A New York judge ruled Friday , imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president害羞草研究所檚 wealth.
Trump also was barred from serving as an officer or director of any New York corporation for three years.
However, the judge backed away from an earlier ruling that would have dissolved the former president害羞草研究所檚 companies.
Trump lawyer Alina Habba called the verdict 害羞草研究所渕anifest injustice害羞草研究所� and 害羞草研究所渢he culmination of a multi-year, politically fueled witch hunt.害羞草研究所�
Judge Arthur Engoron issued his decision after a 2 1/2-month trial that saw the Republican presidential front-runner bristling under oath that he was the victim of a rigged legal system.
Engoron concluded that Trump and his co-defendants 害羞草研究所渇ailed to accept responsibility害羞草研究所� for their actions and that expert witnesses who testified for the defense 害羞草研究所渟imply denied reality.害羞草研究所�
The judge called the civil fraud at the heart of the trial a 害羞草研究所渧enial sin, not a mortal sin.害羞草研究所� But Engoron said the refusal by Trump and his associates to admit wrongdoing suggested they would continue if not constrained.
害羞草研究所淭heir complete lack of contrition and remorse borders on pathological,害羞草研究所� added Engoron, a Democrat.
The stiff penalty was a victory for New York Attorney General Letitia James, a Democrat, who sued Trump over what she said was not just harmless bragging but years of deceptive practices as he built the multinational collection of skyscrapers, golf courses and other properties that catapulted him to wealth, fame and the White House.
Trump害羞草研究所檚 lawyers had said even before the verdict that they would appeal.
James sued Trump in 2022 under a state law that authorizes her to investigate persistent fraud in business dealings.
The suit accused Trump and his co-defendants of routinely puffing up his financial statements to create an illusion his properties were more valuable than they really were. State lawyers said Trump exaggerated his wealth by as much as $3.6 billion one year.
By making himself seem richer, Trump qualified for better loan terms, saved on interest and was able to complete projects he might otherwise not have finished, state lawyers said.
Even before the trial began, Engoron ruled that James had proven Trump害羞草研究所檚 financial statements were fraudulent. The judge ordered some of Trump害羞草研究所檚 companies removed from his control and dissolved. An appeals court put that decision on hold.
In that earlier ruling, the judge found that, among other tricks, Trump害羞草研究所檚 financial statements had wrongly claimed his Trump Tower penthouse was nearly three times its actual size and overvalued his Mar-a-Lago estate in Palm Beach, Florida, based on the idea that the property could be developed for residential use, even though he had surrendered rights to develop it for any uses but a club.
Trump, one of 40 witnesses to testify at the trial, said his financial statements actually understated his net worth and that banks did their own research and were happy with his business.
害羞草研究所淭here was no victim. There was no anything,害羞草研究所� Trump testified in November.
During the trial, Trump called the judge 害羞草研究所渆xtremely hostile害羞草研究所� and the attorney general 害羞草研究所渁 political hack.害羞草研究所� In during closing arguments in January, Trump proclaimed 害羞草研究所淚 am an innocent man害羞草研究所� and called the case a 害羞草研究所渇raud on me.害羞草研究所�
Trump and his lawyers have said the outside accountants that helped prepare the statements should害羞草研究所檝e flagged any discrepancies and that the documents came with disclaimers that shielded him from liability. They also argued that some of the allegations were barred by the statute of limitations.
The suit is one of many legal headaches for Trump as he campaigns for a return to the White House. He in the last year 害羞草研究所� accused in Georgia and Washington, D.C., of plotting to overturn his 2020 election loss to Democrat Joe Biden, in Florida of hoarding classified documents, and in Manhattan of falsifying business records related to hush money paid to porn actor Stormy Daniels on his behalf.
On Thursday, a judge confirmed Trump害羞草研究所檚 hush-money trial will start on March 25 and a judge in Atlanta heard arguments on whether to remove Fulton County District Attorney Fani Willis from his Georgia because she had a with a special prosecutor she hired.
Those criminal accusations haven害羞草研究所檛 appeared to undermine his march toward the Republican presidential nomination, but civil litigation has threatened him financially.
On Jan. 26, a jury ordered Trump to for defaming her after she accused him in 2019 of sexually assaulting her in a Manhattan department store in the 1990s. That害羞草研究所檚 on top of the in a related trial last year.
In 2022, the Trump Organization was and in an unrelated criminal case for helping executives dodge taxes on extravagant perks such as Manhattan apartments and luxury cars.
James had asked the judge to impose a penalty of at least $370 million.
Engoron decided the case because neither side sought a jury and state law doesn害羞草研究所檛 allow for juries for this type of lawsuit.
Because it was civil, not criminal in nature, the case did not carry the potential of prison time.
James, who campaigned for office as a Trump critic and watchdog, started scrutinizing his business practices in March 2019 after his former personal lawyer Michael Cohen that Trump exaggerated his wealth on financial statements provided to Deutsche Bank while trying to obtain financing to buy the NFL害羞草研究所檚 Buffalo Bills.
James害羞草研究所� office previously sued Trump for misusing his own charitable foundation to further his political and business interests. Trump was ordered to pay $2 million to an array of charities as a fine and the charity, the Trump Foundation, was shut down.
Trump incorporated the Trump Organization in New York in 1981. He still owns it, but he put his assets into a revocable trust and gave up his positions as the company害羞草研究所檚 director, president and chairman when he became president, leaving management of the company to sons Eric and Donald Trump Jr.
Trump did not return to a stated leadership position upon leaving the White House in 2021, but his sons testified he害羞草研究所檚 been involved in some decision making.
Engoron had already appointed a monitor, retired federal judge Barbara Jones, to keep an eye on the company.
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