NEW YORK (AP) — Donald Trump could potentially have his real estate empire ordered “dissolved” for repeated misrepresentations on financial statements to lenders in violation of New York’s powerful anti-fraud law.
But an Associated Press analysis of nearly 70 years of similar cases showed Trump’s case stands apart: It’s the only big business found that was threatened with a shutdown without a showing of obvious victims and major losses.
Some legal experts worry if the New York judge goes ahead with such a penalty in a final ruling expected within the next couple of weeks, it could make it easier for courts to wipe out companies in the future.
“This sets a horrible precedent,” said Adam Leitman Bailey, a New York real estate lawyer who once sued a Trump condo building.