A New York Appeals Court judge has denied former President Trump’s request to delay payment of the $464 million owed to the state after Attorney General Letitia James’ lawsuit.
However, the judge has ruled that Trump may continue running his business during the appeals process, with the condition that he posts a bond for the full amount of the judgment and an independent director of compliance is appointed.
This decision comes after New York Judge Arthur Engoron found Trump and his family liable for “persistent and repeated fraud” in a civil fraud case brought by James. The lawsuit alleges that Trump inflated his assets and committed fraud through various means, including falsifying business records and issuing false financial statements. The trial, which began in October and lasted for months, was contentious with Engoron placing Trump under a partial gag order to prevent him from criticizing court staff.
In addition to the $464 million in damages, Engoron also barred Trump’s sons, Donald Trump Jr. and Eric Trump, from serving as officers or directors of any New York corporation for two years. Former Trump Organization employees, Allen Weisselberg and Jeffrey McConney, were also barred from serving in financial roles for three years.
According to the suit, James had sought $370 million in damages, plus 9% interest and any awarded funds would go to the New York State Treasury unless directed elsewhere by the state comptroller.
Throughout the trial, Trump repeatedly dismissed the case as a “witch hunt” and accused James and Engoron of serving as political operatives for Democrats. His legal team also criticized the lack of a jury trial, which they claimed was not an option.
None of the defendants have admitted to any wrongdoing, with Trump maintaining that his financial statements were “perfect” and his assets had been undervalued. His legal team argued that his financial statements had disclaimers and that the banks involved were aware and conducting their own assessments.
Trump’s defense also brought in expert witnesses, including New York University accounting professor Eli Bartov, who testified that he found no evidence of accounting fraud in Trump’s financial statements. Bartov suggested that any discrepancies were simply errors and that overall, the financial statements were not materially misstated.
Despite Trump’s protests and his insistence on the accuracy of his financial statements, Engoron’s ruling found that he and other defendants were liable for a range of fraudulent activities, including conspiracy to falsify financial statements and insurance fraud. The judge also barred Trump, his family, and former employees from serving in certain roles in New York-based corporations for a set period.
Trump and his legal team are appealing the ruling, with a deadline of March 18 to submit their replies. A full hearing before the Appeals Court is scheduled for a later date.
