A New York judge has ruled against Donald Trump and his eponymous company, ordering them to pay $453.5 million in damages and interest, and imposing additional penalties on two of his sons. Moreover, the judge has barred them from conducting business in the state after finding them guilty of rampant fraud by inflating the value of Trump’s real estate holdings.
In a scathing 92-page decision released on Friday, Justice Arthur Engoron described the frauds uncovered in the case as glaring and egregious. He highlighted how the defendants, in their pursuit of securing loans at lower rates, submitted blatantly false financial data to accountants, resulting in fraudulent financial statements. Engoron expressed dismay at the defendants’ refusal to acknowledge errors in these statements, likening it to a pathological lack of contrition and remorse.
The ruling marks a significant financial setback for Trump, whose global real estate empire has been a cornerstone of his wealth and influence. It also represents a major triumph for New York State Attorney General Letitia James, who initiated the lawsuit. This judgment, coupled with a recent civil defamation case that saw Trump ordered to pay $83.3 million, brings the total penalties against him to a staggering $536.8 million in just three weeks.
Trump has vehemently protested the decision, denouncing it as politically motivated and vowing to appeal. His attorney, Alina Habba, echoed his sentiments, decrying the ruling as a manifest injustice and the culmination of a politically fueled witch hunt.
The ruling holds Trump and his namesake company liable for $354.9 million, while his sons, Eric and Donald Trump Jr., are each liable for $4 million. Additionally, former chief financial officer Allen Weisselberg is liable for $1 million. Engoron also imposed a three-year ban on Trump conducting business in New York State.
Engoron’s decision comes after a contentious trial characterized by fiery testimony from Trump, outbursts directed at the judge, and fines for violating gag orders. Throughout the trial, Trump’s credibility was repeatedly called into question, with Engoron ultimately deeming him an unreliable witness.
The case centered on allegations that Trump and his associates routinely overvalued their real estate assets to secure more favorable loans and insurance terms. Engoron highlighted several instances where Trump properties were appraised at vastly inflated values compared to independent assessments.
For instance, Seven Springs LLC, a Westchester County property, was valued by Trump at $261 million to $291 million, despite appraisals valuing it at $30 million. Similarly, Trump Park Avenue was found to have rent-controlled apartments overvalued by 700%. Trump Tower’s penthouse was falsely claimed to be triple its actual size, resulting in an overvaluation of up to $207 million.
Engoron’s ruling sends a strong message that attempts to manipulate financial data for personal gain will not be tolerated. It serves as a reminder that no one, regardless of wealth or power, is above the law. As Trump faces mounting legal challenges while campaigning for the White House, the consequences of his actions continue to reverberate.