Trump banned from operating in New York following ruling, possible $250 million fine

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by priscilla degregory

The new year may be off to a rough start for Donald Trump.

The former president faces a $250 million fine and a ban on doing business in New York when the judge overseeing the civil fraud trial hands down his decision in late January.

The Manhattan Supreme Court trial has been suspended since Dec. 13, but is scheduled to resume with closing arguments on Jan. 11, and Judge Arthur Engoron has said he expects a decision on the non-jury case by the end of the year. He said he hopes so. Month.

New York Attorney General Letitia James has filed a lawsuit to repay alleged ill-gotten gains from co-defendants, including President Trump, 77, and his two eldest sons, Eric Trump Jr. and Donald Trump Jr. It is seeking at least $250 million.

The leading Republican candidate for the 2024 presidential election is accused of overstating the value of his assets by billions of dollars in annual financial statements to obtain favorable loan and insurance terms.

Engoron has already admitted that Mr. Trump is responsible for the fraud, but other allegations in Mr. James’s lawsuit and possible ultimate punishment still need to be ruled on.

A judge could order Trump to pay less or more than what the AG is seeking, but one legal expert believes Trump owes the former president the full $250 million. He said it was likely that the court would issue a verdict of either “pay or pay nothing.”

Evan Gottlob, a former prosecutor and white-collar defense attorney, said in a post: “There are no hard numbers for ill-gotten gains or losses, so I don’t know how a judge would come up with a different number.” told the paper.

Since the trial began on October 2, the court has heard from about 40 witnesses, most of whose testimony focused on how much each financial and insurance company has lost as a result of President Trump’s alleged fraud. There aren’t many, and Engoron is unlikely to come up with another testimony. That’s more than the total James is looking for.

“I don’t think the judge in this case will go over this amount. Unless you have a forensic accountant to examine a huge organization like the Trump Organization, all its books, all the ill-gotten gains they’ve made. Because the officials have no basis,” Gotlob said.

He also said it was unlikely the judge would set the fine lower than $250 million.

“Unless one of the judge’s clerks is an expert in secret finance, I think it would be very difficult to come up with a figure much lower than that – on what basis? The evidence is actually We don’t know if we have $250 million because it’s neither,” Gotlob said.

He also said judges tend to try to make people pay financial penalties.

“If you’re a judge, you can tell how much a judge can pay, whether you’re in bankruptcy or not,” Gotlob said. “I think the Trump organization is worth between $1 billion and $3 billion…There’s money to be paid.”

In a shocking ruling just before the trial began, Judge Engoron found Trump liable for one of the AG’s major fraudulent claims, and the judge revoked the Trump Organization’s operating license.

The second half of the ruling was put on hold by the appeals court, at least until Engoron’s decision, allowing the company to continue operating.

However, Gotlob predicted that even after a ruling is issued, the case could take years to conclude, as President Trump is likely to appeal the negative ruling all the way to the Empire State’s highest court. did.

“I could see this case going all the way to the Court of Appeals, especially knowing how much former presidents like to challenge judgments against them,” Gotlob said. .

Because “courts don’t like to get involved in politics,” Gotlob suggested that the case will not be resolved until after the 2024 presidential election at the earliest, with a final verdict expected no later than 2025 or 2026. He added that there is a possibility of a decision being made.

Regarding the license revocation, Gotlob said it will be years before the Trump real estate empire feels the effects of the suspension of the judgment pending appeal.

Even if the ruling were to take effect, Trump could find workarounds, such as running shell companies, the lawyers opined.

Still, “potentially losing your license for at least five years, or even longer, is pretty damaging,” Gotlob said.

“New York is like the epicenter of the business world.”

The real estate mogul is a defendant along with Trump’s two eldest sons, Trump Org, in a lawsuit accusing Trump of inflating the value of his assets in annual financial statements from 2011 to 2021. .

Testimony at the trial lasted 11 weeks, with former commanders in chief, kids Eric, 39, Ivanka, 42, and Donald Jr., 45, taking the stand.

The former eldest daughter was also initially named as a defendant in the case, but the appeals court dismissed the claims against her as being beyond the statute of limitations.

All four Trumps denied the auditing firm’s claims and blamed accountants and lawyers for discrepancies in financial statements.

Mr. Trump was in court for eight days of the trial, and although he was not required to attend as he does in criminal cases, he repeatedly attacked the AG and the case, as well as the judge and even Engoron’s top law clerk.

Engoron issued a limited gag order on the second day of the trial, barring Trump from speaking publicly about court officials, as the 45th president went after Chief Justice Alison Greenfield on social media. Ta.

The judge fined Trump $15,000 for violating the gag order twice.