Trump ordered to pay $355 million in civil fraud trial

What are your thoughts on this? The court using tax valuations to claim Trump committed fraud was clearly absurd (in no world is Mar-a-Lago worth $18MM when tiny plots of land sell for $40MM in Palm Beach), and Deutsche Bank said it doesn't matter what finances the Trump Organization reports because it conducts its own underwriting process for every loan.

Highlights are listed below (from CNN):

  • The biggest fines yet against Trump: Engoron found that the defendants’ fraud saved them about $168 million in interest, fining Trump and his companies that amount. He also ruled that Trump and his companies were liable for $126 million in ill-gotten profits from the sale of the Old Post Office in Washington, DC, and that Trump and his companies were liable for $60 million in profits from the sale of Ferry Point in the Bronx. Engoron also wrote that Trump would be required for interest on those payments.
  • The judge gets the last word: Trump repeatedly attacked Engoron and the case throughout the 11-week trial on social media, outside the courtroom – and even to the judge’s face while he testified. On Friday, Engoron got the last word, painting Trump as a “pathological” fraudster who would not stop unless forced. The judge acknowledged that the sins Trump committed — which his lawyers frequently argued had no victim because banks were repaid and often eager to do business with Trump’s company — were not as serious as some crimes. But he faulted Trump and his co-defendants for a complete lack of contrition.
  • No corporate death penalty: The judge banned Trump from serving as an officer or director of a New York corporation for three years, but did not issue the so-called corporate death penalty. Engoron pulled back from a decision he issued a summary judgment in September dissolving Trump’s business certificates in finding that Trump and his co-defendants were liable for persistent and repeated fraud. But, the independent monitor installed last fall will stay in place for at least three years and an independent director of compliance should be put in place at the Trump Org. at the company’s expense, the ruling said.
  • Judge says Cohen told the truth: Engoron recapped Michael Cohen’s theatrical trial testimony, acknowledging the credibility issues with Trump’s former lawyer and fixer. But ultimately, Engoron said, he believed Cohen.
  • Trump’s adult sons banned for 2 years: Trump’s eldest sons – who’ve essentially run the Trump Organization since 2017 – are barred from serving as executives in New York for two years, according to Engoron’s order. The Trumps will have to navigate the two-year penalty as they sort out the future of the family-run real estate company.
 
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If you read the actual report written by the judge, it is clear this was not based on one appraisers lowball valuation. among other things, trump claimed:

  • his nyc penthouse was 3x its actual sq footage
  • Mar-a-lago was a single family household despite explicitly being a social club.
  • claimed cash on Vornado’s BS as his own despite owning less than 50% interest in the entity
  • claimed a property operating at a loss generated 60m profit
  • Used non-gaap accounting on certified gaap filings to remove management fees from operating income and inflate profitability 

If you want to defend trump, I don’t care, but be honest about what you’re defending.

 

If you lie for financial gain it is called fraud, which is punishable civilly via a monetary judgement. The civil penalties are probably not going to move the needle politically or financially for him.  He will just ask dumb ass donors for more money.  There is far more risk for him in a criminal prosecution, which is on the way.

His speech was absurd and embarrassing.  Amongst the very stupid things he said was that his actions were okay because he paid back loans.  In other words, it is okay to commit financial fraud, if it does not directly hurt anyone.

 
johnny-mnemonic

Seems punitive / excessive

Yeah I don’t think these topics should be shadowbanned either. This post isn’t bumping anymore.

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

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