Donald Trump and his adult sons have been found liable for fraud by a New York judge.
The judge also decided to cancel the Trump Organization's business certification.
This presents a major threat to the former president's financial empire as he seeks a second term.
The ruling responds to AG Letitia James' lawsuit seeking $250 million in damages, a Trump family ban from NY business officer roles, and a 5-year company transaction halt.
Judge Arthur Engoron's Monday ruling flatly rejects Trump's claims that he didn't inflate property values on financial statements.
A trial, set for next week, will determine the damages, while the full impact of Engoron's ruling remains uncertain.
Trump has been accused of inflating his Trump Tower triplex apartment by three times its size, overvaluing it by $114 million to $207 million.
Trump’s attorney Christopher Kise described the ruling as “completely disconnected from the facts and governing law.”