Donald Trump Hit With Massive Fine And Business Ban In Fraud Verdict

On February 16, Judge Arthur F. Engoron of the Manhattan Supreme Court ruled that former President Donald Trump had to pay over $354 million in damages in the case of his 2022 civil lawsuit, NBC News reports. The verdict also bars Trump "from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years." 

In September 2023, Engoron declared that Trump and his adult sons were liable for committing fraud, per CNN. The judge initially voided the Trump Organization's business certificate but later withheld the decision. Trump's legal team denied any fraudulent activities, and in a statement, Christopher Kise, Trump's lawyer, accused the judge of overlooking evidence. The trial, which sought to determine the extent of damages and find fair compensation for them, started on October 2, 2023, and concluded on January 11, 2024. 

Trump's civil lawsuit began in September 2022 after Letitia James, the Attorney General of New York, sued Trump and his children for fraud. She sought $370 million in penalties with the former president receiving a lifelong ban from the real estate business and another ban to prevent him from being an officer or a director at a New York-based company. Additionally, she wanted a five-year real estate industry ban for Donald Trump Jr. and Eric Trump, per CNBC. 

Donald Trump allegedly grossly over-valued his assets

In the 200+ page civil lawsuit, Attorney General Letitia James alleged that former President Donald Trump had inflated the value of some of his assets to make himself seem like he was in a more sound financial position and receive hefty loans from banks that would enhance his financial gains. She estimated that Trump had gained more than $250 million from his fraudulent activities. The documents shared by the Independent cited several examples of Trump's fraudulent gains.

To name a few, James alleged that Trump had falsely claimed his lavish Trump Tower apartment was 30,000 square feet, when it was about 11,000 square feet, resulting in an over-estimated price of nearly $30,000 per square foot. Per the lawsuit, Trump's property at 40 Wall Street was valued at $220 million by a bank in 2012, but the financial statements for the next year estimated its value at $527 million and $530 million in the following year. 

Trump and his legal team denied wrongdoing by claiming that the value of property lies in the eyes of the valuer. Trump said that he hadn't committed fraud because he paid his dues to the banks that loaned him money. Trump displayed some on-brand behavior throughout the trial and our body language expert told us it was to make his innocence seem more legitimate. While Trump tried to turn the tables and accuse James of trying to take him down due to a personal vendetta, his lawyers lobbed several intense accusations at her. To top it all off, Trump went against the judge's orders and spoke for six minutes during closing arguments.