‘Court now finds defendants liable … and limits defendants’ right to conduct business in New York for a few years,’ the judge wrote.
New York Supreme Court Justice Arthur Engoron issued an order on Feb. 16, including multimillion-dollar penalties, but modified his previous order to cancel Trump Organization business certificates in a move widely criticized as a “corporate death blow.”
“This Court finds that defendants are likely to continue their fraudulent ways unless the Court grants significant injunctive relief.”
New York Attorney General Letitia James brought the case against President Donald Trump and the Trump Organization in September 2022, and the trial began on Oct. 2, 2023.
The judge granted most of what the attorney general had asked for in injunctive relief, but in a major departure from the recommended relief did not permanently ban President Trump from doing business in New York.
Trump Organization executives are ordered to pay more than $360 million with backdated interest.
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Former Trump Organization executives Allen Weisselberg and Jeffrey McConney are permanently banned from doing business in New York.
“The evidence is overwhelming that Allen Weisselberg and Jeffrey McConney cannot be entrusted with controlling the finances of any business,” the judge ordered.
Mr. Weisselberg, Mr. McConney, and President Trump are banned from serving as an officer or director of any New York corporation or legal entity for three years. Eric Trump and Donald Trump Jr. cannot serve as such for two years.
President Trump and his companies cannot apply for loans from any financial institution chartered by or registered in New York for three years.
This would effectively bar President Trump from doing business in the state for three years.
Former judge Barbara Jones will continue to monitor Trump Organization for at least three years, and will send a proposal to the court in 30 days outlining what authority she needs to effectively serve as independent monitor.
Another independent director of compliance will be installed at Trump Organization, paid for by the defendants, to “ensure compliance with financial reporting obligations and to establish internal written accounting and financial reporting protocols.” Ms. Jones will make a list of recommended persons for the position within 30 days.
No Cancellation of Business Certificates, For Now
The judge vacated his September 2023 order to cancel the Trump Organization business certificates, and decided instead that this penalty could be applied later at the recommendation of the monitor or “based on substantial evidence.”
“Going forward there will be two-tiered oversight, an Independent Monitor and an Independent Director of Compliance, of the major activities that could lead to fraud, cancellation of the business licenses is no longer necessary,” the judge ordered.
“The restructuring and potential dissolution of any LLCs shall be subject to individual review by the Court appointed Independent Director of Compliance in consultation with Judge Jones.”
Disgorgement Breakdown
The attorney general had asked for about $370 million with 9 percent annual interest in disgorgement, or the difference in what the state argued the Trump Organization would have paid if its statements of financial condition (SFCs) from 2011 to 2021 were adjusted.
The judge granted this request. The figure breaks down to $168 million for several properties, with interest applied from March 2019; and $126 million for another smaller group of properties including the Old Post Office building in Washington, D.C., with interest applied from May 2022; the Donald J. Trump Revocable Trust and other umbrella organizations are jointly liable for $60 million with interest from June 2023; Eric Trump and Donald Trump Jr. are personally liable for $4 million with interest from May 2022; and Mr. Weisselberg is personally liable for $1 million with interest from January 2023.
Original News Source Link – Epoch Times
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