First appearance on Fox: A New York court has appointed a new judge to handle the civil fraud case against President-elect Trump brought by New York Attorney General Letitia James.
The case and trial was presided over by Judge Arthur Engoron, who has been accused by Trump supporters of acting with bias against the president-elect, his family and his company.
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People familiar with the move told Fox News Digital that the court ordered New York County Supreme Court Judge Judith McMahon of Staten Island to handle the case.
Judge Arthur Engoron presides over the Trump Organization civil fraud trial in New York State Supreme Court in New York City on November 13, 2023. (Erin Schaff/Pool/AFP via Getty Images)
This case is currently on appeal. After the Court of Appeals issued its decision, the case was sent back to a lower court, with Mr. Engoron presiding over the trial.
According to people familiar with the matter, McMahon will begin the process of replacing him once the Court of Appeals rules.
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After a weeks-long non-jury civil fraud trial that began in October 2023, Engoron accused Trump and the defendants of “relentless and repeated fraud,” “falsifying business records” and “making false financial statements” last year. The court ruled that the company was liable for the issue of “Conspiracy to falsify false financial statements,'' “Insurance fraud,'' and “Conspiracy to commit insurance fraud.''
President-elect Donald Trump (left) and New York State Judge Arthur Engoron (Fox News)
But before the trial could begin, Engoron obtained summary judgment against Trump, and the subsequent trial turned into a lawsuit over the payment of the fine.
Notably, during this litigation, Engoron allowed President Trump's Mar-a-Lago to be valued at $18 million. President Trump disputed that valuation, saying the property was worth 50 to 100 times more than Engoron's estimate. And real estate insiders and developers claimed the property could be listed for more than $300 million.
And Engoron attacked Trump in the case's ruling last year, saying he “barely answered questions and often interjected with long, unrelated speeches on issues that went far beyond the issue at hand.” criticized. Scope of trial. ”
Former President Donald Trump's Mar-a-Lago resort in Palm Beach, Florida. (Charles Traynor Jr./Miami Herald/Tribune News Service via Getty Images)
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“His refusal to answer questions directly, or in some cases not at all, seriously damaged his credibility,” Engoron wrote.
During his trial late last year, Mr. Trump, his allies, Republicans and legal experts repeatedly criticized Mr. Engoron throughout his career. Donated exclusively to the Democratic Party — Regarding his handling of the case.
New York State Attorney General Letitia James speaks during a press conference on September 21, 2022 in New York. (AP Photo/Britteny Newman, File)
Mr Engoron is also reportedly under investigation for unsolicited advice he received in connection with the case.
Trump and his family have denied any wrongdoing, and the former president said his assets were undervalued. Trump's lawyers argued that there was a disclaimer in his financial statements and made it clear that banks should conduct their own evaluations.
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Trump has appealed the $454 million judgment. An appeal is pending in the New York Court of Appeals.
Judges on the New York Court of Appeals last year expressed openness to the possibility of reversing or reducing the sentence. $454 million civil fraud judgement.
President-elect Donald Trump speaks during a press conference at Mar-a-Lago on Tuesday, January 7, 2025 in Palm Beach, Florida. (AP Photo/Evan Vucci)
The president's lawyers called Engoron's sentence “draconian, illegal and unconstitutional.”
Trump lawyer D. John Sauer, who will be the next attorney general, argued that James' lawsuit expands on New York's consumer protection law, saying that Trump's business is not covered by financial services and insurance companies. “There are no complaints,” he said.
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Sauer said the causes “include clear violations of the statute of limitations,” pointing to deals used in non-jury civil fraud trials dating back more than a decade.
Sauer said that if the ruling is not overturned, “people will not be able to conduct their real estate business without fear.”
