Donald Trump’s business fraud case in New York culminated in a significant ruling in February 2024. The civil case, brought by New York Attorney General Letitia James, accused Trump and his company of inflating the value of their assets to secure better loan terms and insurance benefits. Judge Arthur Engoron presided over the trial, which concluded with Trump being found guilty of numerous counts of financial fraud.
Judge Engoron ordered Trump to pay a $364 million penalty and barred him from serving as an officer or director of any New York corporation for three years.
Trump’s sons, Donald Trump Jr. and Eric Trump, were also implicated in the scheme and were each fined $4 million and barred from running any New York business for two years.
The court found that Trump and his co-defendants routinely exaggerated the value of their properties, including overstating the size of Trump’s triplex apartment in Trump Tower and the development potential of his Mar-a-Lago estate.
The case was part of a broader investigation initiated by AG Letitia James in 2022 under New York Executive Law § 63(12), which allows for the prosecution of persistent fraud in business dealings. The evidence presented showed that Trump’s financial statements exaggerated his wealth by as much as $3.6 billion in one year to obtain favorable financial benefits.
Throughout the trial, Trump maintained that his financial statements were accurate and that banks conducted their own due diligence. However, Judge Engoron highlighted Trump’s lack of contrition and remorse, describing his conduct as “bordering on pathological.” The judge also extended the tenure of an independent monitor overseeing the Trump Organization, ensuring ongoing scrutiny of its financial practices.
Trump’s legal team has announced plans to appeal the ruling, framing it as a politically motivated attack. This civil fraud case is one among several legal challenges Trump faces as he campaigns for the 2024 presidential election.