Former President challenges major financial penalty and bans
In a landmark decision, ex-President Donald Trump has been ordered to pay New York a nearly $355 million fraud fine. This ruling comes after findings that he misrepresented the value of his assets. Judge Arthur Engoron also imposed a three-year ban on Trump from serving as a company director and securing loans from state banks.
Despite the severity of these penalties, Trump’s companies avoided dissolution, which could have led to bankruptcy. From his Florida estate, Trump voiced his intention to appeal. He labelled the ruling a political attack, lamenting it as a dark day for the nation.
Judge Engoron cited previous misconduct, including a 2022 tax fraud conviction against the Trump Organization, to justify the hefty fines. He described the defendant’s lack of remorse as almost “pathological”. The judge’s 92-page verdict underscored the shocking nature of the frauds.
To prevent future infringements, Engoron mandated an independent monitor and a compliance director for Trump’s empire. He also ordered interest on fraudulently obtained profits, potentially raising the total to $450 million. Trump’s sons, Donald Jr and Eric, and former CFO Allen Weisselberg face their own penalties and business restrictions in New York.
The civil case, led by New York Attorney General Letitia James, accused the defendants of inflating property values for favourable loan terms. James highlighted the ruling as a testament to the rule of law, emphasizing accountability for all, including former presidents.
Trump and his sons have denounced the ruling as politically biased. The trial, based on Judge Engoron’s earlier fraud liability finding, scrutinized Trump’s financial exaggerations, including overstatements of his Trump Tower penthouse size. Despite Trump’s denials and claims of lender repayment, Engoron stressed the potential risks to future lenders.
Legal experts anticipate Trump’s appeal, given the detailed financial and testimonial analysis in Engoron’s ruling. The penalty adds to Trump’s financial burdens, including a separate $83.3 million owed to writer E Jean Carroll. Yet, Trump’s estimated $2.6 billion net worth suggests these fines won’t lead to bankruptcy.
