In a significant legal setback similar to Elon Musk’s recent court troubles, former President Donald Trump finds himself embroiled in an uncertain legal battle that threatens his castaway financial empire. Earlier in 2023, a U.S. judge ordered that Elon Musk must confront a lawsuit accusing him of deceiving former Twitter shareholders by failing to promptly disclose his investment in the social media platform.
Trump has also been accused of deceiving banks and insurers by manipulating the valuation of his assets, both inflating and deflating their values as it served his interests. And a New York judge has announced a verdict now ordering the former president to pay approximately $355 million in fines with a three-year business ban from New York.
Donald Trump Fined With $354.9 Million in Civil Fraud Case
On Friday this week, Donald Trump was ordered to pay $354.9 million in damages in the civil fraud case filed by Attorney General Letitia James in 2022. The ruling, while unlikely to impact his hold on the Republican nomination, prohibits Trump “from serving as an officer or director of any New York corporation or other legal entity” for three years.
He also can no longer seek a loan from the state for three years as well. Combined with judgments against other defendants like his son, Donald Trump Jr., the total amount set by Judge Arthur Engoron reaches $362 million. Additionally, his sons are also restricted from participating in any business activities in New York for two years.
Judge Arthur Engoron also mandated the installation of “an Independent Director of Compliance” at the Trump Organization. Attorney General Letitia James accused Donald Trump of a decade-long scheme to commit fraud in a 2022 civil fraud case, claiming that it allegedly benefited Trump and his company by $250 million. Testimony during the trial indicated that banks continued to loan money to the Trumps despite questionable financial figures.
Judge Engoron found Trump and his company liable for inflating financial values to secure better loan terms and other business advantages earlier in September 2023. Trump and his legal team have announced intentions to appeal the judgment, arguing that it represents a manifest injustice. They contend that the allegations are politically motivated and deny any wrongdoing.
Donald Trump Reacts Furiously to Ruling in Civil Fraud Case
Donald Trump unleashed a storm of dynamic statements on social media following the verdict in the civil fraud case with him and other defendants ordered to pay $354.9 million. However, the businessman, allegedly with a net worth of $2.9 billion, took to Truth Social to unleash a barrage of fiery statements.
He deemed the film as “Election Interference and tyrannical Abuse of Power by a Crooked Judge and Crooked Attorney General.” He shared a series of posts in both written and video formats, vehemently denouncing the ruling.
Trump claimed that there were no victims and no evidence of fraud presented during the trial, referring to it as “shocking and corrupt interference in the free markets for political gain.” Despite the ruling, Trump and his legal team have vowed to appeal the decision, signaling their intent to continue the legal battle.
In response to the verdict, Attorney General James asserted that “today justice has been served.” She emphasized that the ruling underscores the principle that no one, regardless of wealth, power, or political affiliation, is exempt from the law. “Everyone must play by the same rules,” James concluded.
