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| Photo Credit: AP. |
A Manhattan judge Thursday said he will appoint an independent monitor for the Trump Organization to avoid “further fraud” as former President Donald Trump battles New York authorities in a case against his company.
Judge Arthur
Engoron said an external monitor was needed to restrict the company’s ability
to freely make deals, sell assets and change its corporate structure.
In an
11-page order, Engoron said Trump and the Trump Organization “demonstrated
propensity to engage in persistent fraud” and that appointing an outside
monitor “is the most prudent and narrowly tailored mechanism to ensure there is
no further fraud or illegality” pending the resolution of the lawsuit,
according to The Associated Press.
Engoron also
bared the Trump Organization from selling or transferring any noncash assets
without giving the court and James Office 12 days' notice, according to The Associated
Press.
The Trump
Organization is facing criminal charges for alleged tax and financial crimes in
a trial that started in October and could be forced to pay fines and back taxes
up to $1.6 million, according to Bloomberg.
The Trump
Organization has maintained its innocence in the matter after the company was
indicted last year.
In August
Trump’s top executive Allen Weisselberg, 75, agreed to testify against the
company in plea bargain after pleading guilty for tax evasion on a free
apartment, according to The Associated Press.
Weisselberg,
a former longtime chief financial officer and a senior Trump Organization
adviser pleaded guilty to all 15 of the charges brought against him in the
case, The Associated Press reported.
Weisselberg
admitted taking in over $1.7 million worth of untaxed extras – including school
tuition for his grandchildren, a free rent for a Manhattan apartment and lease
payments for a luxury car as well as keeping some of the records off the books,
according to The Associated Press.
In September
New York Attorney General Letitia James sued Trump and his adult children over
claims of manipulating the value of his business assets to borrow money on more
favorable terms. Mr. Trump is also accused of paying lower insurance premiums
as well as paying lower taxes.
The
Democratic Attorney General accused Trump, his family and his business of
submitting false documents, adding she believes it violated state and federal
laws, The Washington Times reported.
Trump
described James as “racist” and said his trial is a “political witch-hunt.” In
a statement Thursday, Trump described Engoron as James’ “puppet judge”.
The proposed
monitor will be responsible for ensuring the company’s compliance and is
expected to report potential violations to the court and lawyers for both
sides.
According to
the order, The Trump Organization must grant the monitor access to its
financial statements, asset valuations and other disclosures, and must provide
a full and accurate description of the company’s structure and must give the
monitor at least 30 days notice of any potential restructuring, refinancing or
asset sales, Engoron reportedly said, according to The Associated Press.
“Today’s decision sets a dangerous precedent for government interference in private enterprise and is an obvious attempt to influence the outcome of the upcoming election,” the Trump Organization said in a statement, calling the move “more political persecution by Letitia James,” according to The Associated Press.