William Jacobson says get out of New York while you can:
Rough politics has given way to the political weaponization of prosecutors’ offices. It’s dangerous and sets a tone for the entire state that political opponents of those in power are living – and operating their businesses – on borrowed time.
I don’t care what you think of Donald Trump, it’s disgusting, unseemly, and in my view completely unethical for a prosecutor to run for office pledging not only to get a political opponent, but also his family. That’s what Letitia James did when she ran for New York Attorney General. She then fulfilled that campaign promise, weaponizing her massive and powerful office to scour through Trump’s businesses to find a crime, but she found none that could be prosecuted so she brought a civil lawsuit to ruin Trump and his family.
Nothing about this process was within norms of how prosecutors should conduct themselves and their offices. It may not be unprecedented, but it’s still clearly wrong.
I don’t think the civil lawsuit had merit and predict it will be reversed on appeal, at least as to the outlandish fines imposed, but that’s besides the point. The lawsuit never would have been brought if James had not targeted Trump with the full weight of the NY Attorney General’s office specifically because she didn’t like his politics.
Professor Jacobson goes on to criticize the Bragg case against Trump, also in New York, and just as absurd in its charges.
I don’t know enough about the NY appeals court to say whether I think either case will be reversed at the state level (if indeed the Bragg case results in a conviction, which has an excellent chance of occurring). But I do think that if either or both cases go all the way to SCOTUS they probably will be reversed. There’s no question in my mind that guilty verdicts in either should be reversed, and I would say that even if the targets were blue – which of course they wouldn’t be in New York.
I blame not just James, but the judges who don’t throw such cases out of court because they are based on tortuous and novel legal “theories” that are obvious ploys to get one person. Juries likewise, but they are somewhat less culpable because it’s the judges who control the courtroom and what is allowed as evidence (the real estate trial was not a jury trial).
Governor Hochul realizes the real estate verdict could have a chilling effect on doing business in the state, but she is reassuring on that:
Hochul joined John Catsimatidis on “The Cats Roundtable” on WABC 770 AM, where she was asked if other New York businesspeople should be worried that if “they can do that to the former president, they can do that to anybody.”
“I think that this is really an extraordinary, unusual circumstance that the law-abiding and rule-following New Yorkers who are business people have nothing to worry about, because they’re very different than Donald Trump and his behavior,” Hochul responded….
The governor provided reassurance to New York businesses after the ruling. “By and large, they are honest people and they’re not trying to hide their assets and they’re following the rules,” she said of the people who own and conduct business in the New York City area.
But of course business people, especially those who do business on a large scale as Trump did, know full well that what Trump did was standard practice, has never been prosecuted before without someone being harmed as a result, and are aware that the way in which they are “very different than Donald Trump and his behavior” has nothing to do with their business practices and everything to do with their politics.
How many big business people in New York are conservatives and/or Republicans, and politically active? I don’t know, but I think it’s probably a relatively small number. But maybe not. People are voting with their feet (as the old saying goes) and leaving the state, but this has the effect of making it more reliably blue than ever, and will lead to more prosecutors such as James, more judges such as Engoron, and more juries that will convict those with whom they disagree rather than those who are guilty. It becomes a more and more dangerous venue for conservatives the more blue it gets.
Not that I’m suggesting people should stay for that reason. But it is a result of their departure.
Does New York really care? If most people see this as a one-off that only affects Trump, the vast majority will continue to invest there. Also, remember this ten years ago from then-governor Cuomo?:
New York Gov. Andrew Cuomo has caused a firestorm in the Empire State for declaring to a talk radio host that conservatives who are pro-life, pro-gun and anti-gay marriage “have no place in the State of New York.” Said Cuomo of conservatives: “Their problem is not me and the Democrats; their problem is themselves. Who are they? Are they these extreme conservatives who are right-to-life, pro-assault-weapon, anti-gay? Is that who they are? Because if that’s who they are and they’re the extreme conservatives, they have no place in the state of New York, because that’s not who New Yorkers are…. Moderate republicans have a place in this state.”
Clearly, Cuomo didn’t think these people were needed and felt the state would be better off without them. It would certainly be even more monolithically blue, which would give the Democrats more and more power to do whatever they wished.
NOTE: I’ve noticed that some people believe the real estate case was a criminal one, because it was brought by the state. But actually it was a civil case; see this.
Jonathan Turley provides his opinion:
In laying the foundation for his sweeping decision against former President Donald Trump, Judge Arthur Engoron observed that “this is a venial sin, not a mortal sin.” Yet, at $355 million, one would think that Engoron had found Trump to be the source of Original Sin.
The judgment against Trump (and his family and associates) was met with a level of unrestrained celebration by many in New York that bordered on the indecent. Attorney General Letitia James declared not only that Trump would be barred from doing business in New York for three years, but that the damages would come to roughly $460 million once interest was included.
That makes the damages against Trump greater than the gross national product of some countries, including Micronesia. Yet the court admitted that not a single dollar was lost by the banks from these dealings. Indeed, witnesses testified that they wanted to do more business with Trump, who was described as a “whale” client with high yield business opportunities.
Undervaluing and overvaluing property is a longstanding practice in New York real estate. The forms submitted by the Trump organization cautioned the banks to do their own estimates and the loans were paid in full and on time. Yet, the New York law used by James is a curiosity because it does not actually require a victim. Indeed, everyone can make ample profits and still allow for an investigation into “repeated fraudulent or illegal acts.”
I see plenty of jubilation online, too. It doesn’t matter to the celebrants that the law has never been used this way before and that it is clearly a biased political prosecution. They want Trump to suffer and they don’t care how it happens, but giving it the color of law is the icing on the cake.
Having campaigned on bagging Trump on any basis, James turned the law into a virtual license to hunt him down along with his family and his associates.
Engoron proved the perfect judge for the case. The opinion itself seems almost cathartic for the jurist who struggled with Trump inside and outside of court. In the judgment, Engoron fulfilled Oscar Wilde’s rule that the only way to be rid of temptation is to yield to it. He ordered everything short of throwing Trump into a wood chipper.
Turley isn’t usually quite that colorful in his writing. But he is very incensed about this case and this verdict:
The size of the damages is grotesque and should shock the conscience of any judge on appeal.
That would require a conscience, however.
Turley believes this will hurt business in NY:
As James gleefully uses this law to break up a major New York corporation, it is hard to imagine many businesses rushing to the Big Apple. …
The one hope for New York businesses may be the U.S. Supreme Court. Despite the deference afforded to the states and their courts, the court has occasionally intervened to block excessive damage awards.
So according to Turley, it’s not even clear that SCOTUS would take the appeal. I think it would, but I certainly don’t know. And would it happen prior to the election? Ordinarily the case has to go through the state system first.
I think this part of Turley’s essay actually makes one of the most important points of all:
In electing openly partisan prosecutors such as James and District Attorney Alvin Bragg, voters have shown a preference for political prosecutions and investigations.
As John Adams wrote:
We have no Government armed with Power capable of contending with human Passions unbridled by morality and Religion. Avarice, Ambition Revenge or Gallantry, would break the strongest Cords of our Constitution as a Whale goes through a Net. Our Constitution was made only for a moral and religious People. It is wholly inadequate to the government of any other.