A New York judge has ruled that Donald Trump “repeatedly” misrepresented his wealth by hundreds of millions of dollars to banks and insurers.
The decision resolves the key claim made by New York’s attorney general in her civil lawsuit against the former president.
It is a major blow for Mr Trump before the case goes to trial next Monday.
An attorney for Mr Trump called the judge’s decision “a miscarriage of justice” in a statement on Tuesday evening.
Attorney General Letitia James sued Trump last September, accusing him, his two adult sons and the Trump Organization of lying about his net worth and asset values between 2011 and 2021.
Ms James claimed the defendants issued false business records and financial statements in order to get better terms on bank loans and insurance deals, and to pay less tax.
In a trial that will now resolve six remaining claims in her suit, she will seek $250m in penalties and a ban on Trump doing business in his home state.
The non-jury trial is scheduled to begin on October 2 and last until at least December.
