Donald Trump must pay $354.9 million in penalties for fraudulently overstating his net worth to dupe lenders, a New York judge ruled on Friday (February 16), handing the former U.S. president another legal setback in a civil case that imperils his real estate empire, Reuters reports.
Justice Arthur Engoron, in a sharply worded decision issued after a contentious three-month trial in Manhattan, also banned Trump, who is running to regain the presidency this year, from serving as an officer or director of any New York corporation for three years. Trump's lawyer Alina Habba vowed to appeal.
Engoron canceled his prior ruling from September ordering the "dissolution" of companies that control pillars of Trump's real estate empire, saying on Friday that this was no longer necessary because he is appointing an independent monitor and compliance director to oversee Trump's businesses.
In the ruling, Engoron wrote that Trump and the other defendants in the case "are incapable of admitting the error of their ways."
"Their complete lack of contrition and remorse borders on pathological," Engoron wrote. "Instead, they adopt a 'See no evil, hear no evil, speak no evil' posture that the evidence belies."
The lawsuit brought by New York Attorney General Letitia James accused Trump and his family businesses of overstating his net worth by as much $3.6 billion a year over a decade to fool bankers into giving him better loan terms. Trump, who faces criminal charges in four other cases, has called the lawsuit a political vendetta by James, a Democrat.
Habba said in a statement that the ruling was a "manifest injustice" and the "culmination of a multi-year, politically fueled witch hunt" against Trump.
"This is not just about Donald Trump - if this decision stands, it will serve as a signal to every single American that New York is no longer open for business," Habba said.
Engoron also barred Trump and his companies named in the suit from applying for loans from any financial institution chartered in New York for three years, which could curtail his ability to obtain credit from major U.S. banks.
The judge said Trump and his companies' past run-ins with the law were part of the reason for the stiff penalties. The Trump Organization was found guilty of criminal tax fraud in 2022, and two other entities Trump ran had previously settled allegations of wrongdoing brought by New York state.
"Defendants are likely to continue their fraudulent ways unless the court grants significant injunctive relief," Engoron wrote.
The case was decided by the judge without a jury.
Trump and his adult sons, Don Jr. and Eric, were defendants in the case. Don Jr. and Eric Trump were each ordered by the judge to pay $4 million.
Eric and Don Jr.'s lawyer Clifford Robert called the decision a "gross injustice" and said he "firmly believes" it will be overturned on appeal.
