In a major legal defeat for former President Donald Trump, Judge Arthur Engoron has ruled that Trump must pay over $350 million and is barred from conducting any business in New York State for three years.
The landmark ruling on Friday not only threatens to drain Trump’s available cash reserves but also marks a critical juncture in his business career, potentially altering his future endeavors in the state’s commercial landscape.
The New York Times reported:
Not only did Justice Engoron impose a three-year ban preventing Mr. Trump from serving in top roles at any New York company, including his own, but the judge also applied that punishment to the former president’s adult sons for two years. One of the sons, Eric Trump, is the Trump Organization’s de facto chief executive, and the ruling throws into doubt whether any member of the family can run the business in the near term.
Mr. Trump will appeal the financial penalty — which could climb to $400 million or more once interest is added — but will have to either come up with the money or secure a bond within 30 days. The ruling will not render him bankrupt, because most of his wealth is tied up in real estate.
Mr. Trump will also most likely ask an appeals court to halt the restrictions on him and his sons from running the company while it considers the case.
But there might be little Mr. Trump can do to thwart one of the judge’s most consequential punishments: extending for three years the appointment of an independent monitor who will be the court’s eyes and ears at the Trump Organization, watching for fraud and second-guessing transactions that look suspicious.
AdvertisementAdvertisementMr. Trump’s lawyers have railed against the monitor, Barbara Jones, saying that her work has already cost the business more than $2.5 million; the decision to extend her oversight of the privately held family company could enrage the Trumps, who see her presence as an irritant and an insult.
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The New York Attorney General, Letitia James, also accused Trump and his company of inflating asset values on financial statements provided to lenders, insurers, and tax authorities to obtain benefits such as loans and tax deductions.
Judge Engoron played a critical role in this legal saga, overseeing the proceedings and making several key rulings. Notably, he ordered Trump to comply with subpoenas for documents and testimony related to the investigation, and at times, he has ruled against Trump’s legal arguments aiming to limit the scope of the investigation or dismiss the case outright.
While the case has seen various developments, including appeals and legal challenges, Judge Engoron’s rulings have significantly shaped its trajectory. The case has been highly polarizing. Supporters of Trump have criticized the investigation and Engoron’s rulings as politically motivated.
This is a developing story…
