It's a massive hit to Donald Trump's business empire. Judge Arthur Engoron has ordered Trump to pay nearly $355 million in damages after a lengthy trial for fraud in New York. Engoron released his 92-page ruling on Friday afternoon.
"New York Attorney General Letitia James (D) sued Trump in 2022, alleging he falsely altered his net worth on key financial statements to receive tax and insurance benefits, reports Ella Lee at The Hill. "The documents, which detailed the value of the Trump Organization’s various assets, were sent to banks and insurers to secure loans and deals, which the state purports is evidence of fraud."
James asked for $370 in damages, but Engoron stopped short of that amount. The judge had declared that Trump, his family, and his organization were guilty of fraud before the bench trial had even begun. The deck was stacked against the former president in Engoron's courtroom.
Additionally, Trump cannot do business in New York for three years. Donald Trump, Jr., and Eric Trump had to pay $4 million each and cannot serve on a corporate board in the Empire State for two years. Trump also cannot apply for any loans in New York for three years.
There's somewhat of a silver lining in the cloud of this ruling. Engoron reversed his earlier decision to revoke Trump's business licenses.
"It’s a major reversal after Engoron effectively stripped Trump of his ability to continue as a real-estate mogul in New York, recommending at the time that independent receivers begin managing the 'dissolution of the canceled LLCs,'" Zach Schonfeld reports at The Hill. "Engoron on Friday, however, noted that dissolving Trump’s companies en masse 'could implicate serious economic concerns.'"
The ruling is a huge blow to Trump's finances, and it leaves the door open for a monitor to revoke some of Trump's business certificates later on.
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"Engoron further ordered the appointment of an independent director of compliance at the Trump Organization to ensure compliance with financial reporting obligations, and an independent monitor will continue to oversee Trump’s business empire," Schonfeld reports. "The judge ordered the independent monitor, retired federal judge Barbara Jones, to submit within 30 days an outline of the authority she needs to 'effectuate a productive and enhanced monitorship going forward.'”
It was a lengthy trial with over 40 witnesses taking the stand. At times, Trump got contentious with Engoron and James. When the former president took the stand in November, Engoron chastised him for his rhetoric, telling Trump's legal team, “This is not a political rally.”
"Trump’s legal team has maintained its argument that there was no fraud," Lee reports. "Their most robust defense came from Deutsche Bank executives, who testified that the banks wanted to work with the Trump Organization, did their own due diligence and found no fraud."
"Countless hours of testimony proved that there was no wrongdoing, no crime, and no victim," Trump spokewoman Alina Habba said in a statement. "Given the grave stakes, we trust that the Appellate Division will overturn this egregious verdict and end this relentless persecution against my clients." Eric Trump said that the family would immediately appeal.
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