New York Attorney General Letitia James celebrated a significant legal victory on Friday, Feb 16. 2024 after Justice Arthur F. Engoron of the New York State Supreme Court ruled in her favor in the civil fraud case against Donald Trump, several individual defendants, and entities of the Trump Organization.
The ruling orders the defendants to pay more than $450 million in total, including $363.8 million in disgorgement and pre-judgment interest.
In a statement released following the ruling, Attorney General James declared:
“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.”
The case exposed years of fraudulent practices by Donald Trump and his organization, aimed at inflating his net worth to enrich himself, his family, and his business.
Attorney General James emphasized the importance of holding powerful individuals accountable for their actions, stating:
“When powerful people cheat to get better loans, it comes at the expense of honest and hardworking people.”
Key measures imposed by the court include banning Donald Trump, Allen Weisselberg, and Jeffrey McConney from serving as officers or directors of any New York company for varying periods, and banning Weisselberg and McConney from financial management roles in New York companies permanently.
Donald Trump Jr. and Eric Trump are also banned from serving as officers or directors of any New York company for two years. Additionally, Trump and his companies are barred from applying for loans from New York banks or financial institutions for three years.
The ruling establishes stringent oversight measures, including the creation of an Independent Director of Compliance role at the Trump Organization to ensure adherence to financial reporting obligations.
An external monitor will continue to oversee the company’s financial dealings to prevent further fraud.
Attorney General James initiated the legal action after a three-year investigation, filing a lawsuit in September 2022 against Trump, Trump Organization companies, and senior executives for financial fraud and illegal conduct.
The ruling on Friday follows a motion for partial summary judgment granted in September 2023, which found Trump and the defendants had committed fraud by inflating asset values.
James said the successful outcome of the case underscores the commitment of her committment to uphold the rule of law and hold accountable those who engage in fraudulent activities, regardless of their stature or influence.
The investigation and legal proceedings were conducted by a dedicated team led by Senior Enforcement Counsel Kevin Wallace and supported by a group of legal professionals and analysts.
