Verdict in Trump’s fraud trial: $364M penalty
A New York judge ruled Friday against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president’s wealth.
Judge Arthur Engoron issued his decision after a 2½-month trial that saw the Republican presidential front-runner saying under oath that he was the victim of a rigged legal system.
The stiff penalty was a victory for New York Attorney General Letitia James, a Democrat, who sued Trump over what she said was not just harmless bragging but years of deceptive practices as he built the multinational collection of skyscrapers, golf courses and other properties that catapulted him to wealth, fame and the White House.
Trump’s lawyers had said even before the verdict that they would appeal.
In delivering Trump verdict, the judge backed away from a prior decision that would have dissolved former president’s companies. But the judge barred Eric Trump and Donald Trump Jr. barred from serving as an officer or director of any New York corporation for 2 years.
The judge also barred Trump from holding executive office at a New York company and getting loans from New York banks for three years.
Engoron has already ruled that the former president inflated his wealth on financial statements that were given to banks, insurers and others to make deals and secure loans.
James was seeking $370 million and a ban on Trump and other defendants from doing business in the state. A penalty like that could potentially wound the real estate empire that helped Trump craft his image as a savvy billionaire businessman and vaulted him to fame and the White House.
Testimony was made by 40 witnesses, including Trump. Closing arguments were held Jan. 11.
The judge was deciding the case because juries are not allowed in this type of lawsuit and neither James’ office nor Trump’s lawyers asked for one.
It has already been a big week in court for Trump. On Thursday, a different New York judge ruled that Trump will stand trial March 25 on charges that he falsified his company’s records as part of an effort to buy the silence of people with potentially embarrassing stories about alleged infidelity.
Trump says he is innocent.
If the schedule holds, it will be the first of his four criminal cases to go to trial.
James’ office has estimated that Trump exaggerated his wealth by as much as $3.6 billion. State lawyers contend Trump used the inflated numbers to get lower insurance premiums and favorable loan terms, saving at least $168 million on interest.
Trump’s testimony
The Republican presidential front-runner testified Nov. 6 that his financial statements actually understated his net worth and that banks did their own research and were happy with his business. During closing arguments in January, he decried the case as a “fraud on me.”
Engoron was deciding six claims in James’ lawsuit, including allegations of conspiracy, falsifying business records and insurance fraud.
Before the trial, Engoron ruled on James’ top claim, finding that Trump’s financial statements were fraudulent. As punishment, the judge ordered some of his companies removed from his control and dissolved. An appeals court has put that on hold.
Because it is civil, not criminal in nature, there is no possibility of prison time.