John AdoyiFormer United States President Donald Trump and his family have been dealt a major blow in a New York state court, with a judge barring them from conducting business in the state for three years and imposing a $355 million fine.
The penalty stems from a fraud case brought by New York Attorney General, Letitia James, which accused Trump and his company of inflating his net worth by billions of dollars to deceive banks and insurers. The trumps denied any wrong doing.
Judge Arthur Engoron of the New York court delivered the verdict on Friday, concluding a months-long trial that began in October 2023. He found Trump and his associates liable for “persistent and repeated fraud,” including falsifying business records, issuing false financial statements, and insurance fraud.
The consequences are significant if the verdict stands. Trump will be forced to temporarily give up control of his iconic Trump Tower and other New York properties because he is barred from serving as a director of any company in the state for 3 years, Fox News reported. Additionally, his two eldest sons, Donald Jr. and Eric, are prohibited from holding leadership positions in New York corporations for two years.
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The former Chief Financial Officer of the Trump Organization, Allen Weisselberg, and former corporate controller Jeffrey McConney were also affected by the judgement. They were “permanently” barred from serving in financial control functions or as directors of any New York corporation or similar business entity for three years.
In response to the ruling, Trump’s lawyer Christopher Kise criticized the court for ignoring the law and facts, stating that the case was part of an unjust political crusade. Kise emphasized that the evidence showed Trump’s net worth exceeded what was reported in his financial statements and that the transactions were all highly profitable.
Kise announced that Trump would appeal the decision, expressing confidence that the Appellate Division would correct the errors made by the trial court. Another Trump’s attorney, Alina Habba also condemned the verdict as a “manifest injustice” and a politically fueled witch hunt. Both lawyers expressed concerns about the impact of the ruling on the business community and the rule of law in the United States.
President Trump who also has court cases in other states, described the trial as a “witch hunt,” accusing both Judge Engoron and Attorney James of serving as political operatives for Democrats.
Fox News reported that the Trump family denied any wrongdoing throughout the trial, with the former president saying his assets had been undervalued. Trump’s legal team insisted that his financial statements had disclaimers, and made it clear to banks that they should conduct their own assessments.
Trump has said his financial statements were “perfect,” and stressed that the bank loans were repaid and are “as happy as can be.”
The New York Times reported that even if he appeals the case, Trump will have to either come up with the fine or secure a bond within 30 days. The ruling will not render him bankrupt, because most of his wealth is in real estate, which altogether is worth more than the penalty.
