A New York judge imposed a $364 million penalty on Donald Trump after finding he engaged in years of fraudulent practices that exaggerated his wealth. Justice Arthur Engoron ruled that Trump repeatedly misled lenders and others with inflated financial statements to secure better loan terms and project funding.
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In the civil lawsuit led by Attorney General Letitia James, Engoron determined Trump’s company willfully provided false valuations of assets like his Trump Tower triplex and Mar-a-Lago resort. By embellishing his net worth, Trump gained financial advantages constituting persistent illegal conduct under state law.
Alongside the hefty fine, Trump faces a 3-year ban from serving as an officer or director of any New York corporation. While his attorneys plan to appeal, the decision underscores accountability for dubious business dealings during Trump’s pre-political career.
The suit accused Trump of artificially inflating his wealth by up to $3.6 billion in some years through deceptive annual financial statements. He secured favourable interest rates and bank loan terms by claiming a higher net worth than factual.
The AG’s office contends that Trump effectively lied to gain funding he couldn’t have obtained otherwise. It also alleged he saved significant sums through lower interest costs thanks to the exaggerated valuations illegally misrepresenting his means.
Trump defended the statements as accurate, denying any intent to mislead. He argued that banks independently vetted his finances before approving loans. Trump blamed external accountants for not flagging discrepancies, claiming he faced no liability for their oversight.
But Engoron previously found Trump’s statements fraudulent regardless of disclaimers, citing misstatements concerning assets dimensions and development potential. Trump’s team insists all allegations exceed the statute of limitations for prosecution.
The watershed ruling adds to Trump’s mounting legal woes as he bids again for the presidency. He faces criminal charges related to the Jan 2021 Capitol attack, mishandling of government records, and election interference in multiple states.
While the civil penalties don’t entail prison time, they threaten financial consequences. A jury recently ordered Trump to pay $83 million over defaming a sexual assault accuser. His company also faces fines for executive tax fraud.
By requiring Trump to pay damages worth hundreds of millions to the state over his past business machinations, authorities have held the ex-president accountable through hard-hitting civil action. But with Trump still commanding immense popularity on the right, even legal storms may fail to dampen his electoral hopes in 2024.
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