A New York judge has ruled that Donald Trump must pay $354.9 million due to fraudulently inflating his net worth to deceive lenders. This ruling is another blow to the former US president’s legal battle in a civil case threatening his real estate business.
Justice Arthur Engoron has prohibited Mr Trump from holding any position as an officer or director of a New York corporation for three years.
In September, Judge Engoron ordered the “dissolution” of the companies controlling Trump’s real estate empire. However, he has now decided to cancel his previous ruling as he has appointed an independent monitor and compliance director to supervise Trump’s businesses, making the dissolution unnecessary.
According to Judge Engoron’s verdict, Mr Trump and his co-defendants cannot acknowledge wrongdoing.
Judge Engoron says their lack of regret and apology is nearly pathological. Instead of acknowledging their wrongdoings, they adopt a stance of ignorance, refusing to see, hear, or speak about the evidence that contradicts their actions.
According to the lawsuit filed by Attorney General of New York Letitia James, Mr Trump and his family’s businesses were accused of falsely inflating his net worth by up to $3.6 billion per year for ten years to deceive bankers and obtain more favourable loan conditions.
In January, Judge Arthur Engoron oversaw the final arguments in the Trump Organization’s civil fraud trial at the New York State Supreme Court.
According to a statement from Alina Habba, the lawyer of Mr. Trump, the decision was deemed as an apparent injustice and the result of a politically-driven witch hunt that has been ongoing for several years.
According to Ms Habba, the impact of this ruling extends beyond just Donald Trump. It will send a clear message to all Americans that New York is no longer a welcoming place for business. She intends to challenge this decision through the appeals process.
The case involved Mr. Trump and his two adult sons, Don Jr. and Eric, who were named as defendants. As part of the ruling, the judge ordered Don Jr. and Eric Trump to pay $4 million each.
According to Mr Trump, the case brought against him by James, an elected Democrat, is a political vendetta, and he denies any wrongdoing. Judge Engoron’s ruling is likely to be appealed by Mr Trump.
The civil fraud case could potentially significantly impact Trump’s real estate business. The former businessman and current political figure is currently leading the Republican nomination race against Democratic President Joe Biden for the upcoming US election on November 5th.
In September, Judge Engoron decided that Mr Trump had committed fraud and directed a partial dissolution of his business empire.
The decision was made following a heated trial lasting three months in Manhattan.
In November, Mr Trump gave a rebellious and wandering testimony. He admitted that specific property values were incorrect but strongly asserted that the banks were responsible for verifying them.
During occasional court appearances, he often used them as impromptu campaign opportunities, making provocative statements to journalists and claiming that his opponents manipulated the legal system to hinder his return to the presidency.
Despite facing numerous legal issues, Mr. Trump is still on track to secure the Republican nomination.
The individual is facing charges in four separate criminal cases, including one in New York concerning payments made to an Adult star before the 2016 election. Despite the objections of Mr. Trump’s legal team, the judge assigned to the case has set a trial date of March 25th, citing Trump’s busy legal and political obligations as insufficient reason for a delay.
Donald Trump Jr. (C) and Eric Trump (L) each received a $4 million fine.
Former President Trump is also facing charges in Florida, Washington, and Georgia for mishandling classified documents after his term ended and for his attempts to overturn his defeat in the 2020 election.
The defendant, Mr Trump, has pleaded not guilty in all four cases.
On January 11th, while defending himself in the New York civil case, Mr Trump vehemently criticized the judge and James while maintaining his innocence.
During the trial, Judge Engoron reprimanded Mr. Trump, stating that he had his agenda. The judge also instructed Mr. Trump’s lawyer to take control of his client. As a result of repeatedly violating a gag order that prohibited him from speaking negatively about court staff, the judge fined Mr. Trump $15,000.
In September, Judge Engoron decided that Mr. Trump’s financial records contained fraudulent information, shifting the trial’s attention to determining the amount of penalties he should be held accountable for. Ms James aimed to impose a $370 million penalty and prohibit Trump, Donald Jr., and Eric Trump from engaging in commercial real estate activities in New York.
The court proceedings included some impactful testimony. During his bold testimony, Mr Trump bragged about his business skills and accused James and Judge Engoron of showing bias. Michael Cohen, Mr. Trump’s previous attorney and “fixer”, testified to support the state’s case.
According to Cohen’s testimony, he altered the values of Mr. Trump’s real estate assets to correspond with “whatever number Mr. Trump informed us of.” Afterward, Mr. Trump referred to Cohen as a “disgraceful individual.”
Cohen’s attorneys interrogated him about his past criminal charges during the questioning. They alleged that he had fabricated information to increase sales of his book and traffic to his podcast.
Ivanka Trump, Donald Jr., and Eric testified before Mr. Trump.
They said they had minimal or no participation in their father’s financial records while managing the Trump Organization, which serves as a conglomerate for Trump’s various business endeavours.
Ivanka Trump, unlike her brothers, was not included as a defendant
Accreditation: Reuters
