Trump Ordered to Pay $354.9 Million in Fraud Case, Faces 3-Year Ban
New York Judge Rules Against Former President in Civil Fraud Case, Impacts Real Estate Empire
In a significant legal setback for Donald Trump, a New York judge has mandated a penalty of $354.9 million for fraudulent overstatements of his net worth, aimed at deceiving lenders. The decision, delivered by Justice Arthur Engoron following a contentious three-month trial in Manhattan, also includes a three-year ban preventing Trump from serving as an officer or director of any New York corporation. Trump, currently eyeing a return to the presidency, plans to appeal the ruling, as confirmed by his lawyer, Alina Habba.
The ruling overturns a prior order for the dissolution of companies overseeing Trump’s real estate holdings. Instead, an independent monitor and compliance director will be appointed to oversee the businesses. Justice Engoron, in his strongly worded decision, criticized Trump and the other defendants for their lack of contrition, stating, “Their complete lack of contrition and remorse borders on pathological.”
The lawsuit, brought by New York Attorney General Letitia James, alleges that Trump and his family businesses exaggerated his net worth by up to $3.6 billion annually over a decade to secure more favorable loan terms. Trump has dismissed the case as a political vendetta, while on social media, he labeled the decision as “ELECTION INTERFERENCE” and a “WITCH HUNT.”
The penalties also extend to Trump’s adult sons, Don Jr. and Eric, who are ordered to pay $4 million each. Allen Weisselberg, former Trump Organization CFO and a key figure in a separate criminal case, must pay $1 million and is banned for life from managing any New York company’s finances.
Justice Engoron’s decision, which includes a three-year restriction on Trump and his companies applying for loans from New York-chartered financial institutions, could have far-reaching consequences for Trump’s real estate empire. The judge cited past legal issues, including a 2022 criminal tax fraud conviction for the Trump Organization, as contributing factors to the stiff penalties.
The judgment, totaling over $450 million with interest, presents a significant blow to Trump’s financial standing. However, Trump’s ability to satisfy the judgment remains uncertain, with estimates of his net worth varying. While he could potentially sell assets or shares, securing loans might be challenging given the court’s findings of dishonesty regarding his wealth.
This development unfolds amid Trump’s lead in the race for the Republican nomination for the 2024 presidential election. The ongoing legal challenges, including four criminal cases, could further complicate his political aspirations.
In a separate civil case, a jury recently ruled that Trump must pay $83.3 million for defaming writer E. Jean Carroll. Trump faces additional legal battles in various jurisdictions, including charges related to hush money, mishandling classified documents, and attempts to overturn the 2020 election results.
The civil fraud case, marked by Trump’s defiant trial testimony, culminates in a decision that could have lasting repercussions on both his financial and political future.