Donald Trump committed fraud for years while building the real estate empire that catapulted him to fame and the White House, a court has ruled.
Judge Arthur Engoron found that the former president and his company deceived banks and insurers by massively overvaluing assets and exaggerating his net worth on paperwork used in making deals and securing financing.
The judge found Trump, his company, and key executives repeatedly lied about his wealth on annual financial statements, resulting in rewards including favourable loan terms and lower insurance premiums.
Those tactics crossed a line and violated the law, the judge said, rejecting Trump’s argument that a disclaimer on the financial statements absolved him of any wrongdoing.
The ruling came after a civil lawsuit brought by New York’s attorney general, Letitia James.
Ms James sued Trump in September last year accusing him and his organisation of lying for a decade about asset values, including his Mar-a-Lago estate in Florida, his penthouse apartment in Trump Tower, and other office buildings and golf courses.
She had said his net worth had been inflated by as much as $2.23bn (£1.83bn) and as much as $3.6bn (£2.96bn) on annual financial statements given to banks and insurers.
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A trial is due on 2 October which could endure into December.
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Nancy Pelosi, the first woman in the Speaker’s office, has announced her retirement from American politics after a nearly 40-year career.
The 85-year-old, who has represented San Francisco since 1987, revealed her decision two days after Californian voters overwhelmingly approved “Proposition 50”, a state redistricting effort aimed at flipping five House seats to Democrats in the midterm elections next year.
“I will not be seeking re-election to Congress,” Pelosi said in a video address to voters.
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“With a grateful heart, I look forward to my final year of service as your proud representative.
“My message to the city I love is this: San Francisco, know your power,” she said. “We have made history. We have made progress. We have always led the way.”
“And now we must continue to do so by remaining full participants in our democracy and fighting for the American ideals we hold dear.”
Image: Nancy Pelosi at the Democratic National Convention in 2024. Pic: Reuters
Mrs Pelosi served as the 52nd Speaker of the House of Representatives from 2007 to 2011, and again from 2019 to 2023, and was the first woman elected to the role.
She was also the first woman to lead a major political party in either chamber of Congress, heading the House Democrats from 2003 to 2023.
During her second tenure as Speaker, the House twice impeached Donald Trump – in December 2019, and January 2021 – though the Senate acquitted him both times.
And in February 2020, during President Trump’s State of the Union address, she famously tore up her official copy of it, arguing “it was such a dirty speech”.
An architect of the Affordable Care Act, Mrs Pelosi has also been credited with quietly persuading Joe Biden to withdraw from the 2024 presidential race.
End of an era
Nancy Pelosi was a central figure during two of the most turbulent political periods – the Trump presidency and President Biden’s departure from the 2024 election.
During the Trump era, she emerged as the Democratic Party’s most visible counterweight to the administration.
She led the House through two impeachments and became was prime target for those who stormed the Capitol Building on January 6th 2021.
In 2024, her behind-the-scenes influence was decisive as Democrats confronted Joe Biden’s declining political position.
While careful in her public statements, her subtle signalling to leaders and donors accelerated his departure from the race.
From a wider perspective, her retirement marks the end of one of the most influential congressional careers in modern US politics.
As the first woman Speaker of the House, she shaped legislative priorities for two decades and her departure signals a generational shift within the Democratic Party.
Now her political contemporaries have paid tribute.
Former President Joe Biden said America “will always be grateful” to her.
He posted on X: “I often said Nancy Pelosi was the best Speaker of the House in American history – it’s why I awarded her the Presidential Medal of Freedom.
“When I was President, we worked together to grow our economy, create millions of jobs, and make historic investments in our nation’s future.”
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California’s Democrat Governor Gavin Newsom, said she “inspired generations” and “set the standard for what public service should be”.
While party colleague, Senator Adam Schiff, who also represents California, called her “the greatest Speaker in American history” and highlighted her “tenacity, intellect, strategic acumen and fierce advocacy”.
And Representative Don Beyer of Virginia, another Democrat, said she was “a major figure in American history”, a “barrier breaker”, and “one of our most brilliant and accomplished leaders”.
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0:29
“Why did you refuse the National Guard on January 6?”
First elected in 1987, she came into politics later in life, and has long resisted calls to step aside, turning questions about her future into spirited rebuttals.
But she’s faced new challenges in recent years and her decision to step down is not fully unexpected.
Last year she fractured her hip when she fell during a European trip, and was rushed to a military hospital for surgery.
And in 2022, her husband Paul Pelosi was gravely injured by a home intruder who beat him over the head with a hammer and demanded to know “Where is Nancy?”
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Nonetheless, she’s maintained a rigorous political schedule of public events and party fundraisers.
Now eyes will turn to the question of her successor, both at home in San Francisco, and in the US Congress where she plays a behind-the-scenes leadership role.
She’s already faced a potential primary challenge from Saikat Chakrabarti, a left-wing newcomer who played a part in the rise of Alexandria Ocasio-Cortez – another rising star in the progressive firmament.
The Mamdani victory is historic for him, a dreamy American journey for an immigrant rising to the top, and, along with the governor victories in New Jersey and Virginia, it undoubtedly represents a gear shift for the Democrats who have been lost in a Trumpian vortex since Joe Biden’s disastrous presidential debate 18 months ago.
All of this is true. And in that sense, it was of course a very good night for the Democratic Party. Winning is clearly better than losing.
But what if Mamdani is actually a poison chalice for the Democrats? They are drinking this socialist’s champagne now because they finally have some momentum.
