On Thursday, January 9, 2025, Fox News reported that a New York court initially assigned a new judge, Justice Judith McMahon, to preside over the civil fraud case against President-elect Donald Trump. This action followed accusations from Trump’s allies that Judge Arthur Engoron, the original judge, exhibited bias against the President-elect, his family, and his company. The court’s decision to replace Judge Engoron came via an automated email sent around 12:45 pm.
However, this judicial reassignment proved short-lived. Several hours later, at 4:12 pm, another automated message from the court system informed the parties involved that Judge Engoron had been reinstated to the case. A source close to Trump’s legal team expressed concern over this back-and-forth regarding the judge’s assignment.
The case, brought by New York Attorney General Letitia James, is currently under appeal. Following the appeals court’s decision, the case will be returned to a lower court, where Judge Engoron presided during the trial. This trial, a weeks-long non-jury civil fraud trial that commenced in October 2023, concluded with Judge Engoron finding Trump and other defendants liable for various fraudulent activities, including falsifying business records, issuing false financial statements, and insurance fraud.
Before the trial even began, Judge Engoron issued a summary judgment against Trump, focusing the subsequent trial on determining the appropriate penalties. A significant point of contention during the trial involved the valuation of Trump’s Mar-a-Lago estate. Judge Engoron valued the property at $18 million, a figure sharply disputed by President-elect Trump, who claimed the property was worth 50 to 100 times more than Engoron’s estimation. Real estate experts even suggested a valuation exceeding $300 million.
In his ruling, Judge Engoron criticized Trump’s conduct during the trial, noting his infrequent responses to questions and frequent irrelevant interjections. The judge stated that Trump’s behavior severely compromised his credibility. Throughout the trial, Trump, his allies, Republicans, and legal experts criticized Judge Engoron’s handling of the case. This criticism was amplified by the fact that Judge Engoron’s past campaign contributions have exclusively been to Democratic candidates.
Furthermore, Judge Engoron is reportedly under investigation for receiving unsolicited advice regarding the case. Trump and his family have denied all wrongdoing, maintaining that their assets were undervalued and that their financial statements included disclaimers informing banks to conduct their own assessments. The $454 million judgment against Trump is currently under appeal.
During the appeal process last year, judges on the New York appeals court appeared open to the possibility of reversing or reducing the $454 million civil fraud judgment.
Trump’s attorneys described the ruling as “draconian, unlawful, and unconstitutional.” D. John Sauer, Trump’s attorney and incoming solicitor general, argued that Attorney General James’ lawsuit overextended New York’s consumer protection laws, claiming there were no victims or complaints from lenders or insurers. Sauer also argued the case violated the statute of limitations due to transactions dating back over a decade. He warned that if the verdict stands, it could negatively impact real estate business practices.
Source: Fox News