Former President Donald Trump and his associates have been directed by a New York judge to pay $364 million for falsely overstating the value of his and his company’s assets on financial statements. The ruling imposes substantial penalties on the former president and his business, potentially impacting his finances and business operations.
Here are the key details:
- New York Attorney General Letitia James sued Trump, his associates, including his sons, and the Trump Organization for allegedly misrepresenting asset values on financial documents to secure more favorable business deals and inflate Trump’s net worth.
- Judge Arthur Engoron found the defendants liable for fraud in misstating asset values and conducted a lengthy trial to determine whether they committed fraud knowingly, violating laws on falsifying business records, insurance fraud, and issuing false financial statements.
- The judge concluded that there was overwhelming evidence showing Trump and his associates conspired to commit fraud and knowingly submitted false financial statements. He dismissed arguments by the defendants that they relied on external accountants to verify the accuracy of the numbers.
- Trump was found liable in the scheme, with the judge stating that the former president was aware of key facts underlying fraudulent misstatements and severely compromised his credibility during testimony.
- The ruling requires Trump and companies under his control to pay approximately $354.9 million, while his sons are each ordered to pay about $4 million, and former CFO Allen Weisselberg must pay $1 million, totaling more than $450 million with interest.
- Additional penalties include barring Trump from leading any New York businesses for three years, with his sons each barred for two years, and continued oversight of the business by an Independent Monitor, along with the appointment of a new Independent Director of Compliance.
- The judge criticized the defendants’ denial of reality and lack of contrition, stating that their refusal to admit error suggests a likelihood of engaging in similar conduct in the future.
Trump denounced the ruling as a sham and politically motivated, while his attorney labeled it a manifest injustice. Trump and his co-defendants plan to appeal the decision, although Trump is required to either pay into a court-controlled account or secure an appeals bond within 30 days.
The trial’s outcome may have wider legal implications, as Weisselberg is reportedly in plea negotiations for perjury charges. The case began in 2022 when James accused Trump and his associates of misstating valuations on financial statements over 200 times between 2011 and 2021.
In addition to this civil case, Trump was previously ordered to pay $83.3 million in damages for defamation to writer E. Jean Carroll. He intends to appeal this ruling as well.