Trump and sons ordered to pay $364 million in business fraud case and to stop operating in New York for 3 years
Former President Donald Trump and his sons were ordered to pay $364 million over a lawsuit in a New York state Supreme Court on Friday.
The civil lawsuit was filed by New York Attorney General Letitia James and claimed that Trump defrauded banks and other organizations by over-estimating the value of his properties in order to secure favorable bank loans and other benefits.
New York state Supreme Court Judge Arthur Engoron had previously ruled in September that Trump had indeed committed fraud and on Friday, he issued his ruling on the penalty.
"There is overwhelming evidence from both interested and non-interested witnesses, corroborated by documentary evidence, that the buck for being truthful in the supporting data valuations stopped with the Trump Organization, not the accountants," the judge wrote.
Engoron said in the 91-page ruling that the president's son Eric Trump is liable for the amount of $4 million and also that his other son Donald Trump Jr. is liable for the amount of $4 million.
The ruling also forbids Trump from "serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years."
Trump's attorneys argued that the real estate valuations were very subjective and also claimed that there were no victims identified in the case.
The case became sensationalized after the former president vehemently criticized Engoron's clerk for posting a photograph of herself with Democratic Senate Majority Leader Chuck Schumer of New York. Engoron fined Trump and threatened to issue greater penalties unless he stopped attacking the judge and his clerks.
One minor victory for Trump is that the judge rescinded a previous order that would invalidate any business certificates for Trump and his organization in the state of New York. That penalty was shot down and delayed by an appeals court in October.
Engoron excoriated the defendants for not showing remorse in the case.
"Their complete lack of contrition and remorse borders on pathological," he wrote. "They are accused only of inflating asset values to make more money. The documents prove this over and over again. This is a venial sin, not a mortal sin. Defendants did not commit murder or arson. They did not rob a bank at gunpoint. Donald Trump is not Bernard Madoff. Yet, defendants are incapable of admitting the error of their ways."
Alina Habba, the former president's attorney, called the ruling a "a manifest injustice — plain and simple."
A spokesperson for the Trump Organization decried the ruling as a "a gross miscarriage of justice. The Trump Organization has never missed any loan payment or been in default on any loan."
Former federal prosecutor Renato Mariotti described the order as "a devastating result for Trump and his businesses" on CNN.
Here's more about the Trump fraud sentence:
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