Donald Trump, sons found liable for fraud while building real estate empire

In a significant setback for the former US president that could seriously impair his capacity to conduct business in the state, a New York judge concluded that Donald Trump and his family firm had falsely increased the worth of his properties and other assets.

Letitia James, the state attorney general, will find it simpler to prove damages in a trial set for October 2 as a result of Justice Arthur Engoron's harsh ruling in New York state court in Manhattan.

As well as appointing a receiver to oversee the firms' dissolution, Engoron ordered the cancellation of certifications that allowed certain of Trump's businesses, including the Trump Organisation, to function in New York.

The court explained how Trump, his adult sons Donald Jr. and Eric, the Trump Organisation, and other defendants fabricated appraisals and artificially inflated Trump's net worth to suit their commercial objectives.

"That is a fantasy world, not the real world," Engoron wrote.

The judge also sanctioned the defendants' lawyers for making "preposterous" legal arguments and fueling their clients' "obstreperous" conduct.

According to reports, Trump and the other defendants have argued that they never engaged in fraud and the contested transactions were lucrative. They intend to challenge Engoron's judgement.