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DONALD TRUMP ORDERED TO PAY OVER $350M IN NEW YORK FINANCIAL FRAUD
CASE  
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Lauren Aratani
February 16, 2024
Guardian
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_ Trump also banned from running any New York corporation or entity
for three years in devastating blow for ex-president _

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Donald Trump, his eldest sons and associates have been ordered to pay
over $350m by a New York judge who found them guilty of intentionally
committing financial fraud over the course of a decade.

“The frauds found here leap off the page and shock the
conscience,” Judge Arthur Engoron wrote in his decision. In a
devastating blow for the former president who had built his reputation
as a successful real estate developer, Engoron barred Trump and two
other executives from serving as officers or directors of any
corporation or entity in New York for three years. His sons, Eric
and Donald Trump Jr
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two years.

The three-month hearing was an often heated affair with Trump
attacking Engoron in and out of the courtroom. The former
president’s decision to take on the judge appeared to backfire.

“Overall, Donald Trump rarely responded to the questions asked and
he frequently interjected long, irrelevant speeches on issues far
beyond the scope of the trial. His refusal to answer the questions
directly, or in some cases, at all, severely compromised his
credibility,” Engoron wrote.

In his decision Engoron said the defendants’ “fact and expert
witnesses simply denied reality, and defendants failed to accept
responsibility or to impose internal controls to prevent future
recurrences” adding the defendants “complete lack of contrition
and remorse borders on pathological”.

On his social media site Trump attacked the verdict, Engoron and his
prosecutors. “This ‘decision’ is a Complete and Total SHAM.
There were No Victims, No Damages, No Complaints. Only satisfied Banks
and Insurance Companies (which made a ton of money), GREAT Financial
Statements, that didn’t even include the most valuable Asset – The
TRUMP Brand,” he wrote.

The decision will make it hard for any Trump family member to run the
business in the near future. Trump’s adult sons were each fined
$4m. Eric Trump
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Organization’s chief executive.

The hefty fine comes on top of an $83.3m judgment
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the former president in a defamation suit brought by the writer E Jean
Carroll. Bloomberg estimates Trump’s net worth at $2.3bn, but it is
unclear how much cash
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has on hand.

The ruling marks the conclusion of a case that was years in the
making. The New York attorney general, Letitia James, has been
investigating Trump’s business since 2019. James hailed the ruling
as a “massive victory”. “No matter how big, how rich, or how
powerful you are, no one is above the law. Not even Donald
Trump,” she said.
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Trump has denied all wrongdoing and will probably appeal the decision.

Prosecutors had asked Engoron for a lifetime ban along with a $370m
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the amount they said Trump had profited after lying about his net
worth and receiving lower interest rates from lenders.

The ruling is a follow-up to a pre-trial judgment
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issued in September based on document evidence. Engoron ruled Trump
had misrepresented his net worth to lenders and ordered the
cancellation of the Trump Organization’s business certificates,
essentially ending its ability to continue operation in New York.

In Friday’s verdict, Engoron overturned his initial ruling, saying
that “the cancellation of the business licenses is no longer
necessary” as he is ordering the appointment of two court monitors
to oversee “major activities that could lead to fraud”.

The actual trial was held to determine whether Trump would have to pay
a fine. Prosecutors had to show Trump and the other defendants,
including Trump’s adult sons and former Trump Organization
executives Allen Weisselberg
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Jeff McConney, had acted with intent. Forty witnesses testified during
the three-month trial.

Prosecutors argued that Trump had lied on government financial
statements, allowing him to receive more favorable loans from lenders.
One of the most striking examples in the case concerned Trump’s
triplex apartment in Trump Tower, which records showed was reported to
be 30,000 sq ft but is closer to 11,000 sq ft.

The court also heard that Trump overvalued his Seven Springs estate in
Westchester county, New York
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the property had development potential, though local residents had
blocked Trump’s plans for the property. Trump also valued multiple
rent-stabilized apartments in his Trump Park Avenue condominium at
market rates.

Trump’s team tried to argue that the valuations were
“worthless”
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they contained a clause saying as much, an argument the judge
rejected.

His lawyers also argued that the discrepancies were the fault of
outside advisers and accounting errors, though they persisted for
years and contradicted outside appraisals the company had received.

On the stand, Trump argued he could just look at a building and decide
its worth. “All you have to do is look at a picture of the building
and say: ‘That building,’” Trump said, talking about the Trump
office building at 40 Wall Street. “You just look at it and you say:
‘That’s worth a lot more than $550m.’”

In determining the size of the fine, Engoron agreed with prosecutors
that Trump saved about $168m in interest by inflating the value of
assets. Another $126m came from calculating the “ill-gotten
profits” Trump received from selling the Old Post Office building in
Washington DC, which Trump would not have been able to purchase,
Engoron said, without using false financial statements.

_Lauren Aratani is a reporter for Guardian US _

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* Donald Trump
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* Letitia James
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