A New York judge has handed down a significant ruling in a civil fraud case against former President Donald Trump, compelling him to pay nearly $355 million in penalties. This decision by Judge Arthur Engoron, outlined in a comprehensive 92-page document, follows weeks of closing arguments that concluded a lengthy trial, marked by frequent criticism from Trump towards both the judge and the prosecuting attorney.
In 2022, New York Attorney General Letitia James filed a lawsuit against Trump, alleging that he manipulated his net worth on crucial financial statements to obtain favorable tax and insurance benefits. The documents, providing details on the Trump Organization’s assets, were submitted to banks and insurers to secure loans and deals, presenting a case for fraud according to the state.
The potential financial burden on Trump and his business, including interest, may surpass $450 million, as indicated by the New York attorney general’s office. Engoron held Trump, the Trump Organization, and key executives, including his adult sons, liable for fraud before the trial began, as there was no jury present.
The imposed fine is slightly less than the $370 million sought by the attorney general’s office, and it also entails a three-year ban preventing Trump from engaging in New York business activities. Furthermore, Trump’s adult sons, Donald Trump Jr. and Eric Trump, were individually ordered to pay over $4 million each, accompanied by a two-year prohibition from serving as officers or directors of any New York corporation or legal entity.
Former Chief Financial Officer Allen Weisselberg faced a $1 million penalty, along with a three-year ban from New York business. Both Weisselberg and former controller Jeffrey McConney were also prohibited for life from serving in the financial control function of any New York corporation or business entity. Additionally, the judge extended the term of the independent monitor overseeing Trump’s business for three years and appointed an “Independent Director of Compliance.”
However, the judge overturned a pre-trial decision that ordered the cancellation of the defendants’ business certificates, stating that the order could potentially be renewed.
In response to the ruling, Attorney General Letitia James hailed it as a “tremendous victory” for the state and the nation, emphasizing the importance of holding powerful individuals accountable for dishonest practices that impact hardworking citizens.
“When powerful people cheat to get better loans, it comes at the expense of honest and hardworking people. Now, Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud,” James remarked, emphasizing that no one is above the law.
Despite the substantial penalties, Trump’s legal team decried the ruling. Alina Habba, Trump’s lawyer, labeled it a “manifest injustice” and the outcome of a “multi-year, politically fueled witch hunt.” Chris Kise, Trump’s lead lawyer, characterized the case as an “unjust political crusade” against a leading presidential candidate and criticized the process as unfair and tyrannical. Kise confirmed that Trump would appeal the decision.
The trial spanned over two months, featuring testimony from 40 witnesses, including Michael Cohen, a former fixer for Trump, top Trump Organization executives, Trump’s adult children, and the former president himself. Trump’s defense rested on the argument that there was no fraud, with Deutsche Bank executives testifying that they conducted their own due diligence and found no evidence of fraud when working with the Trump Organization.
The strained relationship between Trump and Judge Engoron was evident early on when the judge ruled on Trump’s fraud liability. During Trump’s testimony in November, he launched attacks on the judge and Attorney General James, referring to them as “frauds,” “political hacks,” and “Trump haters.” Engoron had to admonish a Trump lawyer at one point, reminding him that the trial was not a political rally.
The financial ramifications of the $354.8 million judgment, coupled with another $83.3 million judgment against Trump for defamation, are expected to impact his estimated net worth significantly. Forbes estimates Trump’s wealth at $2.6 billion, while the Bloomberg Billionaires Index values him at $3.1 billion. These judgments could potentially result in a loss of 13 percent or more of his estimated net worth if these figures hold true.
Legal fees are also mounting for Trump, with approximately $50 million spent on legal consulting in 2023 by his fundraising committees. Notably, more than $18 million of this amount was allocated to lawyers Chris Kise, Alina Habba, and Clifford Robert, who represented Trump in the fraud case and other legal matters.
As Trump faces increasing legal challenges, including criminal cases and impending appeals in civil cases, the financial and legal implications of these recent judgments add another layer of complexity to his post-presidential life.