Key Points from $355M Civil Fraud Ruling Against Trump

On Friday, Donald Trump faced his largest financial penalty to date, with Judge Arthur Engoron imposing a $355 million fine on the former president for inflating the value of his assets. This fine comes on top of a previous $83 million judgment against Trump for defaming E. Jean Carroll, bringing the total fines to approximately $438 million over the last month.

Engoron’s ruling highlights the ongoing civil cases against Trump, which pose a significant threat to his business ventures amidst four pending criminal trials, the first of which is scheduled for next month. Engoron found Trump guilty of fraud, conspiracy, and issuing false financial and business records. He also prohibited Trump from serving as a director in any New York company for three years, although he did not dissolve the Trump Organization entirely. Engoron’s 93-page opinion depicted Trump as unrepentant and prone to future fraudulent acts.

Engoron’s fines, aimed at recouping ill-gotten gains, are unprecedented in scale compared to previous penalties against Trump and his company. New York Attorney General Letitia James had sought a $370 million fine for the defendants’ long-term fraudulent scheme. Engoron’s judgment included a $168 million fine for saved interest, $126 million for profits from the sale of the Old Post Office in Washington, DC, and $60 million for profits from the sale of Ferry Point in the Bronx. Additional interest could increase Trump’s total payment by up to $100 million. Trump is also barred from holding any officer or director role in New York corporations for three years.

Throughout the trial, Trump frequently attacked Engoron and the case both in and out of court. Engoron’s ruling rebuked Trump’s lack of remorse and cautioned that judicial restraint was necessary to prevent future fraud.

The judge refrained from invoking the corporate death penalty against the Trump Organization, opting instead for oversight by independent monitors and a compliance director to mitigate the need for license cancellation.

Engoron found Michael Cohen, Trump’s former lawyer, credible despite potential biases, corroborating his testimony with trial evidence. Trump’s adult sons, Eric and Donald Trump Jr., were found liable and barred from executive roles in New York for two years. Eric Trump’s credibility was specifically challenged by Engoron based on inconsistent trial testimony.

Engoron criticized Ivanka Trump’s testimony as suspect due to selective recall, though she retains profits from the Old Post Office sale due to her dismissal as a defendant.

Trump plans to appeal the ruling, criticizing Engoron’s decision as disregarding law and facts. His attorney expressed confidence in overturning the judgment on appeal. Engoron’s comprehensive ruling anticipates appellate review, highlighting the potential for prolonged legal battles.