In a 92-page order issued late Friday, Judge Arthur Engoron inflicts legal and financial damage on Donald Trump that could permanently damage the business empire that propelled him to the presidency. Ta.
Beyond the staggering $355 million he was ordered to pay to President Trump (likely reaching more than $450 million, including interest), Engoron was temporarily released from Trump and his sons. It stripped them of their ability to lead their own businesses or apply for loans.
The fine, which New York State Attorney General Letitia James hailed as an effective way to “ensure this fraud cannot continue,” comes as the former president embarks on an expensive presidential campaign as legal proceedings continue. This would leave the Trump Organization in legal, financial, and personnel limbo. Fight.
President Trump vowed Friday: “We'll get back to work.” “We're going to appeal, and I think we'll be successful. Because frankly, if we're not successful, New York state will cease to exist.”
Mr. Trump's lawyers plan to appeal the ruling, arguing that a higher court will reverse Mr. Engoron's sentence.
“If left in place, this ruling will only accelerate the exodus of businesses from New York,” a Trump Organization spokesperson said in a statement.
long appeal
Mr. Trump and his lawyers have already vowed to appeal Mr. Engoron's decision to the Appellate Division of the First Department of Justice in New York City.
The court scored an early victory in Trump's case last year by suspending the revocation of Trump's business certificates, which Engoron had ordered in a September summary judgment. On Friday, Mr. Engoron reversed course on his actions, revoking some of his previous orders but placing the Trump Organization under independent oversight for at least three years.
“This was a remedy that was very carefully prepared by the judge,” said Josh Naftalis, a former federal prosecutor, adding that the early punishment would likely be subject to appeal.
“It's much harder to get, even for the president.” [the new ruling] It was rejected on appeal,” Naftalis said.
Trial attorney Ryan Saba said Engoron's lengthy opinion relied heavily on the facts of the case, including a lengthy section on the testimony of each witness, and could strengthen the case on appeal. .
“This courtroom sat one yard away from witnesses on the stand, allowing us to see them more clearly and assess their credibility,” Engoron said as fact-finder during jury trials. Mr. Saba talked about his role. “If the appeal were based on factual challenges, it would be very difficult to overturn the findings of this opinion.”
Even if the first appeal fails, President Trump could ask the state's highest court, the New York Court of Appeals, to consider the case, which could take years. This approach would give Trump more time to fund the fine, but the fine would accrue annual interest and only get more expensive over time.
Mr. Trump's lawyers praised the First Department's previous rulings that limited the statute of limitations in the case and expressed confidence in future appeals.
President Trump's lawyer, Chris Kiss, told ABC News: “President Trump obviously intends to appeal, and the Appellate Division will ultimately resolve the countless catastrophic errors made by the trial court without being bound by law or reality.” I remain confident that the situation will be corrected.”
Not so family run
While Mr. Trump's lawyers fight Mr. Engoron's opinion in court, the former president's namesake business faces its own challenges, including a lack of leadership.
The Trump Organization, currently run by senior vice presidents Donald Trump Jr. and Eric Trump, on Friday removed its top executives after Engoron banned them from leading the New York company for two years. lost. Engoron also prohibited President Trump from applying for loans from New York banks, severely restricting his access to capital.
“He's stifled at the personnel level and at the capital level,” Naftalis said.
President Trump's latest financial disclosures show the former president still owes money to Deutsche Bank but has received a new loan from California-based Axos Bank, potentially offering the president a way around fines. There is.
Additionally, Naftalis said Engoron's decision raises red flags for potential lenders who may not trust the financial statements prepared by the Trump Organization.
“In effect, I think what this means is that banks don't want to do business with them because, in effect, they have a scarlet letter on their chest,” Naftalis said.
Engoron ordered Judge Barbara Jones to continue to monitor the company, appoint a compliance director and strengthen independent oversight of the company. In addition to Mr. Jones' past responsibilities, Mr. Engoron ordered that the Trump Organization must obtain prior approval from Mr. Jones before disclosing financial information to third parties.
Potential lack of funds
If Trump's appeal fails to limit the fine imposed by Engoron, the former president may not be able to find the cash to cover the fine and may be forced to sell some of his valuable buildings. There is sex. Trump was ordered to pay columnist E. Jean Carroll $83.3 million last month in a civil lawsuit, increasing his financial obligations.
“This is a pretty significant blow to overall liquidity for everyone, regardless of the amount of money they have,” Saba said.
According to the University of Illinois, even if Trump is elected president nine months later, there is no way out of disgorgement if he loses his appeal in the fraud case — and legal penalties are generally not waived, so he cannot declare bankruptcy. is unlikely to solve the fiscal problem, the University of Illinois says. Robert Lawless Professor of Law.
“There are remedies a person with a judgment can take to force payment, everything from seizing property to collecting the wages of the person who owes the money,” Lawless said.
