The New York Civil Fraud Trial: Donald Trump’s Deception and the Staggering Extent of His Fraud
3 min read
The New York Civil Fraud Trial: Donald Trump’s Deception and the Staggering Extent of His Fraud
On February 16, 2024, former President Donald Trump and his companies were hit with a devastating blow in the form of a civil fraud trial ruling in New York. The ruling, which ordered Trump and his companies to pay nearly $355 million, marked the biggest punishment to date for the former president. The judgment, which also barred Trump from serving as an officer or director of a New York corporation for three years, was the result of a lengthy and highly publicized trial that saw Trump and his co-defendants accused of fraudulently inflating the values of their properties.
The trial, which lasted for 11 weeks, saw Trump and his team repeatedly attack the judge, Attorney General Letitia James, and the case on social media. However, in his 93-page opinion, Judge Arthur Engoron painted Trump as a “pathological” fraudster who was highly likely to commit fraud again. The judge acknowledged that the sins Trump committed were not as serious as some crimes but faulted him and his co-defendants for a complete lack of contrition.
The biggest fines yet against Trump
The ruling found that the defendants’ fraud saved them about $168 million in interest and fined Trump and his companies that amount. The judge also ruled that Trump and his companies were liable for $126 million in ill-gotten profits from the sale of the Old Post Office in Washington, DC, and $60 million in profits from the sale of Ferry Point in the Bronx. Trump was also required to pay interest on those payments.
The judge gets the last word
Throughout the trial, Trump repeatedly attacked Engoron and the case on social media, outside the courtroom, and even to the judge’s face while testifying. However, Engoron got the last word, painting Trump as a “pathological” fraudster who would not stop unless forced. The judge acknowledged that the sins Trump committed were not as serious as some crimes but faulted him and his co-defendants for a complete lack of contrition.
No corporate death penalty
The judge banned Trump from serving as an officer or director of a New York corporation for three years but did not issue the so-called corporate death penalty. Engoron pulled back from a decision he issued in September to dissolve Trump’s business certificates in finding that Trump and his co-defendants were liable for persistent and repeated fraud. However, an independent monitor would stay in place for at least three years, and an independent director of compliance should be put in place at the Trump Organization at the company’s expense.
Judge says Cohen told the truth
The ruling also recapped Michael Cohen’s theatrical trial testimony, acknowledging the credibility issues with Trump’s former lawyer and fixer. However, the judge ultimately believed Cohen’s testimony. Cohen had testified that Trump had inflated the values of his properties to secure loans and insurance coverage.
Trump’s adult sons banned for 2 years
Trump’s eldest sons, who have essentially run the Trump Organization since 2017, were barred from serving as executives in New York for two years. The Trumps will have to navigate the two-year penalty as they sort out the future of the family-run real estate company.
Appeal and the future
Trump and his lawyers have vowed to appeal the decision, and the money required to move forward with the appeal will be held in an account pending the appellate process. The 9% interest that Judge Engoron ordered Trump and his company to pay on the nearly $355 million judgment will continue to accrue until it’s paid. The state requires a notice of appeal within 30 days of the judgment.
The civil fraud trial in New York served as a precursor to the four criminal trials Trump is expected to face this year as he campaigns to regain the presidency. The ruling, which found Trump and his companies liable for fraudulently inflating the values of their properties, marked a significant blow to the former president’s reputation and business interests. The ruling also highlighted the importance of holding individuals and corporations accountable for their actions, regardless of their wealth or political connections.
