Why Are So Many Claiming Trump's Cheating in 'Civil Fraud' Trial is a Victimless Crime?
Trump did it, Kevin O'Leary of 'Shark Tank' Says It is Okay, So What's the Real Truth...?
Above is Kevin O’Leary in discussion with Laura Coates on CNN - claiming Trump engaged in regular business practices….
Despite options under criminal law, charging Trump under New York’s Civil Fraud Statute, afforded Attorney General James the ability to pursue Trump’s finances and real estate holdings - the subject of the fraud - instead of seeking incarceration as criminal fraud charge and conviction could do. She went after his lies on his mortgage applications, loans and tax payments, to disgorge him from the wrongful profits he made, the money he wrongly obtained by doctoring legal documents and falsifying valuations.
According to the FBI, White Collar Crimes are not violent, but they are also not victimless as some would claim. As we have seen with numerous corporations, White-collar crimes can destroy a company, wipe out a person's life savings, cost investors billions of dollars, and erode the public's trust in institutions.
Many Americans Have Seen Financial Scandals Unfold Before Their Eyes
One of the most infamous white collar crimes was the Enron scandal, where top executives used accounting loopholes and special purpose entities to hide debt and inflate profits. Sound familiar? Once the fraud was exposed (2001), Enron filed in bankruptcy court, the result of which was $74 billion loss that hit investors hard, combined with thousands of jobs lost. As a result of the Enron demise, the once prestigious accounting firm working with it, Arthur Andersen was dissolved.
All of this hurt so many in the investing and the working public through loss of jobs, and monies tied to them (including loss of their private pension/employee contribution plans), that major changes in corporate governance and accounting regulations resulted.
And let’s not forget Bernie Madoff and his Ponzi (pyramid) scheme. He defrauded investors out of $65 billion - using the pyramid technique, to use new money from new investors to pay off earlier investors. That worked for some time, until the 2008 financial crisis, causing his scheme to collapse, and leaving many investors completely destitute and causing mistrust in the entire financial markets. Much of these financial crimes came under the auspices of the SEC, Securities and Exchange Commission - landing Madoff in federal prison for his crimes (he died in 2021 in federal prison).
According to the FBI, Mortgage and Financial Institution Fraud is Not a Victimless, - it is a Crime - Despite What Kevin O’Leary of Shark Tank Had to Say on the Subject.
Where’s the Fraud?
Financial institution fraud happens when criminals target banks, credit unions, and other financial institutions.
Mortgage fraud happens when someone lies to influence a bank's mortgage decision or if a distressed homeowner is the victim of a fraud.
There are two areas of mortgage fraud:
Fraud for housing: This fraud happens when borrowers lie about their incomes or assets on a loan application or influence an appraiser to manipulate a property's value.
Fraud for profit: This type of fraud involves professionals in the home buying process stealing cash and equity from lenders and homeowners.
The FBI works with partners to investigate mortgage and financial institution fraud cases. The FBI participates in task forces that share intelligence, de-conflict cases, and create joint investigations.
Seizing and Selling Property Isn’t Easy Either
Seizing and Selling Trump Property for New York Attorney General Letitia James would be no easy task - and the return to the State of New York would be subject to the values gleaned from their sale - minus bank mortgages and secured debts. Not to mention the office market post-Covid is down considerably, which would fetch lower bids from investors, even in a busy economy and retail market like New York.
So What’s the Difference by Filing an Appeal or Obtaining a Bond for the Money?
Filing an appeal usually doesn’t hold off enforcement of a judgment - here $464 million plus interest accruing. But that is automatically paused if the person or entity posts a bond covering what is owed. And now that the NY Appellate Division has lowered the amount of the bond to $175 million if that bond is secured, and produced within 10 days - Trump can avoid seizure of his assets, while his appeal of the fraud case is moving forward.
Remarkably, a “stay of enforcement” was granted by the Appellate Division allowing Trump and named appellants to temporarily do business in NY - with oversight - enabling him to garner the bond (and potentially engage in additional frauds) while awaiting hearings and determination on the final appeal. Contrary to Kevin O’Leary’s “proffer” that lying or obfuscating on your mortgage valuations and applications such as Trump did is victimless - and hence not a crime - because the banks got paid back - so no harm no foul. Yet, it is noteworthy that people in NY and all across the country, can and do go to jail for mortgage fraud, for falsifying information on their mortgage applications.
Not only is mortgage fraud a state crime, mortgage fraud is a federal crime carrying civil and criminal penalties for at both the state and federal level. It can be severe and may include convictions and prison time, restitution payments, state fines, and/or probation. So Mr. O’Leary, you are wrong that lying on your mortgage application and valuations is a victimless crime (as defaults and bad investments drive up the costs for everyone else - creating a shortage of funds to be lent, and heightens the criteria for approval for everyone else). And so, it shall be noted for the record the next time Kevin O’Leary goes looking for real estate investment money - someone in the state or federal government, or the FBI will be watching very closely.