Trump's Legal Woes: Fraud Case And Broken Laws

Former US President Donald Trump has been involved in a number of civil lawsuits and criminal cases. In February 2024, a New York judge ruled that Trump must pay $354.9 million in penalties for civil fraud, specifically for overstating his net worth to dupe lenders. Trump has also been charged in four criminal cases, including one in New York related to hush money paid to a porn star. Trump has pleaded not guilty in these cases.

Trump's net worth was overstated by up to $3.6 billion per year over a decade

In a civil fraud case, former US President Donald Trump was accused of overstating his net worth by as much as $3.6 billion per year over a decade (from 2011 to 2021). This allegation was made by New York Attorney General Letitia James, who filed a $250 million lawsuit against Trump and his family's real estate company.

The lawsuit accused Trump and his associates of falsifying financial statements, committing insurance fraud, and making false entries in business records. These actions allegedly allowed them to obtain better loan terms and manipulate taxes for the Trump Organization.

In February 2024, a New York judge ruled that Trump must pay $354.9 million in penalties for fraudulently overstating his net worth. The judge, Arthur Engoron, also banned Trump from serving as an officer or director of any New York corporation for three years.

The decision came after a contentious three-month trial, during which Trump's testimony was criticized by Engoron for his refusal to answer questions directly and his frequent irrelevant interjections.

Trump has denied any wrongdoing and has called the lawsuit a political vendetta. He has vowed to appeal the decision.

Trump's company sent exaggerated financial figures to banks

In 2024, a New York judge ruled that Donald Trump must pay $354.9 million in penalties for civil fraud. The fraud case against Trump was brought by New York Attorney General Letitia James, who accused Trump and his family businesses of exaggerating his net worth by as much as $3.6 billion a year over a decade to dupe bankers into giving him better loan terms.

Trump's company sent exaggerated financial figures about his net worth to Deutsche Bank and others. These statements were key to his approval for a $125 million loan in 2011 for his Doral, Florida, golf resort and a $107 million loan in 2012 for his Chicago hotel and condo skyscraper. The statements also helped Trump secure bigger loans and lower interest rates.

In his ruling, Justice Arthur Engoron wrote that Trump and the other defendants in the case were "incapable of admitting the error of their ways". He added that their "complete lack of contrition and remorse borders on pathological".

In his defence, Trump has claimed that banks he did business with weren't harmed, made lots of money in his deals, and "to this day have no complaints". He has also emphasised the disclaimers on the documents that alerted lenders to do their own homework.

Trump's company continued to send erroneous financial statements after the fraud was discovered

In February 2024, a New York judge ruled that former US President Donald Trump must pay $354.9 million in penalties for fraudulently overstating his net worth to dupe lenders. The civil fraud case was brought against Trump by New York Attorney General Letitia James, who accused Trump and his family businesses of overstating his net worth by as much as $3.6 billion a year over a decade to fool bankers into giving him better loan terms.

Trump's company stopped sending exaggerated financial figures about his net worth to Deutsche Bank and others at least two years ago, but a court-appointed monitor noted that was only after he was sued and that other financial documents continued to contain errors and misrepresentations.

In his ruling, Justice Arthur Engoron wrote that Trump and the other defendants in the case were "incapable of admitting the error of their ways" and that their "complete lack of contrition and remorse borders on pathological".

In addition to the $354.9 million in penalties, Engoron also banned Trump from serving as an officer or director of any New York corporation for three years. The judge also barred Trump and his companies from applying for loans from any financial institution chartered in New York for three years, which could curtail his ability to obtain credit from major US banks.

Trump's adult sons, Don Jr. and Eric, who were also defendants in the case, were ordered to pay $4 million each. The judge described the Trump Organization's past run-ins with the law, noting that the company was found guilty of criminal tax fraud in 2022.

Trump's company was fined $354.9 million in penalties

In February 2024, a New York judge ordered Donald Trump and his companies to pay $354.9 million in penalties, finding that they had engaged in a years-long scheme to defraud banks and others by inflating his wealth. The judge, Arthur Engoron, also barred Trump from serving as an officer or director of any New York corporation for three years and from obtaining loans from banks registered in New York State.

The lawsuit, brought by New York Attorney General Letitia James, accused Trump and his family businesses of overstating his net worth by as much as $3.6 billion a year over a decade to obtain better loan terms. Engoron described Trump and his co-defendants as "incapable of admitting the error of their ways" and said their "complete lack of contrition and remorse borders on pathological".

The penalty is a blow to the image of Trump as a successful businessman, which helped him to become president. It is also a financial setback, although Trump won't have to pay out the money immediately as an appeals process is underway. If he is ultimately forced to pay, the magnitude of the penalty, on top of earlier judgments, could dramatically diminish his financial resources.

Trump's lawyers have vowed to appeal the decision, with his attorney, Alina Habba, calling the verdict "manifest injustice" and "the culmination of a multi-year, politically fueled witch hunt". Trump himself called the verdict a "Complete and Total sham".

Trump's adult sons were fined $4 million each

In February 2024, a New York judge ordered Donald Trump to pay $354.9 million in penalties for civil fraud. The former US president was found to have fraudulently overstated his net worth to dupe lenders. Trump's adult sons, Don Jr. and Eric, were also defendants in the case and ordered to pay $4 million each in fines. The judge also barred them from serving as executives in New York for two years.

The lawsuit, brought by New York Attorney General Letitia James, accused Trump and his family businesses of overstating his net worth by as much as $3.6 billion a year over a decade to fool bankers into giving him better loan terms. The judge, Arthur Engoron, described the Trumps' conduct as a "complete lack of contrition and remorse" that "borders on pathological".

Trump's lawyer, Alina Habba, vowed to appeal the decision. Habba claimed that the lawsuit was a political vendetta by James, a Democrat.

The civil fraud case is one of four criminal cases that Trump is facing this year as he campaigns to become president again.

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