Former US President Donald Trump at a press conference after hearing the defamation trial of E. Jean Carroll who claims he raped her/Reuters
A New York court ruled yesterday (Friday) that former United States President Donald Trump must pay fines totaling $354.9 million, following his conviction for defrauding the value of his assets in order to obtain more favorable loan terms.
In addition, Trump will not be able to work for any company in New York for three years.
Judge Arthur Anguron's ruling came at the end of a tumultuous three-month trial in Manhattan, and is another blow to Trump's real estate empire, which is also embroiled in other criminal offenses. Trump's lawyer, Alina Haba, said they would appeal
the sentence.
His previous ruling from September ordered the "dissolution" of the companies that control Trump's real estate empire, and he said on Friday that this is no longer necessary because he is appointing an independent monitor of Trump's businesses.
Trump and the other defendants in the case, Anguron wrote in the verdict, "are not capable of admitting wrongdoing."
According to him,
"this complete lack of remorse borders on pathology. Instead, they took a position of 'we didn't see, we didn't hear, we didn't speak' despite the evidence."
The lawsuit filed by New York Attorney General Leticia James accused Trump and his family businesses of inflating their net worth by about $3.6 billion a year for a decade in order to fool banks into giving him better loan terms.
In September, the judge accepted the prosecution's claims, according to which Trump and his organization routinely inflated the value of his properties, including skyscrapers, golf courses and the Mar-a-Lago estate in Florida, so that the former president increased the value of his fortune by billions of dollars.
Former US President Donald Trump outside the courthouse in Manhattan, February 15, 2024/Reuters
Trump, who faces criminal charges in four other cases, called the prosecution "political revenge" by the attorney general, a Democrat.
After the ruling, Trump called Anguron a "crook", James "corrupt" and the case against him "election interference" and a "witch hunt".
"This 'decision' is a complete and utter disgrace," Trump wrote on social media.
"Injustice must not be allowed to win."
Engoron, who ruled in a non-jury trial, also banned Trump and his companies named in the lawsuit from seeking loans from any financial institution in New York for three years, which could harm his ability to get credit from major banks in the United States.
The judge said that Trump's past entanglements and his friendships with the law were part of the reason for the heavy sentences he imposed.
The Trump Organization was convicted of criminal tax fraud in 2022, and two other companies that Trump managed reached settlements with the state of New York that sued them.
Trump's adult sons, Don Jr. and Eric, were also prosecuted in the case and were fined four million dollars each.
Their lawyer, Clifford Robert, called the decision a "heinous injustice" and said he believed it would be overturned on appeal.
At the same time, former Trump Organization CFO Alan Weiselberg, who pleaded guilty to tax fraud in a separate criminal case, was ordered to pay $1 million and banned from managing the finances of any company in New York for the rest of his life.
James, the New York attorney general, said the fines imposed on all defendants totaled more than $450 million, including interest. "Donald Trump is finally being held accountable for his resounding lies and deceptions," she said. "Because no matter how big, rich or powerful you think you are, no one is above the law".
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Court in New York: Trump defrauded banks and insurance companies in order to build his real estate empire
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President Trump's Mar-a-Lago estate is prepared for Hurricane Irma 9/8/17/Reuters, Reuters
During his defiant and meandering trial testimony in November, Trump acknowledged that some of his asset values were inaccurate, but insisted that banks are required to do their own due diligence.
Anguron criticized his behavior during his testimony, and wrote that the testimony he gave hurt Trump himself.
"Donald Trump hardly answered the questions that were asked, and he often gave long and irrelevant speeches on issues that go beyond the field of law," the judge wrote.
"His refusal to answer the questions directly, or in some cases to answer at all, severely damaged his credibility."
Last month, on the day of the sentencing arguments, Trump stormed out in the courtroom and attacked the judge and the attorney general.
"You have your own agenda," Trump scolded Angoron, who told Trump's lawyer to "control your client."
During the trial, the judge fined Trump $15,000 for twice violating an order that prohibits him from sending court staff.
During the appeal, Trump may be required to deposit his share of the original judgment plus interest.
Trump could also write down a smaller amount with collateral and interest by securing a type of loan called an appeal bond. However, he may struggle to find a willing lender after Angoron revealed he lied to banks about his wealth. It's
unclear how much access to cash Trump has, and estimates of his wealth are changing. "Forbes" magazine estimates his fortune at $2.6 billion, while Trump testified in an affidavit given last year that he has about $400 million in cash.
Trump's holdings in the parent company of his social network, Truth Social, which is facing merger, are worth about four billion dollars. He will be allowed to sell shares in the merged company six months after the completion of the merger, which this week received the green light from financial authorities in the United States.
Trump could also sell parts of his real estate portfolio to satisfy the ruling, but it is not clear how much his holdings are worth, and selling them could take time .
On the other hand, legal experts say that Trump will not be able to use the campaign funds to pay the judgment because the case was not related to his campaign or his conduct as president or political candidate.
Trump Tower in Manhattan, April 18, 2019/Reuters
In another civil suit, a jury ruled last month that Trump must pay author E. Jean Carroll $83.3 million for defaming her by denying her claim that he raped her decades earlier.
Trump promised to appeal.
Another jury last year ordered Trump to pay her $5 million in damages in a separate case.
Trump has been indicted in four other criminal cases, including one in New York related to hush money paid to porn star Stormi Daniels before the 2016 election.
The judge overseeing the case set a date for the trial on Thursday, which will begin on March 25.
Trump is also accused in Florida of taking classified documents without authorization after the end of his term, and in Washington and Georgia for his attempts to reverse his loss in the 2020 presidential election.
Trump has pleaded not guilty in all the cases against him, and claims that they are all part of an extensive conspiracy by the Biden administration and law enforcement agencies.
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