In a landmark ruling, former President Donald Trump has been hit with a staggering $355 million fine for fraudulent practices related to the valuation of his properties. This adds to the recent $83 million judgment against Trump for defaming E. Jean Carroll, bringing the total penalties against him to a whopping $438 million over the past four weeks.
The decision, delivered by Judge Arthur Engoron, underscores the significant legal challenges facing Trump, as civil cases continue to chip away at his business empire while he braces for four impending criminal trials, the first of which is scheduled to commence next month. Engoron found Trump guilty of fraud, conspiracy, and issuing false financial statements and records. While the Trump Organization has not been dissolved, Engoron issued a scathing 93-page opinion portraying the former president as unrepentant and likely to repeat fraudulent behavior.
Here are the key takeaways from the ruling:
- Record-Breaking Fines: The fines imposed by Engoron are unprecedented in magnitude compared to any previous penalties against Trump. New York Attorney General Letitia James had sought $370 million in fines, alleging a long-standing fraud scheme to inflate Trump’s assets. While the fine fell slightly short, Engoron held Trump and his companies accountable for significant ill-gotten gains.
- Trump’s Business Practices Scrutinized: Engoron ruled that Trump and his companies profited unlawfully from the sale of properties such as the Old Post Office in Washington, DC, and Ferry Point in the Bronx, amounting to millions in fraudulent gains. Trump now faces additional interest payments that could potentially inflate the total penalty to over $100 million.
- Engoron’s Verdict on Trump’s Character: The judge lambasted Trump’s lack of contrition and his propensity for fraud, likening his behavior to pathological tendencies. Engoron highlighted Trump’s refusal to acknowledge wrongdoing and his penchant for deflecting blame.
- No Corporate Dissolution: While Engoron stopped short of dissolving the Trump Organization, he imposed stringent oversight measures, including the appointment of independent monitors to supervise its operations for at least three years.
- Cohen’s Testimony Upheld: Despite credibility issues, Engoron deemed Michael Cohen’s testimony credible, particularly regarding Trump’s involvement in fraudulent activities. Cohen’s testimony played a pivotal role in establishing Trump’s liability.
- Penalties for Trump’s Sons: Trump’s eldest sons, who have been integral to the Trump Organization, were barred from executive roles in New York for two years. Engoron criticized Eric Trump’s credibility and ordered both sons to pay millions in disgorgement from the sale of the Old Post Office building.
- Ivanka Trump’s Involvement: While Ivanka Trump was dismissed as a defendant, Engoron questioned the consistency of her testimony and noted her selective memory during the trial.
- Appeal Expected: Trump’s legal team has vowed to appeal Engoron’s ruling, alleging judicial errors and signaling a protracted legal battle ahead.
As the legal saga unfolds, Trump’s financial and legal troubles continue to mount, posing significant challenges to his future endeavors.