Date Set for Dismantling of Donald Trump's Businesses

Donald Trump and his co-defendants have been given a deadline of October 26 to provide a New York state court and Arthur F. Engoron, the judge overseeing his civil fraud trial, with potential receivers for his New York businesses.

The date was indicated in a supplemental order signed by Judge Engoron on Wednesday, which also addresses the co-defendants in the case—including the former president's sons Donald Trump Jr. and Eric Trump.

Trump and his adult sons, as well as the Trump Organization, were found liable for fraud in the New York case on September 26, when Judge Engoron sided with New York Attorney General Letitia James to find that the former president had inflated the value of his assets by as much as $2.2 billion. According to the judge, there was "conclusive evidence" that Trump had overvalued many of his properties, including Mar-a-Lago and his Trump Tower penthouse.

Donald Trump speaks to reporters during the third day of his civil fraud trial in New York on October 4, 2023. Trump and his adult sons, as well as the Trump Organization, were found liable for fraud in the New York case on September 26. KENA BETANCUR/AFP via Getty Images

Trump, who has denied any wrongdoing, called Judge Engoron "deranged" and on Wednesday appealed the refusal to dismiss the civil lawsuit altogether. His lawyers wrote that they were contesting "each and every part" of Judge Engoron's September 26 ruling.

The former president has also previously accused James of launching the case against him to weaken his position at the 2024 presidential election. Trump is the frontrunner in the Republican primary, despite being involved in four separate criminal and federal cases.

According to the ruling, Trump will lose his license to operate a business in the state of New York and that will limit his ability to run his real estate company.

The latest order by Judge Engoron doesn't mean that Trump's New York businesses will be dismantled as of October 26, but it appears to be the first step in the process. The former president and the other co-defendants will have to submit the names of potential receivers for the judge's consideration.

Judge Engoron has also demanded that Trump and the other co-defendants provide the independent monitor, the Hon. Barbara S. Jones, with "a list of all entity defendants and any other entities controlled or beneficially owned by Donald J. Trump, Donald Trump Jr., Eric Trump, Allen Weisselberg, and Jeffrey McConney (two top executives at the Trump Organization) that have existing certificates filed pursuant to the Section 130 Entities" within seven days since October 4.

The section applies to surrendering companies. For each of these companies, the co-defendants will have to inform the independent monitor "whether and to what extent any third party has an ownership, partnership, or membership interest in such [an] entity."

Jones is a retired federal judge and currently the court-appointed monitor overseeing the Trump Organization.

That means that Trump and his sons will have to inform Judge Engoron of any transfer of the former president's properties and assets and the creation of new companies—preventing the former president from making transactions that could shield him from liability.

Newsweek contacted the Trump Organization for comment by email on Friday.