Donald Trump 'Effectively Out of Business' After Judge Rescinds Trump Organization License

The Trump Organization, Donald Trump's company and his real estate empire could soon collapse after a New York judge found him liable for fraud.

Trump was found to have falsely reported the size of his properties and inflated its value thereby defrauding banks and lenders. Because of this, one of the world's most famous real estate empires could collapse "like falling dominoes," as explained by Trump's former attorney, Michael Cohen.

Cohen explained that his former client is already effectively "out of business" in New York after the judgment handed by Judge Arthur Engoron on Tuesday. The judge not only found Trump liable for fraud but also rescinded the licenses of the Trump Organization and other companies owned by Trump and his two adult sons, Eric Trump and Donald "Don Jr." Trump Jr.

"Those companies will end up being liquidated ... the judge has already determined that the fraud existed," Cohen said during an interview with CNN.

According to Yahoo! News, New York Attorney General Letitia James is seeking $250 million in damages against Trump. However, Michael Cohen said it could be higher, exceeding $600 million after interest and penalties.

Donald Trump's Lawyers Will Appeal Trump Organization Fraud Case

It did not take long for Donald Trump to attack the judge and brand him a "political hack," with the former president adding that Judge Engoron "must be stopped."

The next day after the ruling, the Trump legal team asked the judge if his decision meant that the former president's assets and businesses must be sold or whether they could "continue to operate under receivership." To this, the judge stated that he would address the issue during the trial that will begin on October 2.

Trump's attorneys stated that they would be filing an appeal regarding the rescinding of the licenses and the appointment of receivers. They would also appeal the judge's ruling and assertion that the former president and the company's executives lived in a "fantasy world" of routinely, repeatedly, and illegally overvaluing property values and his personal net worth.

However, The Guardian noted that should these appeals be unsuccessful, this could mean the total collapse of Donald Trump's businesses and him being banned from doing business in New York where he makes the most money.

Donald Trump Also Loses Bid To Have Judge Recuse Herself

Donald Trump is not just losing in New York with the Trump Organization fraud case, but he is also losing in Washington DC with the federal election interference case. This is because the ex-POTUS's request to have Judge Tanya Chutkan recuse herself has been denied.

According to CNBC, Trump's attorneys argued that the Obama appointee made "disqualifying" statements about him during two cases regarding the January 6 Capitol Insurrection. However, the judge rejected the argument and wrote, "The court has never taken the position the defense ascribes to it."

"Based on its review of the law, facts, and record, the court concludes that a reasonable observer would not doubt its ability to uphold" her judicial oath to be fair to defendants, the judge wrote in her 20-page opinion.

This article is owned by Latin Post.

Written by: Rick Martin

WATCH: Trump Org. tries to figure out the future of its business after fraud ruling - CNN