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On Wednesday, representatives of President Donald Trump filed a brief in the New York Court of Appeals, arguing the court should throw out his liability finding in a $464 million civil fraud case that centered on Trump’s real estate valuations.
The reply, made in response to an appeal from New York Attorney General Lititia James’ efforts to resurrect those penalties after a lower court tossed them out, argues the case had several legal flaws that should have prevented it from being heard in the first place.
“This case should have never been brought, and the judgment cannot stand,” the appeal states. “This case is extremely unusual; it involves not only reams of improper statements targeting President Trump, his family, and his businesses, but also a decision to apply [New York law] against those targets in a completely unprecedented and…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.