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Donald Trump found liable for fraud in New York civil case

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Former president Donald Trump

Donald Trump found liable for fraud in New York civil case

A New York judge found Donald Trump and his family business fraudulently inflated the value of his properties and other assets, in a major defeat for the former U.S. president that could severely hamper his ability to do business in the state.

The scathing decision by Justice Arthur Engoron of New York state court in Manhattan will make it easier for state Attorney General Letitia James to establish damages at a scheduled Oct. 2 trial.

Engoron also ordered the cancellation of certificates that let some of Trump’s businesses, including the Trump Organization, operate in New York, and ordered the appointment of a receiver to manage the businesses’ dissolution.

The judge described how Trump, his adult sons Donald Jr. and Eric, the Trump Organization and other defendants made up valuations and inflated Trump’s net worth to suit their business needs.

“That is a fantasy world, not the real world,” Engoron wrote.

The judge also sanctioned the defendants’ lawyers for making “preposterous” legal arguments and fueling their clients’ “obstreperous” conduct.

Trump and the other defendants have argued that they never committed fraud, and that the challenged transactions were profitable. They plan to appeal Engoron’s decision.

“Today’s outrageous decision is completely disconnected from the facts and governing law,” Christopher Kise, a lawyer for Trump, said in a statement. “President Trump and his family will seek all available appellate remedies to rectify this miscarriage of justice.”

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James said she looks forward to presenting the rest of her case at trial.

“It’s a devastating ruling,” said Bill Black, distinguished scholar in residence for financial regulation at the University of Minnesota Law School. He said cancelling business certificates could hurt Trump’s ability to make money.

“If the decision is upheld, they have to liquidate the LLCs which actually hold the enormous bulk of the assets,” Black said, referring to limited liability companies.

Trump is seeking the Republican presidential nomination for 2024 and has maintained a commanding lead in the race despite the criminal charges he faces in multiple cases.

In a post on his Truth Social platform, Trump called accusations that he committed fraud “ridiculous and untrue,” and blasted Engoron as a “DERANGED” judge doing the bidding of James, a Democrat.

“This is Democrat Political Lawfare, and a Witch Hunt at a level never seen before,” Trump wrote. “If they can do this to me, they can do this to YOU!”

Trump has repeatedly asserted without evidence that indictments he faces are “witch hunts.”

NOT ‘IMMATERIAL’

James sued Trump in September 2022, accusing him, three of his adult children and the Trump Organization of lying for a decade about asset values and his net worth to defraud banks and insurers into providing better terms.

Engoron said James submitted “conclusive evidence” that Trump had overstated his net worth by between $812 million and $2.2 billion.

“Even in the world of high finance, this court cannot endorse a proposition that finds a misstatement of at least $812 million dollars to be ‘immaterial,'” he wrote.

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The judge said Trump’s overvaluations included his Mar-a-Lago estate in Florida, his penthouse apartment in Manhattan’s Trump Tower, and various office buildings and golf courses.

He took particular issue with Trump’s claim that the penthouse was 30,000 square feet (2,787 square meters), nearly three times its actual size, resulting in an overvaluation of as much as $207 million.

“A discrepancy of this order of magnitude, by a real estate developer sizing up his own living space of decades, can only be considered fraud,” Engoron wrote.

The judge said Trump also grossly overvalued Mar-a-Lago, estimating it was worth as much as $612.1 million, though an assessor said its market value was no more than $27.6 million.

Engoron also chided Trump for offering defenses in a deposition that were “wholly without basis,” including that there was nothing wrong with how he valued properties in a given year if their values subsequently went up.

“He also seems to imply that the numbers cannot be inflated because he could find a ‘buyer from Saudi Arabia’ to pay any price he suggests,” the judge wrote.

SLEW OF LITIGATION

Engoron’s ruling comes three months after a state appeals court said that some of James’ claims were too old because statutes of limitations had expired in either July 2014 or February 2016.

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Engoron rejected Trump’s argument that the decision essentially gutted James’ lawsuit, which James has said reflected a series of “continuing wrongs” that she could prove at trial.

The appeals court dismissed one defendant, Trump’s daughter Ivanka, from the case.

Trump also faces a slew of other litigation.

