New York fraud case: Donald Trump ordered to pay $354 million fine, millions more in interest
Former President Donald Trump and the Trump Organization have been ordered by Judge Arthur Engoron to pay $354 million in fines as part of a New York civil fraud case. The judgment, totalling $453.5 million with interest, also includes bans on seeking loans and corporate roles in New York for Trump and key associates
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FollowFormer United States President Donald Trump and the Trump Organization have been ordered by a judge to pay $354 million in fines as part of their New York civil fraud case. This sum, including pre-judgment interest, surges to $453.5 million. Moreover, the ruling by Judge Arthur Engoron entails a three-year prohibition on seeking loans from financial institutions in New York and a three-year ban on Trump serving as an officer or director of any New York corporation.
The 92-page judgment represents one of the most significant corporate sanctions in New York's legal history. Despite Trump's vow to appeal, the decision stands firm.Â
Allen Weisselberg, the former chief financial officer of the Trump Organization, and Jeffrey McConney, former corporate controller, face similar bans on serving in corporate roles in New York. The ruling, which brands their conduct as unreliable for managing business finances, explicitly prohibits their involvement in financial control functions.
Engoron's order extends restrictions to Trump's sons, Eric Trump and Donald Trump Jr., barring them from corporate officer or director roles in New York entities for two years. Each must also pay over $4 million in penalties, with Weisselberg facing a $1 million penalty.
Trump, speaking outside Mar-a-Lago, lambasted the judge and characterized the case as a "witch hunt," asserting their intention to resume business activities despite the ruling's impact.
In his scathing rebuke, Judge Engoron criticized the defendants' lack of remorse, citing overwhelming evidence of falsified financial data presented to lenders. The ruling elucidates how Trump and his associates inflated asset values to secure favorable deals, perpetrating what Engoron described as "frauds" that "shock the conscience."
New York Attorney General Letitia James hailed the decision as a triumph for accountability, asserting that no one, regardless of status, is above the law. Trump's attorney, Alina Habba, condemned the judgment as unjust and politically motivated, affirming plans for an appeal.
The Trump Organization's spokesperson echoed similar sentiments, denouncing the ruling as a "miscarriage of justice" and warning of its implications for New York's business landscape.
James initiated the civil suit in 2022, seeking significant penalties and restrictions on Trump's business operations in the state. Despite Trump's assertions of a rigged trial, the judge largely validated James' claims of financial misconduct, culminating in substantial penalties for Trump and his associates.
The trial, spanning from October to January, scrutinized allegations of falsified financial records, insurance fraud, and conspiracy. While Trump may pursue an appeal, the financial toll of posting substantial appeal bonds underscores the ramifications of the judgment.
Engoron's earlier ruling in September already established Trump's liability for fraud, reinforcing the state's contention of misrepresented wealth and inflated property valuations.
Throughout the trial, Trump and his children testified, attempting to deflect blame onto accountants while asserting the accuracy of financial statements. However, the judge's order highlights Trump's evasiveness and lack of credibility under oath.
As Trump plans his legal recourse, the implications of this ruling reverberate through both legal and political spheres, marking a significant chapter in Trump's legal battles and the pursuit of accountability for corporate misconduct.
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