Trump ordered to pay $355M in New York fraud case
A New York judge on Friday ordered former President Trump to pay nearly $355 million in penalties in a civil fraud case that has dealt a stark blow to his family’s business empire.
Judge Arthur Engoron’s 92-page decision came just weeks after closing arguments in the case following a months-long trial last year during which Trump frequently lambasted the judge and the prosecutor who brought the case.
New York Attorney General Letitia James (D) sued Trump in 2022, alleging he falsely altered his net worth on key financial statements to receive tax and insurance benefits. The documents, which detailed the value of the Trump Organization’s various assets, were sent to banks and insurers to secure loans and deals, which the state purports is evidence of fraud.
Engoron found Trump, the Trump Organization and several top executives, including his adult sons, liable for fraud before the trial began. The verdict is at the sole discretion of Engoron because there was no jury at the trial.
The fine is some $16 million less than the $370 million the attorney general’s office asked the judge to force Trump to pay. It also blocks Trump from participating in New York business for three years.
Trump’s sons, Donald Trump Jr. and Eric Trump, were ordered to pay more than $4 million each, and ex-chief financial officer Allen Weisselberg was ordered to pay $1 million.
Weisselberg was also blocked from New York business for three years, and both he and former controller Jeffery McConney were barred for life from serving “in the financial control function” of any New York corporation or business entity.
The trial spanned more than two months, with testimony — sometimes tempestuous — from 40 witnesses including ex-Trump fixer Michael Cohen, top Trump Organization executives, Trump’s adult children involved in his business and the former president himself.
Trump’s legal team has maintained its argument that there was no fraud. Their most robust defense came from Deutsche Bank executives, who testified that the banks wanted to work with the Trump Organization, did their own due diligence and found no fraud.
Engoron’s early ruling on Trump’s fraud liability established a contentious rapport between the former president and the judge, who clashed repeatedly throughout the trial.
When Trump took the witness stand in November, he lobbed attacks at the judge and James, calling them “frauds,” “political hacks” and “Trump haters” while repeating the familiar refrain that his legal issues are “political witch hunts” aimed at keeping him from a second term in the White House.
At one point, Engoron chastised a Trump lawyer over the former president’s conduct, telling him to “control” his client.
“This is not a political rally,” Engoron said.
Trump’s financial standing could take a brutal hit after the $354.8 million judgement and another $83.3 million judgement against him for defaming writer E. Jean Carroll after denying her accusation he sexually assaulted her decades earlier.
Forbes estimates the former president’s wealth at $2.6 billion, and the Bloomberg Billionaires Index deemed him worth $3.1 billion. After the colossal decisions, Trump stands to lose 13 percent or more of his estimated net worth – if the estimations of his wealth are accurate.
Legal fees also continue to mount, as Trump’s criminal cases heat up and appeals in his civil cases begin.
In 2023, Trump’s fundraising committees spent roughly $50 million on legal consulting, including more than $18 million combined for lawyers Chris Kise, Alina Habba and Clifford Robert, who represented Trump and his business in the fraud case. The lawyers have also handled other matters for the former president.
This story was updated at 3:24 p.m.