Judge Engoron Separates Punishments for Donald Trump's Kids in Ruling

Former President Donald Trump and his adult sons were handed separate punishments after being found liable for business fraud in civil court.

New York State Supreme Court Justice Arthur Engoron ordered the former president and his companies to pay over $355 million on Friday, while his sons Donald Trump Jr. and Eric Trump were ordered to pay over $4 million each.

The ex-president was also banned from doing business in New York State for a period of three years. His sons, who serve as vice presidents of the Trump Organization, were each given a two-year ban.

The Context

New York Attorney General Letitia James sued Trump, the Trump Organization and three of the former president's adult children in September 2022 over allegations that they fraudulently manipulated the value of assets on financial states. Daughter Ivanka Trump was dropped from the case last year due to the statute of limitations.

James requested that Trump pay $370 and be banned for life from doing business in New York. Engoron ruled that the former president was liable for some fraud claims in a summary judgment last September. He found Trump liable for additional claims and imposed penalties on Friday.

What We Know

Engoron ordered Trump and his companies to pay a total of $354,868,768 on Friday. His sons were each hit with penalties of $4,013,024, while former Trump Organization Chief Financial Officer Allen Weisselberg was ordered to pay $1 million.

Weisselberg and former Trump Organization executive Jeffrey McConney were permanently banned from "serving in the financial control function of any New York corporation or similar business entity registered and/or licensed in New York State."

Trump, Weisselberg and McConney were banned from "serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years," with Eric Trump and Donald Trump Jr. given the same penalty for two years.

Engoron did not order Trump's New York companies to be permanently dissolved, reversing an earlier ruling that set the stage for dissolution.

Views

James called the verdict "a massive victory" in a series of posts to X, formerly Twitter, saying that Trump had been punished for "engaging in years of incredible financial fraud to enrich himself."

"For years, Donald Trump engaged in massive fraud to unjustly enrich himself, his family, and his organization," wrote James. "He may have authored 'The Art of the Deal,' but he perfected the art of the steal. Now, he is finally facing the consequences of his illegal actions."

"Today, justice has been served," she added. "This is a major win for everyone who believes that we must all play by the same rules. No matter how big, how rich, or how powerful you are, no one is above the law. Not even Donald Trump."

Donald Trump Jr. responded to the verdict in a post to X that argued the lawsuit was about "political beliefs" rather than "the facts of the case."

"We've reached the point where your political beliefs combined with what venue your case is heard are the primary determinants of the outcome; not the facts of the case!" Trump Jr. wrote. "It's truly sad what's happened to our country and I hope others see it before it's too late to correct course!"

In response to Newsweek's request for comment, a spokesperson for The Trump Organization called the verdict "a gross miscarriage of justice."

"Every member of the New York business community, no matter the industry, should be gravely concerned with this gross overreach and brazen attempt by the Attorney General to exert limitless power where no private or public harm has been established," the spokesperson said.

"If allowed to stand, this ruling will only further expedite the continuing exodus of companies from New York," they added.

Trump lawyer Alina Habba said in a statement emailed to Newsweek that the verdict was "a manifest injustice - plain and simple," calling it "the culmination of a multi-year, politically fueled witch hunt that was designed to "take down Donald Trump."

"Countless hours of testimony proved that there was no wrongdoing, no crime, and no victim," said Habba. "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."

What's Next

Trump, who has repeatedly denied any wrongdoing and claims that all of his ongoing legal troubles are the result of politically motivated "election interference," is expected to appeal Engoron's ruling.

Habba said in her statement on Friday that she believes "that the Appellate Division will overturn this egregious verdict and end this relentless persecution against my clients," given the "grave stakes" of the case.

The former president is facing several other civil lawsuits, having already been ordered to pay former Elle columnist E. Jean Carroll more than $88 million after being found liable for defamation and sexual assault in two cases. He is also facing 91 felony counts across four separate criminal indictments.

Update 02/16/24 4:35 p.m. ET: This article was updated with additional information.