He has pleaded not guilty to charges in four indictments accusing him of trying to overturn his 2020 election defeat by Democrat Joe Biden, hoarding classified materials, and covering up hush money payments to a porn star.

Trump also faces a January civil trial over damages he owes for defaming the writer E. Jean Carroll, who claimed he raped her. He has denied wrongdoing.

Engoron’s decision does not automatically mean James’ fraud case will go to trial next Monday.

Trump has sued to delay the trial, accusing Engoron and James of ignoring the appeals court order to narrow the case.

He and the other defendants have said this made it impossible to prepare for trial because they did not know which claims they would have to defend against.

The appeals court is expected to rule on the request for a delay this week.

Donald Trump found liable for fraud in New York civil case

Reuters

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Scammers steal over $3.4bn from older Americans – FBI report

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Scammers steal over $3.4bn from older Americans – FBI report

Scammers stole more than $3.4 billion from older Americans last year, according to an FBI analysis issued Tuesday, indicating a spike in losses caused by increasingly sophisticated criminal tactics used to deceive the vulnerable into giving up their life savings.

Losses from scams reported by Americans over the age of 60 increased 11% last year compared to the previous year, according to the FBI.

Investigators are warning of an increase in brazen bank account-draining operations that entail deploying couriers in person to collect cash or gold from victims.

“It can have a devastating impact on older Americans who lack the ability to go out and make money,” said Deputy Assistant Director James Barnacle of the FBI’s Criminal Investigative Division. “People lose all their money. Some people become destitute.”

Last year, the FBI received more than 100,000 complaints from victims of scammers over the age of 60, with over 6,000 individuals losing more than $100,000.

It comes after a significant increase in reported losses by older Americans in the two years following the 2020 coronavirus epidemic, when people were confined to their homes and easier to reach over the phone.

Barnacle stated that investigators are finding organised, transnational criminal enterprises targeting older Americans through a variety of schemes, such as romance scams and investment frauds.

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Last year, the most common type of fraud reported by older individuals was tech support scams, in which scammers impersonate technical or customer care staff over the phone.

In one such scam, which authorities say is becoming more popular, criminals impersonate technology, banking, and government officials to convince victims that foreign hackers have infiltrated their bank accounts and that they should transfer their funds to a new account that the scammers secretly control.

According to the FBI, between May and December, there was an increase in scammers utilising live couriers to steal money from victims who were fooled into believing their accounts had been hijacked.

In those circumstances, scammers inform victims that their bank accounts have been compromised and that they must sell their possessions for cash or purchase gold or other precious metals to secure their savings. The fraudsters then arrange for a courier to collect it in person.

“A lot of the fraud schemes ask victims to send money via a wire transfer or a cryptocurrency transfer. When the victim is reluctant to do that, they’re given an alternative,” Barnacle said. “And so the bad guy will use courier services.”

According to prosecutors, an 81-year-old Ohio man shot and killed an Uber driver who he believed was attempting to rob him after receiving fraudulent phone calls earlier this month.

The man had been receiving calls from someone claiming to be an officer from the local court and demanding money.

The Uber driver had been instructed to get a package from the man’s residence, a request that officials believe was made by the same hoax caller or an accomplice.

The enormous losses to older Americans are most likely an underestimate. Only roughly half of the more than 880,000 complaints submitted to the FBI’s Internet Crime Complaint Centre last year included information about the victim’s age.

Scammers steal over $3.4bn from older Americans – FBI report

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Gaza: Protesters clash at UCLA, police arrest pro-Palestine demonstrators at Columbia University

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Gaza: Protesters clash at UCLA, police arrest pro-Palestine demonstrators at Columbia University

Violent skirmishes broke out on Wednesday on the campus of the University of California, Los Angeles (UCLA) between pro-Palestinian protesters and a group of counter-demonstrators, a live video coverage by a US broadcaster revealed.

According to the UCLA student publication Daily Bruin, supporters of Israel attempted to knock down a pro-Palestinian protest campsite on campus.

Police were responding to UCLA Chancellor Gene Block’s call for assistance, said Zach Seidl, Los Angeles Deputy Mayor of Communications, on X.

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The October 7 attack on southern Israel by Hamas terrorists from Gaza, followed by an Israeli offensive on the Palestinian territory, has sparked the largest outpouring of US student action since the 2020 anti-racism rallies.

