Ivanka Trump could be the successor to her father's empire if a judge imposes a lifetime real estate ban on former President Donald Trump this week, a business expert said.
Trump, his two eldest sons, Donald Trump Jr. and Eric Trump, as well as the Trump Organization, are co-defendants in the $370 million civil fraud trial brought by New York Attorney General Letitia James. She accuses them of inflating his net worth by billions of dollars to obtain benefits such as better bank loans and reduced tax bills.
Trump denies wrongdoing and has repeatedly said that the litigation was politically motivated to derail his 2024 presidential campaign, given he is the front-runner for the Republican nomination.
In September, Judge Arthur Engoron ruled that Trump, his two adult sons, their businesses and executives committed fraud in their property valuations. The order is under appeal. The court will decide on a punishment and six other accusations, including falsifying business records, insurance fraud and conspiracy claims.
The trial ended on January 11, when Engoron said he hoped to hand down a ruling by January 31.
James last week requested that Engoron ban Trump for life from the real estate industry in New York and ban Donald Jr. and Eric for five years each.
Eric C. Chaffee, a law professor at Case Western Reserve University in Ohio and an expert in business law, said that could leave Ivanka running the empire.
"If former President Trump's sons are banned for five years, Ivanka Trump could end up handling former President Trump's real estate holdings in New York. She has already shown herself to be a capable business person, and this would not be surprising," Chaffee said.
Chaffee said James' request that Engoron ban Trump is unusual but not without precedent.
"For former President Trump, such a ban would be a major penalty considering his family's history in the New York real estate industry," Chaffee said.
He believes Trump would likely try to transfer his authority to other family members.
"The Attorney General has also requested a five-year ban on Donald Trump Jr. and Eric Trump from working in New York's real estate industry, which would complicate the decision as to who would assume control," Chaffee said. "Former President Trump has regularly argued that the suit against him is politically motivated. Even if that is the case, coupled with a proposed $370 million fine, the ban would be a harsh and severe penalty if the court grants it."
Paul Golden, a partner at the New York law firm Coffey Modica, said that as an appellate court agreed to remove Ivanka Trump from James' case, she could take over the family business. However, if Engoron agrees to the bans on the former president, Eric and Donald Jr., she would have to show that neither her father nor her brothers were secret beneficiaries of the real estate business.
"As the Appellate Division, First Department dismissed the claims against Ivanka Trump, it would appear that, strictly speaking, she would be permitted to work in the New York real estate industry regardless of Hon. Engoron's ultimate decision," Golden said.
Golden noted that Engoron's existing orders indicated that certificates of any entity "controlled or beneficially owned" by the three Trump men are canceled.
"Therefore, if Hon. Engoron's upcoming decision about a ban has similar language, and bans the operation of new real estate entities controlled or beneficially owned by Donald J. Trump or these two sons, then anyone operating an entity would have to make sure to comply with that decision," he said.
Newsweek reached out to Trump's attorney by email on Monday for comment.
Colleen Faherty, a lawyer in James' office, submitted a letter to Engoron on January 23 requesting that he stop Trump from ever working in the real estate industry again. Faherty mentioned the appeals court decision in the case of Martin Shkreli, nicknamed "Pharma Bro" by the media, who has been banned for life from the pharmaceuticals industry. She noted that Shkreli was also fined more than $60 million.
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Sean O'Driscoll is a Newsweek Senior Crime and Courts Reporter based in Ireland. His focus is reporting on U.S. law. ... Read more
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