A New York judge ordered former U.S. President Donald Trump to pay $354.9 million in penalties for overstating his net worth to deceive lenders.
Justice Arthur Engoron also barred Trump from serving as an officer or director of any New York corporation for three years. The ruling, issued after a three-month trial in Manhattan, represents a significant legal blow to Trump’s real estate business.
Engoron overturned his earlier decision to dissolve Trump’s companies, opting instead to appoint an independent monitor and compliance director. He criticized Trump and the defendants for their lack of remorse, describing it as bordering on pathological.
New York Attorney General Letitia James accused Trump and his family businesses of inflating his net worth by up to $3.6 billion annually to secure favorable loan terms. Trump, facing criminal charges in four other cases, has denounced the lawsuit as a politically motivated attack by James, a Democrat.
Trump’s lawyer, Alina Habba, called the ruling a product of a political witch hunt and warned of its implications for business in New York. Engoron’s decision also prevents Trump and his companies from seeking loans from New York-chartered financial institutions for three years.
The judge cited Trump and his companies’ past legal issues, including a 2022 criminal tax fraud conviction of the Trump Organization, as part of his rationale for the stringent penalties.
Trump’s sons, Don Jr. and Eric, also defendants in the case, were each ordered to pay $4 million. Their lawyer, Clifford Robert, criticized the decision as unjust and expressed confidence in an appellate reversal.
The ruling comes as Trump leads the Republican presidential nomination race to challenge President Joe Biden in the Nov. 5 election. Trump’s conduct during his trial testimony, which the judge found compromised his credibility, and his ongoing legal challenges could impact his campaign.
Trump must now decide how to fund the judgment, potentially requiring the liquidation of assets or securing an appeal bond. His financial options include his stake in social media app Truth Social and his real estate portfolio, though campaign funds are off-limits for this purpose.
Trump used his court appearances to assert his innocence and criticize the legal process. He faces indictments in four criminal cases, including one in New York over hush money payments and charges related to his handling of classified documents and efforts to overturn the 2020 election loss.
The trial featured dramatic moments, including testimony from Trump’s former lawyer Michael Cohen and Trump’s own contentious exchanges with Engoron.