But he isn’t a champagne socialist. He is a purist socialist; proudly one.
With his skilful communication skills and his apparent authenticity, he has energised New York City. And no wonder. The alternative was the flawed, compromised Andrew Cuomo. Mamdani offered hope for a deeply liberal city that’s lost in Trump World.
Trumpendorsed Cuomo not because he agrees with Mamdani’s own tagline: “I am Trump’s worst nightmare…”
Trump endorsed Cuomo because he knew that it would probably increase Mamdani’s share of the vote – and it did.
Why would Trump do this? Maybe because he thinks Mamdani is the perfect foil for him.
Image: Trump’s endorsement of Andrew Cuomo wasn’t all it seemed on the surface. Pic: AP
What Trump can get out of apparent defeat
Mamdani’s victory gives Trump and his allies two things.
First, they can sit back and watch the Democrats squabble about whether Mamdani’s leftward Democratic socialism is the future of their party. And be in no doubt, they will.
Second, they can warn centrists and right-leaning folk: ‘Look, the Democrats really are socialists…’. The president continues to frame him as a “communist”.
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2:33
And so it begins, the Trump/Mamdani rivalry…
The Democrats may choose the Mamdani lane and stick with it, especially if he is successful in New York. But the Big Apple is not remotely representative of America.
Beyond New York City, Mamdani is, history would suggest, off the spectrum when it comes to electable Democratic Party candidates – America remains a conservative society; political spectrums here naturally tack right.
Team Trump knows all this, so they’ll relish the prospect of the Democratic Party machine (which has form in picking the wrong candidate) being lured by Mamdani-mania.
Cost of living a key issue
Beyond that, there is a vital takeaway for Trump from this mini and not wholly representative referendum on his presidency so far.
Many ordinary Americans are still hurting economically, big time.
The Democrats won in New York, New Jersey and Virginiabecause their candidates all focused on kitchen table issues.
The president clearly recognises this, to an extent. “Day by day, we’re going to make America affordable again,” he said after the Mamdani victory.
But he was speaking not to the people who are feeling the squeeze. Instead, he chose to mark a year since he was elected with a speech to a wealthy business crowd in Miami. Safe crowd, safe state, safe space.
Image: Trump perhaps realises he’s failing on one key promise. Pic: AP
JD Vance’s telling reaction
Maybe the most telling thing to come out of the past 24 hours in American politics was from the vice president.
In a social media post, JD Vance first warned followers not to overreact to the results.
He then went on to offer his own notable interpretation of the Democratic Party victories.
“We need to focus on the home front.” he wrote. “The president has done a lot that has already paid off in lower interest rates and lower inflation, but we inherited a disaster from Joe Biden and Rome wasn’t built in a day.
“We’re going to keep on working to make a decent life affordable in this country, and that’s the metric by which we’ll ultimately be judged in 2026 and beyond.”
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Two points: first, that Vance thinks that Trump needs to get back to his base. Ten months of presidential jet-setting and global-conflict-solving may have been necessary, but it won’t spell victory in the midterms next year or beyond.
The second point – Vance is so clearly in it for the long game. The “beyond” he talks about has him at its centre.
I’m not sure Vance would have chosen a Miami arena full of business leaders to mark a year since the election. The business and investment community is happy and wealthy.
I think Vance would have been with the other America, where people are feeling the squeeze still.
Trump continues to talk about the economy being “Biden’s economy”. Vance seems to be hinting at the inevitable – that at some point they need to own it and to fix it. They need to make people feel better off.
Vance wants to run and to win in 2028, and that fight begins now.
I swear we saw a vision of Zohran Mamdani watching Sky Sports News transfer deadline day coverage, top on, texting the group chat about late medicals and beating his chest, still, about Thierry Henry to Barcelona.
Yes, New York’s new mayor is an Arsenalsupporter. He told me as much when I introduced myself from Sky News.
He said in his youth he’d been a viewer of Sky’s transfer deadline day, when fans watch live coverage of their club’s transfer activity.
In a “morning after” news conference, it was pleasant chat – evidence of the everyman anti-politician who’d sold personality with the politics. If it’s a game they all play, some do it better than others.
Image: Mamdani, an Arsenal fan, has plenty of reasons to smile right now. Pic: AP
But then there was my question to him. What message did his victory send to his own Democratic Party, members of which have been cool on his left-wing politics?
Also, what did it mean to Donald Trump? He bit on the Trump part of the question but dodged the other bit that alluded to a reluctant Democratic old guard.
It is a pressing issue for a party clutching for a strategy to beat Trump, and yet pushing away the left-wing Mamdani, one of their own, who found the formula in New York.
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4:37
Mamdani: ‘Victory a lesson for Trump’
Democrats have a big square to circle
Clearly, it isn’t a party discussion to be aired publicly, which means there’s no coherent strategy.
Privately, however, it’s a circle they must surely square: how to harness the strategy and success of a leftist agenda that landed in New York, and make it work across America.
Mamdani’s victory will build influence on the left of the movement – and its tangible success to counter a party establishment dismissing its progressive wing as toxic to the brand.
Mamdani held his victory news conference in the shadow of the “Unisphere”, a representation of the Earth in Flushing, Queens.
The caption encouraged by his handlers was, presumably, something to do with the “world at his feet”. “World of difficulty” would be an alternative that might not find an argument.
For the Arsenal supporter at the heart of US politics, there is no easy win – even in the home games.