected, including those related to properties like Trump Tower.
“Are they going to be sold or managed under the direction of the receiver?” the attorney asked in the pretrial hearing reported by the outlet.
Engoron said he wasn’t ready to rule on the question, but would address it at a later day.
Trump and James have 30 days to offer potential candidates for the receiver position. Kise said he would appeal the ruling.
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