Donald Trump fined $354.9m after judge finds he inflated wealth to secure loans
Former US president Donald Trump has been fined $354.9m (£281.6m) after a civil fraud trial in New York.
The judge also banned Trump from running businesses in New York for three years. His sons, Eric and Donald Jr, received similar bans for two years.
Trump and the Trump Organisation were also banned from applying for loans from any New York financial institution for three years.
Alina Habba, his lawyer, said after the hearing that the ruling was a “manifest injustice”.
She said in a statement: “This verdict is a manifest injustice – plain and simple. It is the culmination of a multi-year, politically fuelled witch hunt that was designed to ‘take down Donald Trump,’ before Letitia James ever stepped foot into the Attorney General’s office.”
Judge Arthur Engoron had already ruled in an earlier judgement that the former president inflated his wealth on financial statements given to banks, insurers and other institutions to make deals and secure loans.
New York Attorney General Letitia James sought $370m (£294m) and a ban on Trump and other defendants from doing business in the state in the civil fraud case.
Such a huge penalty could now leave Trump’s real estate empire in tatters – an image that helped lead Trump to fame and the White House in 2016.
Trump’s legal team said the testimony during the trial “proved there was no wrongdoing, no crime, and no victim” and added an appeal would be launched.
Ms Habba added: “Given the grave stakes, we trust that the Appellate Division will overturn this egregious verdict and end this relentless persecution against my clients.
“Let me make one thing perfectly clear: this is not just about Donald Trump – if this decision stands, it will serve as a signal to every single American that New York is no longer open for business.”
Ms James’ office estimated Trump exaggerated his wealth by as much as $3.6bn.
State lawyers claimed Trump used the inflated numbers to get lower insurance premiums and favourable loan terms, saving at least $168m on interest alone.
During the trial, Trump launched a six-minute diatribe from the witness stand and was ordered not to disparage court staff – but defied the judge and was fined $15,000 (£11,800) for twice violating the order.
The Republican presidential front-runner testified in November that his financial statements actually understated his net worth and that banks did their own research and were happy with his business.
During closing arguments in January this year, he claimed the case was a “fraud on me”.
Before the trial, Judge Engoron ruled on James’ main claim, finding that Trump’s financial statements were fraudulent.
As punishment, the judge ordered some of his companies should be removed from his control and dissolved, but due to an appeal, another court has put that on hold.
Because it is a civil case, rather than criminal, there was no threat of Trump being jailed.
However, four of the investigations into the former president are on criminal grounds.