Trump dealt blow in New York civil fraud trial: 5 key takeaways

Former President Trump’s business empire took a major hit Friday when a New York judge ordered him to pay more than $355 million on charges of conspiring to alter his net worth to collect tax and insurance benefits. Ta.

Judge Arthur Engoron had already found Trump, his company and executives, including the former president’s adult son, responsible for the fraud before the trial began. But Friday’s ruling imposed penalties that threaten Trump’s status as a billionaire and the future of his businesses that have catapulted him to fame.

Trump’s lawyers called the ruling a “clear injustice” and an “unwarranted political exercise,” but vowed to appeal.

“Their complete lack of remorse and remorse is pathological,” Engoron said in his 92-page judgment.

Here are five key takeaways from the resulting judgment.

huge fines imposed

Judge Arthur Engoron presides over former President Donald Trump’s civil business fraud trial as he waits to take the witness stand in New York Supreme Court, Monday, Nov. 6, 2023, in New York. (Jefferson Siegel/The New York Times, Associated Press, Pool)

Engoron imposed a series of eye-catching fines on Trump and his companies for conspiring with Trump’s top executives to defraud financial providers.

Trump and multiple corporate entities, including the Trump Organization and the Donald J. Trump Revocable Trust, were found to be liable for a combined $354,868,768.

That figure falls short of the $370 million the attorney general’s office asked a judge to force President Trump to pay. However, once interest rates are applied, the total order amount will be approximately $450 million, the agency said.

It’s a huge amount for Trump too. Combined with another $83.3 million judgment against him for libel against author E. Gene Carroll, the fine could be worth 11 percent to 13 percent of his estimated assets, or more. Forbes estimated the former president’s wealth at $2.6 billion, and the Bloomberg Billionaires Index valued him at $3.1 billion.

Trump’s adult sons, Donald Trump Jr. and Eric Trump, were each ordered to pay more than $4 million, and former Trump Organization chief financial officer Allen Weisselberg was ordered to pay $1 million. commanded.

Blocked from New York Business

Donald Trump Jr. sits in court before the continuation of his civil business fraud trial in New York Supreme Court on Monday, November 13, 2023. (Michael M. Santiago//pool photo via AP)

The order bars Mr. Trump from holding the highest office of any New York company for three years, and also means that Donald Trump Jr. and Eric Trump will face the same fate for two years.

Both of President Trump’s sons Currently The decision prompted executive vice presidents at the Trump Organization to question the Trump family’s business leadership.

Mr. Weisselberg was also prohibited from serving as an officer or director of any New York corporation or other corporation for three years. He and his former manager, Jeffrey McConney, could be banned for life from “engaging in any financial management function” at the New York company.

President Trump and his companies will be prohibited from applying for loans from any state-registered institutions for three years.

Engoron wrote in his decision that his choice to impose harsh injunctive relief was driven in part by the fact that the Trump Organization has a history of “corporate fraud.” He said the organization agreed that Weisselberg would remain in a “key role” as chief financial officer for five months after he pleaded guilty to fraud at the company in August 2022. He pointed out that it was allowed.

“This is not defendant’s first rodeo,” Engoron wrote.

Emphasis on the credibility of witnesses

Judge Arthur F. Engoron will preside over former President Donald Trump’s civil business fraud trial in New York Supreme Court on Wednesday, October 18, 2023. (Gina Moon/Pool Photo via AP)

The judgment discusses in detail how the judge viewed the credibility of key witnesses.

Engoron saved some of his harshest criticism of Trump and his son Eric.

When the former president took the stand in November, he repeatedly attacked Engoron and New York State Attorney General Letitia James (D), often drawing the judge’s ire and admonition. Trump’s testimony bounced around unrelated topics, from calling his opponents “Trump haters” to defending efforts to protect the country from Russia and China during his presidency.

“Overall, Donald Trump answered few questions and frequently interjected long, unrelated speeches on issues far beyond the scope of the trial,” Engoron said in his ruling. “His credibility was seriously undermined as he refused to answer questions directly, or in some cases, did not answer them at all.”

The judge also said that Eric Trump’s credibility was “severely undermined” when he lied during his testimony when asked whether he knew about his father’s financial statements. At trial, State’s Attorney Andrew Ammar said that Eric Trump had “no involvement” in the financial statements, after which he received information from another company executive in 2013 that was needed to fill out former President Trump’s financial statements. He pointed out that he had received an email asking for.

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Engoron expressed mixed feelings about the testimony of the former president’s daughter Ivanka Trump, who was removed as a defendant in the case, calling her a “thoughtful, articulate, level-headed witness.” Still, in cross-examination of the state’s attorney and her defense “suspect,” he called her “with inconsistent memories.”

Notably, Michael Cohen, President Trump’s former fixer who turned against Trump and was a witness in the fraud case, pleaded guilty to false statements and other charges. First, it is something that the judge has judged to be reliable.

“Although the animosity between the witness and the defendant was evident, giving Cohen an incentive to lie, the court found Cohen’s relaxed manner of testifying, the general plausibility of his statements, and most importantly, , we find Cohen’s testimony reliable because of the way his testimony was supported by other trial evidence,” Engoron wrote.

The judge added: “Michael Cohen told the truth.”

Increased scrutiny of President Trump’s business empire

Former President Donald Trump arrives at Manhattan Criminal Court in New York on Thursday, February 15, 2024. (AP Photo/Mary Altafer)

The Engoron ruling strengthens independent oversight of President Trump’s business empire, creating a two-tier system going forward.

Former U.S. District Judge Barbara Jones will continue to serve as an independent monitor of the Trump Organization for at least three more years, but Engoron said her observations over the past 14 months indicate that additional oversight is needed. He said he was expanding his role.

The judge said the Trump Organization must get Jones’ approval before handing over financial information to third parties, rather than the traditional process of seeking review. He said that there is.

“Judge Jones will submit a proposed order to the court outlining the specific powers and obligations of defendants that he believes are necessary to maintain the integrity of defendants in order to ensure a productive and enhanced surveillance system in the future. ” ordered Mr. Engoron.

He also ordered the Trump Organization to create an independent compliance director at the company’s expense. Mr. Jones will recommend candidates for the position and ultimately oversee their work.

President Trump’s business dissolution is reversed

Former President Trump leaves Trump Tower in New York on Thursday, February 15, 2024. (AP Photo/Brian Woolston)

Before the trial began, Mr. Engoron had already ordered Mr. Trump’s New York business certificate revoked, declaring him an apparent loser in the case.

The cancellation had been suspended by the state Court of Appeals, so the process had not moved forward. But if left unchecked, Trump could have lost control of his famous properties, including Trump Tower and some golf courses.

However, Engoron withdrew on Friday, revoking the previous decision.

“This court did not recklessly order the cancellation of a company. Article 63(12) of the Administrative Law expressly authorizes the court to do this, but doing so would pose serious economic concerns. may cause this,” Engoron wrote.

But some of Mr. Trump’s businesses could still be dissolved, and a judge has now referred the matter to a newly expanded oversight system.

Engoron said Jones and the new independent compliance director could conduct “individual reviews” of restructuring or dissolving Trump’s companies if necessary.