Aerial footage from KABC, an ABC affiliate, showed people using sticks or poles attacking wooden planks set up as a temporary barricade to defend pro-Palestinian protesters, some of whom held placards or umbrellas.

Late on Tuesday, New York City police detained scores of pro-Palestinian activists holed up in an academic building on Columbia University’s campus in New York and dismantled a protest encampment that the Ivy League school had attempted to destroy for nearly two weeks.

Gaza: Protesters clash at UCLA, police arrest pro-Palestine demonstrators at Columbia University

 Reuters

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UN warns Israel assault on Gaza’s Rafah on ‘immediate horizon’

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United Nations Secretary-General, António Guterres

UN warns Israel assault on Gaza’s Rafah on ‘immediate horizon’

UNITED NATIONS, April 30 (Reuters) – The United Nations on Tuesday warned that an Israeli assault on Rafah in the Gaza Strip was “on the immediate horizon” and that “incremental” progress by Israel on aid access to the enclave could not be used to prepare for or justify an operation.

U.N. Secretary-General Antonio Guterres appealed for states with influence over Israel “to do everything in their power” to prevent an Israeli assault on Rafah in southern Gaza, where more than 1.2 million displaced Gaza Palestinians are sheltering.

Israel’s Prime Minister Benjamin Netanyahu vowed on Tuesday to go ahead with a long-promised assault, whatever the response by Hamas to latest proposals for a halt to fighting in the nearly seven-month-long war and a return of Israeli hostages.

“The world has been appealing to the Israeli authorities for weeks to spare Rafah, but a ground operation there is on the immediate horizon,” said U.N. aid chief Martin Griffiths in a statement. “The simplest truth is that a ground operation in Rafah will be nothing short of a tragedy beyond words.”

Israel pledged nearly a month ago to improve aid access to the enclave of 2.3 million people after U.S. President Joe Biden demanded steps to alleviate the humanitarian crisis, saying the U.S. could place conditions on support if Israel did not act.

Guterres told reporters that there had been “incremental progress” toward averting “an entirely preventable, human-made famine” in northern Gaza, but much more was urgently needed.

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“These improvements in bringing more aid into Gaza cannot be used to prepare for or justify a full-blown military assault on Rafah,” Griffiths said.

Guterres specifically called on Israel to follow through on its promise to open two crossings to the north.

“A major obstacle to distributing aid across Gaza is the lack of security for humanitarians and the people we serve. Humanitarian convoys, facilities and personnel, and the people in need must not be targets,” Guterres told reporters.

NO ALTERNATIVE TO LAND

A U.N.-backed report in March said famine was imminent and likely by May in northern Gaza, and could spread across the enclave by July. Guterres said the most vulnerable in the north “are already dying of hunger and disease.”

When asked what leverage the U.S. could use over its ally Israel to boost aid access and avert a Rafah assault, Guterres said: “It is very important to put all possible pressure in order to avoid what would be an absolutely devastating tragedy.”

U.S. Secretary of State Antony Blinken has said he will discuss with Netanyahu on Wednesday measures that Israel still needs to take to increase the flow of aid into Gaza.

“I strongly encourage the government of Israel and the Hamas leadership to reach now an agreement,” Guterres said. “Without that, I fear the war, with all its consequences both in Gaza and across the region, will worsen exponentially.”

The U.N. is in talks with the U.S. about a floating pier it is constructing to allow maritime aid deliveries to Gaza from Cyprus. Guterres said: “We welcome aid delivery by air and sea, but there is no alternative to the massive use of land routes.”

Israel’s Deputy U.N. Ambassador Jonathan Miller said last week that Israel continued “to elevate and step up” its aid support and that there had been substantial results with a “dramatic increase” in the volume of aid over the past several months.

Israel is retaliating against Hamas in Gaza over an Oct. 7 surprise attack on southern Israel led by the militant group.

Israel says about 1,200 people were killed and more than 250 people were taken hostage in the assault. Gaza health authorities say Israel has killed more than 34,000 people in its offensive in Hamas-run Gaza since then.

UN warns Israel assault on Gaza’s Rafah on ‘immediate horizon’

Reuters

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