Judge Blocks Trump From Secretly Transferring His Money

Judge Arthur Engoron is taking precautionary steps against former President Donald Trump, blocking Trump from making any moves to secretly protect his money while his civil fraud trial is underway.

Engoron issued a new ruling on Thursday morning, ordering all the defendants named in the lawsuit to provide a list of all the entities they currently own and to what extent any third party may have an ownership or interest in those entities. They must also provide advance notice for "the creation of a new entity" and "any anticipated transfer of assets or liabilities to any other entities."

Trump, his two eldest sons, Donald Jr. and Eric, former chief financial officer of the Trump Organization, Allen Weisselberg, and Trump Organization controller Jeffrey McConney will have a week to disclose all of the information to former federal judge Barbara Jones, the court-appointed monitor currently overseeing the company's finances.

The order comes ahead of the fourth day of Trump's civil trial in Manhattan. Engoron has already agreed with prosecutors that there is "conclusive evidence" that the former president inflated his assets and canceled the Trump Organization's business certification. New York Attorney Letitia James is seeking $250 million in damages from Trump as well as an additional ban that would prevent Trump and his two sons from conducting business in the state.

Former President Donald Trump appears in the courtroom for the third day of his civil fraud trial at New York State Supreme Court on October 04, 2023, in New York City. Judge Arthur Engoron is blocking Trump from making any moves to secretly protect his money while his civil fraud trial is underway. Spencer Platt/Getty Images

Former federal prosecutor Michael McAuliffe told Newsweek that Engoron's Thursday order is the "logical next step" for the court proceedings as the business entities subject to the case will soon be assigned babysitters to oversee their financial activity and possible dissolutions. McAuliffe added that the order shows exactly why Trump can't just brush off his legal challenges as the 2024 election grows near.

"The court's supplemental order reflects why the Trump family defendants have good reason to fear the civil fraud lawsuit and the ongoing trial," he said.

Because Trump's real estate empire is now under threat in the same city where he built it decades ago, Engoron's September 26 ruling led to speculations about whether or not the former president would try to transfer ownership of his properties to others close to him in an effort to maintain control of those businesses.

Some suggested that he could transfer them to his wife, former First Lady Melania Trump, since she is not a defendant in the fraud lawsuit, but her former Chief of Staff Stephanie Grisham told Newsweek she'd be unlikely to do so unless she was "granted some major control or power."

McAuliffe said it's likely Trump's legal team will appeal the most recent order, but that the fraud trial will continue in the meantime.