In a significant blow to Donald J. Trump, a New York judge has delivered a harsh ruling in the civil fraud case against the former president. Justice Arthur F. Engoron found Trump liable for conspiring to manipulate his net worth, imposing a penalty of nearly $355 million plus interest. This substantial sum could potentially deplete Trump’s available cash.

The judge, noting Trump’s “complete lack of contrition,” imposed various sanctions, including a three-year ban on Trump serving in top roles at any New York company, including his own Trump Organization. Additionally, Trump’s adult sons, including Eric Trump, who acts as the company’s de facto chief executive, face a two-year ban and hefty fines.

Justice Engoron criticized Trump and the defendants for their refusal to admit wrongdoing, stating that their lack of contrition bordered on the pathological. While the ruling does not render Trump bankrupt, as most of his wealth is tied up in real estate, it poses a significant threat to his business empire. Trump plans to appeal the financial penalty, but he must either produce the funds or secure a bond within 30 days.

The judge’s decision also extends the appointment of an independent monitor at the Trump Organization for three years, giving the monitor increased authority to detect fraud and scrutinize suspicious transactions. Trump’s legal team intends to challenge this aspect of the ruling.

Despite Trump’s combative response, Justice Engoron’s decision marks a major victory for New York Attorney General Letitia James, who pursued the case. The financial penalty, if upheld on appeal, could have a considerable impact on Trump’s post-presidential financial stability.

The judge’s ruling comes amid other legal challenges for Trump, including upcoming criminal charges in Manhattan. This civil fraud case, centering on allegations of inflating net worth to secure favorable treatment from lenders, represents a significant legal setback for the former president.

Source: Nytimes