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Donald J. Trump loses civil fraud trial On Friday, a judge found him liable for violating state law and fined him about $355 million, plus interest. Trump is expected to have to pay more than $450 million in total.
Judge Arthur F. Engoron didn’t stop there. Among other penalties, he was also barred from leading any company in the state, including some of Trump’s family businesses, for three years. At the time, Trump granted a request from New York’s attorney general, who had filed a lawsuit alleging that Trump violated state law by inflating his net worth in documents he submitted to lenders.
Trump plans to appeal, and the case could take months, if not years, to resolve.
But Judge Engoron’s decision could cause immediate pain and threaten the former president’s finances and influence over the Trump family’s business, known as the Trump Organization. Although the threat was not existential and the judge did not dissolve the company, and Mr. Trump is not at risk of bankruptcy, the decision deals a severe financial blow to Mr. Trump and his image as a billionaire. was symbolically injured.
“When those in power break the law and take more than their fair share, they reduce the resources available to working people, small businesses and families,” Attorney General Letitia James said at a press conference Friday night. .
He added: “There can’t be different rules for different people in this country, and former presidents are no exception.”
Here’s what we know about how the ruling will affect Trump and his empire.
How will he pay $450 million?
Trump has 30 days to raise the money or secure bonds.
The companies providing bail are effectively guaranteeing New York that Trump has the funds to pay his sentence. The bail cannot be collected by authorities while his appeal is heard.
But Trump will have to find a company willing to issue him bonds as he faces a wide range of legal problems, including a recent $83.3 million judgment in a defamation case. Bond companies could charge a premium and require Mr. Trump to pledge cash or other liquid assets as collateral.
Trump has amassed cash in recent years, but the judge’s ruling puts that at risk. Between the verdict in the defamation case and the $450 million payment after Judge Engoron’s ruling, Trump may run out of money.
That doesn’t mean he runs out of money. He can sell one of his properties or look for a new mortgage to raise cash.
How did the judge calculate the fine?
Ms. James sued Mr. Trump using powerful laws that allow her to recover funds obtained through fraud.
In court papers, Ms. James said she calculated the amount to be about $370 million, plus interest, citing testimony from one of the trial’s expert witnesses. He argued that Trump and the other defendants did not provide specific answers to the experts’ calculations.
The judge agreed and ruled that Trump would be penalized for the profits he made from the recent sales of two properties and for the interest he saved on favorable loans.
What are the immediate implications for the Trump Organization?
Trump’s business could be disrupted.
The judge barred Trump from serving as an officer or director of any New York company for three years, and barred his adult son from serving for two years. One of them, Eric Trump, is the de facto CEO of the Trump Organization, and the ruling puts business leadership in uncertain territory.
Judge Engoron also barred Trump and his company from applying for loans from banks registered in New York for three years.
He strengthened the powers of the independent monitor Barbara Jones appointed to oversee the Trump Organization, giving her new powers and extending her appointment for three years. She has been a thorn in her company’s side, and Trump’s lawyers have slammed her, saying her work has already cost her more than $2.5 million.
The judge asked Jones to appoint an independent compliance director from within the company to serve as his direct eyes and ears.
What happened to Trump’s sons?
In closing arguments last month, Judge Engoron made comments that hinted at the possibility of exempting Mr. Trump’s adult sons.
“What’s the evidence that they knew there was fraud? I haven’t seen it?” So the judge asked.
Apparently, at some point in the past few weeks, he witnessed it. He found on Friday that they conspired to overvalue assets and violated several laws.
In his ruling, he said there was “sufficient evidence” that Donald Trump Jr. and Eric Trump intentionally falsified business records, and that Eric Trump was the company’s former executive. The defendant was accused of providing a “deliberately false and inflated valuation” for a property.
Each is being contested for about $4 million.
What’s next?
The judge’s ruling Friday may have been punitive, but it was only a prelude.
On Thursday, a judge scheduled Trump’s first criminal trial for March 25. The Manhattan District Attorney’s office has indicted Trump on 34 felonies, accusing him of covering up a sex scandal that may have hurt his chances in the 2016 presidential election. election.
If convicted, the former president could be sentenced to up to four years in prison. And because the case was brought by state prosecutors, Trump could not pardon himself even if he were reelected.
Claire Fahey Contributed to the report.
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