NEW YORK — Donald Trump was dealt a major blow on Friday when a judge in New York ordered the former president and his companies to pay $355 million in fines for what the judge described as a scheme to deceive banks and insurers by claiming his wealth on his annual financial statements. to exaggerate overviews.
The stunning ruling adds to Trump’s legal woes as he prepares to defend himself at trial against criminal charges in four cases while also vying for the Republican presidential nomination. His lawyers said they would appeal.
Trump and his sons, who serve as top executives of the family’s Trump Organization, denied any wrongdoing and characterized the case brought by Democratic New York Attorney General Letitia James as politically motivated.
The former president posted, as he has often done in connection with his business affairs, “Election Interference. Witch Hunt,” in capital letters.
Trump lawyer Christopher Kise said Judge Arthur Engoron’s decision could cause “irreparable damage to both business and the rule of law in our country” if it is not overturned.
Attorney General James, meanwhile, said it was a “huge victory for this state, this nation, and for everyone who believes we should all play by the same rules — even former presidents.”
Here are some of the key takeaways from the judge’s ruling:
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In addition to the massive financial punishment for Trump and his companies, Engoron has barred the former president from serving as an officer or director of any New York company for three years. The ruling also bans Trump from obtaining loans from state-registered banks for three years.
The judge wrote in his ruling that the “fraud found here is staggering and shocks the conscience,” adding that Trump and his co-defendants would likely continue their “fraudulent practices” without the serious consequences and checks he imposed.
Trump had argued that the financial documents in question actually understated his net worth and contained caveats that should protect him from liability. But his testimony during the more than 2.5 month trial seemed to mean little to his case in court.
Engeron wrote that Trump and his co-defendants’ “complete lack of remorse borders on pathological,” noting that the former president testified that he does not believe the Trump Organization needs to make any changes in the future. The judge also wrote that on the witness stand, Trump “rarely responded to questions asked” and “often interrupted lengthy, irrelevant speeches on issues far beyond the scope of the trial.”
“His refusal to answer questions directly, or in some cases at all, seriously compromised his credibility,” Engoron wrote.
If the verdict is upheld on appeal, it will throw the Trump Organization’s C-suite into turmoil. Engoron banned the company’s Executive Vice Presidents, Donald Trump Jr. and Eric Trump, for two years to be officers of New York companies. Their father currently has no formal leadership position at the company.
But Trump’s companies also got some reprieve from Friday’s decision.
Before the trial, the judge ruled that Trump had been guilty of fraud with his financial statements for years. At that point, the judge ordered that some of Trump’s companies be removed from his control and dissolved. An appeals court stayed that decision months ago.
On Friday, the judge withdrew an earlier call to revoke the companies’ business licenses, but left the door open for watchdogs to do so if they see fit.
One of those watchdogs is a retired federal judge whom Engoron appointed last fall as an independent monitor for the Trump Organization. Friday’s ruling also adds an “independent compliance director” to be appointed by the regulator.
Given their oversight, “the revocation of the business licenses is no longer necessary,” Engoron wrote. But he said “the restructuring and possible dissolution” of all companies would be “subject to individual review” by the compliance director, with input from the monitor.
Donald Trump Jr. and Eric Trump were ordered to pay $4 million each. In his ruling, Engoron characterized parts of Donald Trump Jr.’s testimony as “completely unbelievable” and described Eric Trump’s credibility as “severely damaged” by his claim that he was unaware of his father’s role in drafting of the organization’s financial statements.
Eric Trump testified at the trial that he relied on accountants and lawyers to ensure the accuracy of the financial documents at the heart of the case, while Donald Trump Jr. said he never worked on his father’s financial statements.
After the ruling, Donald Trump Jr. posted on not the facts of the case!”
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Richer reported from Boston. Associated Press reporters Michael R. Sisak and Jake Offenhartz contributed from New York.