Former U.S. President Donald Trump has been hit with a $354.9 million penalty in a civil fraud case for fraudulently overstating his net worth to dupe lenders, leading to a 3-year ban from serving as an officer or director of any New York corporation, a decision that shakes the foundations of his real estate empire.
The case, brought forward by New York Attorney General Letitia James, accused Trump and his family businesses of exaggerating his net worth by as much as $3.6 billion annually over a decade. This deception, the lawsuit claimed, was a calculated move to mislead bankers and secure more favorable loan terms.
In addition to the financial penalty, the court has imposed a three-year ban on Trump, prohibiting him from serving as an officer or director of any New York corporation. This ban could potentially disrupt Trump’s bid to regain the presidency this year. Trump’s lawyer, Alina Habba, has pledged to appeal the decision.
Justice Arthur Engoron’s ruling also rescinded his previous order from September that called for the “dissolution” of companies controlling Trump’s real estate empire. Instead, an independent monitor and compliance director will be appointed to oversee Trump’s businesses.
The judge’s decision was scathing in its criticism of Trump and the other defendants. He wrote, “Their complete lack of contrition and remorse borders on pathological,” and accused them of adopting a ‘See no evil, hear no evil, speak no evil’ posture that the evidence contradicts.
Trump, who faces criminal charges in four other cases, has dismissed the lawsuit as a political vendetta by James, a Democrat. He took to his social media platform to label Engoron as “crooked,” James as “corrupt,” and the case against him as “ELECTION INTERFERENCE” and a “WITCH HUNT.”
Reacting to the ruling, Trump’s attorney, Chris Kise, expressed his disapproval, stating, “This is truly a joke. Indeed, it is shocking that President Trump has been forced to pay millions for a Monitor to prove what he has said from the outset, namely, there is no financial reporting misconduct, no fraud and simply no basis for this abusive process to continue.”
The ruling also restricts Trump and his companies named in the suit from applying for loans from any financial institution chartered in New York for three years. This could significantly limit his ability to obtain credit from major U.S. banks.
The penalties paid by all defendants, including Trump’s adult sons, Don Jr. and Eric, who were ordered to pay $4 million each, and former Trump Organization CFO Allen Weisselberg, who was ordered to pay $1 million and barred for life from managing any New York company’s finances, totaled more than $450 million, including interest.
In a recent development, the judge has issued a ruling in the New York civil fraud case against former President Donald Trump. The lawsuit brought by New York Attorney General Letitia James is seeking $370 million in damages. The judge had already found Trump is liable for fraud in the civil case. The case goes to the heart of Trump’s image as a successful billionaire and includes accusations of fraud regarding his Trump Tower apartment, Mar-a-Lago estate, and several golf courses, among others.
The New York attorney general also asked the court to bar Trump and some of the co-defendants from the real estate business in New York and being able to apply for a loan from banks registered in the state, among other bans that could significantly impact him and his companies.
The ruling could have far-reaching implications for Trump’s real estate empire and his political ambitions. Despite the legal challenges, Trump leads by a wide margin in the race for the Republican nomination to challenge Democratic President Joe Biden in the Nov. 5 U.S. election.
The case continues to unfold, and it remains to be seen how this ruling will impact Trump’s future endeavors, both in business and politics.