In a dramatic turn of events, the New York attorney general, Letitia James, has requested a staggering $370 million penalty against former President Donald J. Trump following a civil fraud trial. The trial, which began in October and concluded last month, alleged that Trump engaged in unlawful conduct by inflating his net worth to secure favorable treatment from banks and insurers.
The penalty sought by James far exceeds the initial estimate of $250 million, indicating the gravity of the alleged misconduct. The trial revealed evidence suggesting that Trump had gained the substantial sum through deceptive financial practices. However, Trump’s legal team vehemently denies any wrongdoing, asserting that the attorney general failed to prove her case.
Christopher M. Kise, a lawyer representing Trump, criticized the requested amount as “unconscionable, unsupported by the evidence, untethered from reality, and unconstitutionally excessive.” He insisted that James had not established any real-world harm resulting from Trump’s actions.
The trial, presided over by Judge Arthur Engoron, has already seen a summary judgment ruling holding Trump and his co-defendants liable for persistent and repeated fraud. As a consequence, Engoron ordered the cancellation of Trump’s business certificates in New York. Despite the adverse ruling, Trump has appealed the decision, leading to a temporary halt in the dissolution of his companies.
In addition to the financial penalty, James is seeking a five-year ban for Trump’s sons, Donald Trump Jr. and Eric Trump, preventing them from participating in the New York real estate industry or serving as corporate officers or directors. The attorney general argues that such a ban is necessary and appropriate.
Trump’s attorneys countered these claims in their filings, arguing that most of the transactions cited in the complaint were beyond the statute of limitations. They contended that Trump’s financial statements did not contain material misstatements and that the attorney general failed to demonstrate any tangible impact on the transactions.
The post-trial briefs filed on Friday set the stage for closing arguments scheduled for next week. Judge Engoron could issue his ruling by the end of the month. The judge has already rejected several arguments from Trump’s legal team, including challenges to the statute of limitations and disgorgement, affirming their legal validity.
The lawsuit, which accuses Trump and his company of deceiving banks and insurers, alleges that Trump provided inflated values for assets such as golf courses and hotels. The trial has captivated public attention, with Trump using social media and rallies to protest his innocence, framing the legal proceedings as a political witch-hunt.
As both sides prepare for closing arguments, the outcome of this high-profile case remains uncertain, leaving the legal fate of the former president hanging in the balance.