The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

One of the many lawsuits that the Trump Organization and members of the Trump family have faced allegations that they engaged in an illegal pyramid scheme. Attorneys for the company have tried to get the class action lawsuit placed on hold, but Judge Lorna G. Schofield — a federal judge in New York — has refused to stay the case.

In Law & Crime, reporters Matt Naham and Aaron Keller explain, "The class action plaintiffs allege that the Trump family business promoted a multi-level marketing or pyramid scheme known as ACN Opportunity, LLC. ACN, the plaintiffs said, was a 'get-rich-quick scheme' that relied on Trump and his family (conning) each of these victims into giving up hundreds or thousands of dollars,' in violation of various state laws."

Members of the Trump family named in the lawsuit include President Donald Trump and three of his children: Donald Trump, Jr., Eric Trump and White House Senior Adviser Ivanka Trump.

According to Naham and Keller, "The plaintiffs claimed that the Trump family falsely endorsed and promoted ACN by insisting that the enterprise 'offered a reasonable probability of commercial success' — even using 'The Celebrity Apprentice' to draw them in."

The plaintiffs first filed the lawsuit in October 2018, alleging "racketeering and conspiracy to racketeer." And in January 2019, attorneys for members of the Trump family requested that the case be thrown out altogether — which didn't happen, although the "racketeering and conspiracy to racketeer" claims were dismissed.Trump Organization lawyers were hoping that Schofield, who was appointed by former President Barack Obama, would put the case on hold. But the Southern District of New York judge ruled that the lawsuit would not be stayed.

The 64-year-old Schofield, Naham and Keller report, applied the "traditional standard" for determining whether or not to stay a case.

"The first factor is whether the parties applying for the stay — the Trumps and ACN — are likely to succeed on the merits," Naham and Keller note. "Here, Schofield ruled that they are not…. The second of the four factors for a stay, irreparable injury, did not outweigh the defendants' loss on the first factor, the judge ruled. The third factor, 'substantial injury' to the plaintiffs, factored 'lightly against a stay.' The fourth factor, 'public interest' weighed 'slightly in favor of a stay,' the judge ruled."

Schofield, in her ruling, asserted, "As a private business dispute, the action does not give rise to a public interest in the lawsuit. That one of the defendants has since assumed a position of national prominence does not create the type of public interest typically found to weigh against a stay."

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Reprinted with permission from DailyKos

The federal judge overseeing the Oath Keepers conspiracy case in the Jan. 6 Capitol insurrection ordered their trial delayed this week, primarily because of the overwhelming amount of evidence still being produced in their cases. Though the delay was expected, its reasons are stark reminders that Jan. 6 will be one of the most complex prosecutions in history and that the investigation remains very active as more evidence piles up. There are likely some very big shoes still to drop.

Keep reading... Show less

Reprinted with permission from DailyKos

COVID-19 is now the second-leading cause of death in the United States, despite the availability of safe, effective, and free vaccines. The promise of those vaccines showed itself when they first became widely available and COVID-19 dropped to be seventh on the list of causes of death.
Keep reading... Show less
x
{{ post.roar_specific_data.api_data.analytics }}