In a significant ruling, a judge has ordered former President Donald Trump and his company, the Trump Organization, to pay a total of $362 million in a civil fraud trial case. The 92-page ruling found that Trump, his sons Donald Trump Jr. and Eric Trump, and the company's former chief financial officer, Allen Weisselberg, engaged in fraudulent activities by issuing false financial statements. The purpose of these statements was to obtain favorable rates from banks and insurers.
The judge's ruling closely aligns with what the New York Attorney General's office was seeking, which was a judgment of $370 million. The breakdown of the judgment reveals that Donald Trump himself is liable for approximately $354 million, while Eric Trump and Donald Trump Jr. are each responsible for $4 million. Allen Weisselberg, the former CFO, is liable for $1 million.
The trial, which lasted three months, aimed to determine the amount of ill-gotten gains obtained by the defendants. The term 'disgorgement' refers to the money they benefited from as a result of their fraudulent activities. The judge's ruling now orders them to repay these improper profits.
While the ruling did not touch on whether Trump or his sons would face any business bans, it reinforces the judge's earlier finding that they engaged in fraud. The judge had previously questioned whether there was sufficient evidence against the sons, but the ruling now indicates that they did receive improper profits.
This ruling represents a significant victory for the New York Attorney General, Letitia James, who has been investigating this case since Michael Cohen testified before Congress. Cohen's allegations that Trump inflated property values to secure better loan rates and insurance and lower tax payments prompted the investigation. The judge's finding confirms the validity of the attorney general's pursuit.
It is worth noting that this civil fraud trial was decided by the judge alone and not a jury. The ruling's financial consequences, totaling over $350 million for Trump and the Trump Organization, will undoubtedly impact the former president's reputation as a successful real estate businessman. It poses a significant legal challenge for him, as this case strikes at the core of his identity. The judge's ruling emphasizes the existence of fraud, liability, and the ordered repayment of more than $350 million, further complicating Trump's legal battles.
