A judge in New York has mandated that Donald Trump, his business, and two of his children pay over $354 million for inflating the worth of their real estate holdings.
Barring Business Activities
The ruling also bars them from conducting any business activities within the state, stemming from allegations of widespread fraud related to the over-valuation of their real estate holdings.
Fraudulent Financial Practices
Justice Arthur Engoron, in his decision, pointed out that the defendants had knowingly provided false financial information to secure loans under more favorable terms.
Misleading Financial Statements
According to the Judge, This misconduct led to the issuance of misleading financial statements.
Facts Ignored
The judge pointed out that the experts and witnesses summoned by Trump for testimony had blatantly ignored the facts.
Failed to accept Responsibility
According to the court’s findings, Trump and the other defendants “failed to accept responsibility or to impose internal controls to prevent future recurrences” of fraud.
A Series of Legal Setbacks
This ruling adds to Trump’s legal woes following a recent $83 million penalty in a civil defamation case to compensate E. Jean Carroll.
Deceptive Practices
Engoron had previously mandated a stop to the business operations, concluding that Trump engaged in deceptive practices and overinflated real-estate valuations from 2011 to 2021, which amounted to fraud.
Order Suspended
However, this order was temporarily suspended by an appeals court pending a trial overseen by Engoron in the autumn to assess the damages.
Defendants and Penalties
The judgment requires Trump and his trust to pay $354 million, while his sons, Eric and Donald Jr., each owe $4 million. Allen Weisselberg, the former CFO, has been fined $1 million.
Three Year Ban
The judge also imposed a three-year ban on Trump from conducting business in New York State.
Independent Monitor
An essential part of the court’s ruling is the three-year extension of Judge Barbara Jones’ tenure as an independent monitor overseeing Trump-owned businesses.
Jones Criticized
Jones has faced criticism from the Trump legal team, yet Justice Engoron highlights in his ruling that they were instrumental in recommending her for the position.
Both Side Agreed
Engoron stated, “The court did not appoint Judge Jones randomly or arbitrarily or by happenstance. Rather, she was the only one of the three candidates that both sides proposed for the position of independent monitor.”
Witness Compensation
In the footnotes on one of the 92 pages, Justice Engoron notes the compensation received by one of Trump’s expert witnesses.
Financial Analyst
Trump’s legal team utilized Eli Bartov, a professor at New York University, to discuss financial accounting, credit analysis, and valuation.
Testimony Cost
The footnote indicates that Bartov “bills at the rate of $1,350 per hour and has billed approximately 650 hours in this engagement.” This amounts to over $877,000 paid to Bartov for his testimony.
Attempt to Justify Misstatement
The judge said: “By doggedly attempting to justify every misstatement, Professor Bartov lost all credibility in the eyes of the court.”
Credible Testimony
The judge also noted that the testimony of Michael Cohen, Trump’s former fixer and an important witness on behalf of the plaintiff, was credible.
Financial Hit
This ruling represents a substantial financial hit to Trump and a victory for Attorney General Letitia James, who filed the lawsuit.
Four Criminal Charges
Trump is also contending with four criminal trials while eyeing a return to the presidency. He has pleaded not guilty to all charges.
Heated Exchanges
The trial showcased Trump’s heated exchanges and criticism of the judge and his clerk, resulting in a $15,000 fine for breaching gag orders.
“This Court Listened”
During the trial and his testimony, Trump complained that Engoron wasn’t listening to him, but the judge dismissed this notion, stating, “This Court listened carefully to every witness, every question, every answer.”
Property Valuation Discrepancies
Engoron highlighted gross overvaluation in Trump’s property claims, contrasting them with much lower appraisals and market assessments.
Defending these Valuations
These included vast overestimates of properties like Seven Springs LLC and Trump Park Avenue, among others, with Trump defending these valuations as inconsequential to lenders.
Detached from Reality
Engoron dismissed Trump’s property valuations as detached from reality in a detailed critique, emphasizing the legal and ethical obligations to present truthful financial information.
Discrepancy Deemed Fraudulent
“A discrepancy of this order of magnitude by a real estate developer sizing up his own living space of decades, can only be considered fraud,” wrote Engoron.
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