Judge Engoron Issues $454 Million Fraud Judgment Against Trump, Bans NY Business Operations

Manhattan Supreme Court Judge Arthur Engoron issued a devastating 92-page ruling ordering Donald Trump to pay $354.9 million in disgorgement plus $98.6 million in prejudgment interest (totaling approximately $454 million), and barred Trump from serving as an officer or director of any New York corporation for three years. The judgment represented one of the largest financial penalties ever imposed in a New York civil fraud case and struck directly at Trump’s business empire and cultivated identity as a successful real estate mogul. Engoron found that Trump’s financial statements between 2014 and 2021 overvalued his assets by between $812 million and $2.2 billion, and that the frauds “leap off the page and shock the conscience.” The ruling concluded a three-month trial that exposed decades of systematic deception by Trump and the Trump Organization, validating Attorney General Letitia James’s allegations that Trump had inflated property values to obtain favorable loans while deflating them for tax purposes.

Judge Engoron’s ruling included scathing language condemning Trump’s conduct and complete lack of remorse. He wrote that the defendants showed a “complete lack of contrition and remorse” that “borders on pathological,” noting they “failed to accept responsibility or to impose internal controls to prevent future recurrences” despite having “submitted blatantly false financial data” to “borrow more and at lower rates.” The judge rejected Trump’s defenses that banks conducted their own due diligence and that disclaimers on financial statements absolved him of responsibility, finding Trump personally liable for persistent, intentional fraud. Trump’s sons Donald Jr. and Eric were each fined over $4 million and barred from serving as officers or directors of New York corporations for two years. Allen Weisselberg and Jeffrey McConney were permanently banned from controlling the finances of any New York business, with the court noting Weisselberg had committed perjury during his 2020 deposition about the Trump Tower triplex size fraud.

Scope of Fraud Documented

The judgment detailed specific fraudulent valuations across Trump’s portfolio that established a pattern of systematic deception. Mar-a-Lago was valued at $739 million despite deed restrictions limiting it to club use and an actual value around $75 million—a $664 million overvaluation. Trump Tower’s penthouse was valued based on claiming it was 30,000 square feet when it was actually 10,996 square feet, tripling its supposed value. Golf courses were valued using inflated projections that bore no relationship to actual financial performance. Trump even inflated the value of cash and cash equivalents on hand, overstating liquid assets available to satisfy obligations. The court found these weren’t isolated errors but represented a calculated, multi-year scheme involving Trump, his sons, and senior executives to deceive lenders and insurers.

Attorney General Letitia James declared victory, stating: “The scale and scope of Donald Trump’s fraud is staggering. Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud.” The judgment required Trump to pay interest accruing at 9% annually, ensuring the total would continue growing until paid. While Engoron vacated his earlier order to cancel Trump Organization business certificates—pulling back from a “corporate death penalty”—the three-year ban on Trump conducting business in New York and restrictions on obtaining loans from New York financial institutions severely constrained Trump’s ability to operate his core business. The ruling also appointed an independent monitor to oversee Trump Organization financial practices for at least three years, ensuring continued oversight of the company’s operations.

Significance

This judgment represented the most significant legal accountability Trump had faced for his business practices, transforming allegations of fraud into a court-established fact with massive financial consequences. The $454 million penalty exceeded the $250 million James initially sought, reflecting the severity of the fraud and Trump’s complete lack of remorse during trial. The ruling came as Trump was campaigning for the 2024 Republican presidential nomination, creating an unprecedented situation where the likely nominee faced a half-billion-dollar judgment for proven fraud. Trump immediately vowed to appeal, calling the ruling a “witch hunt” and claiming political persecution, but Engoron’s detailed findings and extensive documentation made reversal difficult. The judgment established legal precedent that even high-profile defendants with expensive lawyers cannot escape accountability for systematic fraud when evidence is overwhelming. The business restrictions struck at Trump’s core identity—without the ability to control New York businesses or secure New York financing, Trump faced fundamental constraints on his business empire. The ruling vindicated James’s decision to pursue the case despite political pressure and demonstrated that state attorneys general could hold even former presidents accountable for financial crimes. Though a New York appeals court would later reduce the penalty in August 2025, the fraud findings remained intact, permanently establishing Trump as a court-proven fraudster who systematically deceived financial institutions for decades.