Former President Donald Trump and the Trump Organization have been fined $354 million in a civil fraud case, and they are prohibited from doing business in New York for three years.
The judgment, issued by Judge Arthur Engoron, is one of the largest corporate sanctions in New York’s history.
The decision also includes a three-year ban on Trump serving as an officer or director of any New York corporation.
Trump, along with his two sons and top officials, is accused of submitting false financial data to borrow money at more favorable interest rates.
The judgment also affects Allen Weisselberg, the former CFO, and Jeffrey McConney, the former corporate controller, who are barred from serving in leadership roles in New York corporations for three years.
Trump’s two oldest sons, Eric and Donald Jr., are banned from such roles for two years and must pay over $4 million each. Engoron’s scathing rebuke criticizes the lack of contrition and remorse from Trump and his associates, describing their actions as a “complete lack of contrition” that “borders on pathological.”
The New York Attorney General, Letitia James, hails the decision as a victory for accountability, stating that no one is above the law.
Trump has vowed to appeal the verdict, while his attorney, Alina Habba, denounces it as a “manifest injustice” and a result of a politically fueled witch hunt. The Trump Organization defends its financial dealings, calling the ruling a “gross miscarriage of justice.”
The civil suit, brought by James in 2022, accused Trump and his company of persistent and repeated fraud, falsifying business records, conspiracy, issuing false financial statements, insurance fraud, and conspiracy to commit insurance fraud.
The judge had previously ruled in September that Trump and the defendants were liable for fraud based on evidence presented through pretrial filings.
The trial, which spanned from October to January, focused on various aspects of the lawsuit related to alleged falsification of records, false financial statements, insurance fraud, and conspiracy.
Despite the ruling, Ivanka Trump, originally named as a defendant, had allegations against her dismissed by an appellate court, citing the state’s statute of limitations.
The lawsuit outlined Trump and his company’s actions in inflating property valuations by hundreds of millions of dollars to deceive banks and insurers for more favorable terms.
Engoron’s order criticizes Trump’s testimony during the trial, noting a lack of direct answers and irrelevant speeches that damaged his credibility.
