Attorney General James Wins Landmark Victory in Case Against Donald Trump

Donald Trump

Former president Donald Trump and his associates ordered to pay more than $450 million for fraud and banned from serving in New York companies

New York, Feb 17, 2024 - In a historic ruling, New York Attorney General Letitia James won a landmark victory in her civil fraud case against former president Donald Trump, his adult sons, and his former executives, who were ordered to pay more than $450 million for engaging in years of financial fraud and illegal conduct.

The decision, issued by Justice Arthur F. Engoron of New York State Supreme Court on Wednesday, grants the following relief:

• Donald Trump and the other defendants are ordered to pay more than $450 million in total, which represents $363.8 million in disgorgement and pre-judgment interest;
• Donald Trump, Allen Weisselberg, and Jeffrey McConney are each banned from serving as an officer or director of any New York company for three years;
• Allen Weisselberg and Jeffrey McConney are additionally banned from serving in a financial management role in any New York company for life;
• Donald Trump, Jr. and Eric Trump are banned from serving as an officer or director of any New York company for two years;
• Donald Trump and his companies are banned from applying for loans from any New York bank or financial institution for three years;
• A new, Independent Director of Compliance role will be created at the Trump Organization to ensure the company establishes internal protocols and meets financial reporting obligations; and
• The current independent, external monitor will continue to oversee the company’s financial dealings and ensure this fraud cannot continue.

Attorney General James celebrated her victory in front of a courthouse, surrounded by cheering supporters and reporters. She released the following statement:

“Today, justice has been served. This is a tremendous victory for this state, this nation, and for everyone who believes that we all must play by the same rules — even former presidents.

For years, Donald Trump engaged in massive fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization. While he may have authored the ‘Art of the Deal,’ our case revealed that his business was based on the art of the steal.

When powerful people cheat to get better loans, it comes at the expense of honest and hardworking people. Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them. There simply cannot be different rules for different people.

Now, Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud. Because no matter how big, rich, or powerful you think you are, no one is above the law.”

The case, which was filed in September 2022, followed a three-year investigation by the Attorney General’s office, which found that Donald Trump and his associates repeatedly lied about the value of their assets and business dealings to obtain favorable loans, tax benefits, and insurance coverage.

The investigation also revealed that Donald Trump and his companies used fraudulent and illegal methods to inflate their revenues and profits, such as double-counting income, misrepresenting occupancy rates, and concealing expenses and liabilities.

The defendants tried to dismiss the case, arguing that it was politically motivated and that the statute of limitations had expired. However, the court rejected their arguments and allowed the case to proceed to trial.

The trial, which began in January 2024, lasted for four weeks and featured testimonies from several witnesses, including former Trump Organization employees, bankers, appraisers, and experts. The Attorney General’s office presented evidence from thousands of documents, emails, financial statements, and tax returns that exposed the defendants’ fraud.

The defendants did not testify in their own defense, and their lawyers attempted to discredit the witnesses and the evidence. They also claimed that the defendants relied on the advice of professionals and that any discrepancies in their valuations were due to market fluctuations and reasonable differences of opinion.

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However, the court found that the defendants’ arguments were not credible and that the evidence was overwhelming and convincing. The court concluded that the defendants engaged in a “pattern of persistent fraud” that spanned over a decade and involved multiple properties and transactions.

The court also noted that the defendants’ fraud was not only harmful to the lenders, insurers, and tax authorities, but also to the public, who were misled by the defendants’ false claims of success and wealth.

The court praised the Attorney General’s office for its “diligent and thorough” investigation and prosecution, and for its “courage and perseverance” in pursuing the case against the powerful and influential defendants.

The court’s decision is a major blow to Donald Trump and his family, who have faced multiple legal challenges and investigations since he left office in 2021. The decision also marks a historic achievement for Attorney General James, who has been a vocal critic of Donald Trump and his policies, and who has vowed to hold him accountable for his actions.

The defendants have not yet commented on the decision, but they are expected to appeal the ruling. The Attorney General’s office said that it will continue to enforce the court’s order and to monitor the defendants’ compliance.