New York Judge Orders Trump and Organization to Pay $364 Million in Civil Fraud Case

In a significant ruling, a New York judge has ordered former President Donald Trump and executives of the Trump Organization to pay over $364 million in a civil fraud case, marking a victory for New York Attorney General Letitia James following a comprehensive three-year investigation.

Judge Arthur Engoron’s decision, issued on Friday, directs Trump and his flagship organization to bear the majority of the financial penalty, amounting to nearly $355 million. Additionally, Trump’s sons, Eric Trump and Donald Trump Jr., are each held liable for $4 million, while Allen Weisselberg, a former executive of the Trump Organization, is accountable for $1 million. With interest factored in, the total exceeds $450 million, as stated by the attorney general’s office.

In his court filing, Engoron criticized the defendants’ lack of remorse, describing their behavior as bordering on pathological. He highlighted the accusation of inflating asset values for financial gain, deeming it a venial rather than mortal sin, yet noted the defendants’ refusal to acknowledge their wrongdoing.

Trump responded to the decision by labeling it a “Complete and Total SHAM” in an emailed statement, reiterating his belief that the justice system is politically biased against him.

Conversely, Attorney General James hailed the ruling as a triumph for justice. She asserted that the outcome underscores the principle that all individuals, including former presidents, are subject to the same rules.

“This is a tremendous victory for this state, this nation, and for everyone who believes that we all must play by the same rules — even former presidents,” James stated in her declaration.

Judge Imposes Business Restrictions on Trump and Co-Defendants in Fraud Case

The judge also imposed restrictions on Trump and his co-defendants’ business activities in New York. Trump and his companies are barred from holding officer or director positions in any New York business or applying for loans for a period of three years. Similarly, his sons are subject to limitations on assuming leadership roles for two years.

While Jeffrey McConney, a former controller of the Trump Organization and a defendant in the case, wasn’t ordered to pay any monetary penalty, he and Weisselberg are permanently forbidden from serving in financial control roles in any New York corporation or similar business entity registered or licensed in the state.

Judge Engoron emphasized that the court’s role is to interpret the law and apply it to the facts of the case, with a focus on safeguarding the integrity of the financial marketplace and thereby protecting the public.

This ruling comes at a pivotal moment for Trump, who is currently the leading contender for the Republican presidential nomination. Engoron’s decision coincides with another judge setting the date for what could be Trump’s inaugural criminal trial, concerning hush money payments made during the 2016 election.

Trump is facing a total of 91 state and federal charges, some of which pertain to his attempts to retain office after losing the 2020 presidential election to Joe Biden. Despite the charges, Trump’s popularity among his supporters remains largely unscathed. If anything, the charges seem to have bolstered his standing, potentially setting the stage for a rematch with Biden.

Trump and Sons Accused of Deliberate Fraud in Asset Valuation Scheme

The lawsuit alleges that from 2011 to 2021, Donald Trump and his organization fabricated over 200 false valuations to artificially inflate his net worth by billions of dollars, aiming to secure more favorable business, insurance, and banking deals. Engoron had previously determined fraud and held the former president, his sons, and other executives responsible.

During the trial, arguments centered on whether the values of prominent Trump properties like Trump Tower and 40 Wall Street were intentionally inflated. Evidence presented included spreadsheets and signed financial statements. For instance, discrepancies in the square footage of Trump’s Manhattan triplex were highlighted, with documents suggesting a significant increase over time.

Trump, along with his sons Donald Jr. and Eric, and daughter Ivanka (not a defendant), testified regarding their roles in the valuation process and their involvement in the Trump Organization. Trump claimed the estimates were conservative and attributed the statements’ preparation to others, while his sons also cited reliance on external sources despite evidence suggesting their approval.

In their closing statements, Trump’s legal team reiterated that the family members were not aware of or involved in the creation, preparation, or utilization of fraudulent financial statements.

Former Trump Allies Testify in Fraud Case

Key witnesses in the trial included former Trump associates such as Michael Cohen and Weisselberg, who was also a defendant.

Cohen testified that he and Weisselberg were tasked with manipulating various asset classes to inflate their values to meet Trump’s desired figures.

Weisselberg, on the other hand, claimed he couldn’t recall whether he discussed the financial statements with Trump during their finalization.

The ruling, issued on Friday, coincides with Trump’s ongoing presidential campaign. It’s expected that he will appeal the decision, as he has done in previous cases where he faced legal setbacks. Resolving the case and any potential financial penalties may take years.