The judge overseeing Donald Trump’s New York civil fraud trial on Friday found the former president liable of conspiring to inflate his net worth and ordered him to pay a $355 million penalty.
Justice Arthur Engoron also imposed a three-year ban on Trump from serving as an executive at any New York company, including his own. Engoron also barred Trump’s sons, Donald Jr. and Eric, from doing business in the state for two years and ordered them to pay more than $4 million each.
The “crushing defeat” could “wipe out” Trump’s entire stockpile of cash, according to The New York Times, which noted the total financial penalty could climb to $400 million or more when interest is added.
Trump will have to come up with the money or secure a bond within 30 days, according to the report.
Engoron also extended for three years the appointment of an independent financial monitor who will keep an eye on the Trump Organization.
Judge Engoron's order in the Trump civil fraud trial: big, big, big, big numbers. https://t.co/6PHu3TFvcP pic.twitter.com/OkuKMNZ5W4
— Anthony Michael Kreis (@AnthonyMKreis) February 16, 2024
Engoron before the trial began issued a summary judgment finding that Trump persistently committed fraud by inflating the value of his assets and ordered some of his companies to be removed from his control and dissolved. The ruling was put on hold as Trump appealed it and the former president is expected to appeal Friday’s order as well.
New York Attorney General Letitia James, who brought the lawsuit, sought $370 million in penalties and a ban on Trump and other defendants from doing business in the state.
The ruling came after more than two months of testimony from 40 witnesses, including Trump and three of his adult children.
Engoron was expected to issue a verdict weeks ago but the ruling was delayed as he sought answers over a report that former Trump Organization financial chief Allen Weisselberg may have perjured himself during the trial. Engoron on Friday ordered Weisselberg to pay $1 million for his part in the fraud and permanently barred him from serving in a financial control function at any New York business.
Former Judge Barbara Jones, the court-appointed financial monitor in the case, also found what appears to be a non-existent $48 million debt Trump claimed to owe to one of his companies that may have been used to lower his tax burden.
The ruling came the same week that another New York judge ordered Trump to stand trial next month on charges that he falsified records to cover up hush-money payments to adult film star Stormy Daniels. It comes weeks after a New York jury ordered Trump to pay $83.3 million to longtime columnist E. Jean Carroll, who sued Trump for defamation after he denied her rape allegations and repeatedly attacked her.
Trump also faces criminal charges in Georgia’s Fulton County and federal criminal charges in D.C. and South Florida.
Trump repeatedly denied wrongdoing in the case and insisted that there were no victims in the alleged fraud. Trump, who claimed that his financial statements undervalued his net worth, insisted that the case was a “fraud on me.”
James’ team estimated that Trump used inflated valuations to get lower insurance premiums and favorable loan terms, saving at least $168 million on interest alone, according to The Associated Press. Attorneys alleged that Trump exaggerated his net worth as much as $3.6 billion one year.
Trump lashed out ahead of the ruling on Truth Social, claiming that Engoron “wrongfully” ruled against him before the trial even started.
“THIS CROOKED JUDGEMENT WILL BE A DARK AND SAD DAY FOR THE JUSTICE SYSTEM IN NEW YORK STATE,” he wrote. “NO DAMAGES, NO VICTIMS - ONLY SUCCESS. CASE ALREADY WON ON APPEAL…WITCH HUNT!!! ELECTION INTERFERENCE!!!”
