Donald Trump ordered to pay $350 million in New York civil fraud case
A New York judge ruled Friday that Donald Trump must pay a $354.9 million fine for defrauding lenders by fraudulently overstating his net worth, dealing another legal blow to the former US president in a civil case. Felt, which puts his real estate empire at risk.
In a sharply worded decision issued after a contentious three-month trial in Manhattan, Justice Arthur Angoron also banned Trump, who is running to seek reelection to the presidency this year, from the New York City Court for three years. Banned from serving as an officer or director of any corporation. Trump’s lawyer Alina Habba vowed to appeal.
Angoron rescinded his earlier September decision to “disintegrate” the companies that control the pillars of Trump’s real estate empire, saying on Friday it was no longer necessary because he would appoint an independent candidate to oversee Trump’s businesses. Appointing monitors and compliance directors.
Trump and the other defendants in the case, Engoron wrote in the decision, “are unable to admit the error of their ways.”
Angoron wrote, “His complete lack of remorse and remorse borders on the pathological.” “Instead, they adopt a ‘see no evil, hear no evil, speak no evil’ posture that the evidence belies.”
The lawsuit filed by New York Attorney General Letitia James accused Trump and his family businesses of inflating their net worth by more than $3.6 billion a year over a decade to fool bankers into giving them better loans. Trump, who faces criminal charges in four other cases, has called the trial a political vendetta by James, a Democrat.
In posts on his social media platforms, Trump called Angoron “crooked,” James “corrupt,” and the case against him “election interference” and a “witch hunt.”
“This ‘decision’ is a complete sham,” Trump wrote. “We cannot allow injustice to persist.”
Angoron, who decided the case without a jury, barred Trump and his companies named in the lawsuit from applying for loans from any financial institution chartered in New York for three years, preventing them from obtaining loans from major U.S. banks. Their capacity may be reduced.
The judge said Trump and his companies’ past run-ins with the law were part of the reason for the harsher penalty. The Trump Organization was found guilty of criminal tax fraud in 2022. Two other Trump-run entities had previously been charged with wrongdoing brought by New York state.
Trump’s adult sons, Don Jr. and Eric, were also defendants in the case. The judge ordered them to pay $4 million each. His lawyer Clifford Robert described the verdict as a “gross injustice” and said he believed it would be overturned on appeal.
Former Trump Organization CFO Allen Weisselberg, who pleaded guilty to tax fraud in a separate criminal case, was ordered to pay $1 million and barred for life from managing the finances of any New York company Went.
James said the fines paid by all defendants total more than $450 million, including interest.
“Donald Trump is finally facing accountability for his lying, deceit, and shocking fraud,” James said in a statement. “Because no matter how big, rich or powerful you think you are, no one is above the law.”
presidential race
The judge’s decision could deal a major blow to Trump’s real estate empire, even as businessman-turned-politician Trump leads by a wide margin in the race for the Republican nomination to challenge Democratic President Joe Biden in the November 5 US election.
During defiant and winding trial testimony in November, Trump acknowledged that some of his assets were mispriced, but insisted that banks were obligated to do their due diligence.
Engoron criticized Trump for his behavior during his testimony – and wrote that the testimony hurt his cause.
“Donald Trump rarely answered the questions asked, and he often gave long, irrelevant speeches on issues beyond the scope of the trial,” the judge wrote. “His credibility was seriously compromised by his refusal to answer questions directly or in some cases.”
Trump may have to collect his share of the entire judgment plus interest during the appeal. Trump can also post a small amount of money with collateral and interest by securing a type of loan called an appeal bond. But Angoron may have trouble finding willing lenders after it is discovered that he has lied to the banks about his assets.
It is unclear how much access to cash Trump has, and estimates of his fortune vary, with Forbes estimating his net worth at $2.6 billion. Trump testified in a deposition last year that he had about $400 million in cash.
Trump’s stake in the parent company of his social media app Truth Social is worth about $4 billion, based on shares in the black-check acquisition vehicle with which he has agreed to a business merger. According to a regulatory filing, Trump will be allowed to sell shares in the combined company six months after the merger is completed. US financial regulators gave the green light to the deal this week.
Although Trump could also sell parts of his real estate portfolio to satisfy the judgment, it is unclear how much his holdings are worth, and it may take time to sell them. According to some legal experts, Trump would not be able to use campaign funds to pay the judgment because the case was not related to his campaign or his conduct as president or political candidate.
In another civil case, a jury last month found that Trump must pay $83.3 million for defaming author E. Jean Carroll by denying her claims that he raped her decades ago. Trump has vowed to appeal. Another jury ordered Trump to pay Carroll $5 million in a separate case last year.
criminal case
Trump is being indicted on four criminal counts, including one related to hush-money payments to a porn star in New York. On Thursday, the judge overseeing that case set a hearing date for March 25. Trump has also been charged in Florida over his handling of classified documents after leaving office and in Washington and in Georgia over his efforts to overturn his 2020 election loss.
Trump has pleaded not guilty in those cases.
During the civil fraud case, Trump lashed out in the courtroom on January 11 – the day of closing arguments – against the judge and James, declaring his innocence. “You have your own agenda,” Trump scolded Angoron, who told Trump’s lawyer to “control your client.” During the trial, the judge fined Trump $15,000 for twice violating the restraining order from holding court employees in contempt.
Angoron ruled in September that Trump’s financial statements were fraudulent, shifting the focus of the lawsuit to how much Trump should pay in penalties.
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