Donald Trump's Biggest Legal Problem May Be Yet to Come

Donald Trump could face criminal prosecution if his companies continue to trade in New York, a law professor has said.

In a summary judgment last September in Trump's New York civil fraud trial, Judge Arthur Engoron stripped Trump's companies of their right to trade in New York as punishment for Trump's fraudulent use of inflated property valuations to obtain bank loans.

At the time, the former president wrote on the social media site, Truth Social, that his civil rights had been violated and that his companies have "done a magnificent job for New York State" and "done business perfectly."

In October, an appeals court froze Engoron's decision until it makes a ruling in the case.

Engoron's decision came in a lawsuit taken against Trump by New York Attorney General Letitia James for inflating the value of his assets to get more favorable loans. James is asking for $370 million and for Trump to be permanently barred from doing business in New York. Trump has maintained his innocence and claimed the case is politically motivated as he is the GOP frontrunner in the 2024 presidential race.

Gregory Germain, a law professor at Syracuse University in upstate New York, told Newsweek that Trump could be liable to criminal prosecution if the appeals court upholds Engoron's decision to strip Trump's companies of their right to trade.

Germain said that, in the September ruling, "Judge Engoron granted the attorney general's summary judgment motion before the trial began, finding that because of Trump's persistent fraud, he and his controlled entities would have their business licenses revoked, which would preclude him from doing business in the State of New York, and a receiver would be appointed to liquidate any properties he owned in New York."

"Those determinations were stayed by the appellate division pending appeal. If they were to go into effect, it would be a crime for him or his entities to continue operating any businesses in New York without a business license," Germain said.

Newsweek sought email comment from Trump's attorney on Wednesday.

Some of the companies involved control some of Trump's most important properties, including Trump Tower in Manhattan and his Mar-a-Lago estate in Florida.

In addition, James has also asked Engoron to ban Trump from the real estate industry for life after Engoron found that Trump had fraudulently exaggerated the value of his assets to obtain bank loans.

Engoron, who had several clashes with Trump during the New York trial that was held to determine a number of other issues, is expected to deliver his verdict in the coming days.

In relation to the proposed lifetime ban on doing business, Germain said that Trump "presumably would not be prohibited from doing business in other states, as the AG does not have the power to prevent him from doing business elsewhere."

"It would only affect his properties and businesses in New York, which are of course a significant part of his holdings."

After Engoron determined that Trump was liable for fraud, a months-long damages trial ensued late last year. The trial ended in early January with Engoron saying that he would try to have his ruling by January 31. However, a New York court spokesperson said on Thursday that a verdict will not be reached until early to mid-February, adding that the new deadline is "subject to modifications."