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Join Telegram ChannelFIRST ON FOX: A New York court has appointed a new judge to preside over the civil fraud case against President-elect Trump brought by New York Attorney General Letitia James.
The case and trial were handled by Judge Arthur Engoron, who was accused by Trump's allies of acting biased against the president-elect, his family and his business.
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Sources familiar with the matter told Fox News Digital that the court assigned New York County Supreme Court Justice Judith McMahon of Staten Island to the case.
Judge Arthur Engoron presides over the Trump Organization civil fraud trial at New York State Supreme Court in New York on November 13, 2023. (ERIN SCHAFF/PISCINE/AFP via Getty Images)
The case is currently pending on appeal. Once the appeals court issues its decision, the case will be sent back to the lower court, with Engoron presiding during the trial.
McMahon will replace him for the remainder of the proceedings once the appeals court issues its decision, sources said.
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Engoron, after a weeklong nonjury civil fraud trial that began in October 2023, ruled last year that Trump and the defendants were responsible for “persistent and repeated fraud,” “falsifying business records,” of “publication of false financial statements” and “persistent and repeated fraud”. “conspiracy to falsify false financial statements,” “insurance fraud,” and “conspiracy to commit insurance fraud.”
President-elect Donald Trump, left, and New York Judge Arthur Engoron (Fox News)
But before the trial began, Engoron entered summary judgment against Trump, making the subsequent trial a case about whether to pay a fine.
Notably, during the course of the deal, Engoron allowed the value of Trump's Mar-a-Lago to be listed at $18 million. President Trump disputes this assessment, saying the property is worth 50 to 100 times more than Engoron's estimate. And real estate insiders and developers have claimed the property could cost more than $300 million.
And in his ruling in the case last year, Engoron went after Trump, criticizing him for his participation in the trial, saying he “rarely answered questions and frequently intervened in lengthy off-site speeches.” of remarks on issues well beyond the scope of the trial. »
Former President Donald Trump's Mar-a-Lago resort in Palm Beach, Florida. (Charles Trainor Jr./Miami Herald/Tribune News Service via Getty Images)
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“His refusal to answer questions directly, or in some cases, to answer at all, seriously compromised his credibility,” Engoron wrote.
During the trial late last year, Trump, his allies, Republicans and legal experts repeatedly criticized Engoron – who throughout his career exclusively given to Democrats – on his management of the affair.
New York Attorney General Letitia James speaks during a news conference, September 21, 2022, in New York. (AP Photo/Brittainy Newman, file)
Engoron is also reportedly under investigation regarding unsolicited advice he received regarding the matter.
Trump and his family have denied any wrongdoing, with the former president claiming his assets were undervalued. Trump's legal team insisted that his financial statements included disclaimers and made it clear to banks that they needed to make their own assessments.
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Trump appealed the $454 million judgment. The appeal is pending before the New York Court of Appeals.
New York appeals court judges were receptive last year to the possibility of overturning or reducing the $454 million civil fraud judgement.
President-elect Donald Trump speaks during a news conference at Mar-a-Lago, Tuesday, Jan. 7, 2025, in Palm Beach, Florida. (AP Photo/Evan Vucci)
The president's lawyers called Engoron's decision “draconian, illegal and unconstitutional.”
Trump's lawyer, D. John Sauer, who is the new solicitor general, argued that James' lawsuit expanded New York's consumer protection laws and said there was “no victim” nor “any complaints” about Trump’s activities from lenders and insurers.
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Sauer said the case “involves a blatant violation of the statute of limitations,” pointing to transactions used in the non-jury civil fraud trial that dated back more than a decade.
Sauer said that if the verdict is not overturned, “people will not be able to do business in real estate” without fear.