In a civil fraud prosecution, New York Attorney General Letitia James is seeking more than $370 million from former President Donald Trump and his co-defendants. James contends that the financial penalties are justified on the grounds of illicitly obtained profits, as detailed in a document submitted to the court on Friday.
The attorney general bases his argument on the deduction that Trump and his associates prepared and affixed Trump’s Statements of Financial Condition (SFCs) with the intent to defraud. In a prior ruling, Judge Arthur Engoron determined that both Trump and the Trump Organization were involved in fraudulent activities during the construction of his real estate empire. According to the ruling, they misled banks, insurers, and other entities through the practice of overvaluing assets and inflating net worth on transactional documents and financing applications.
Trump and his family have maintained a steadfast denial of any misconduct, asserting that the value of his assets was in fact underestimated. During his deposition, Trump voiced his disapproval of Judge Engoron’s decision, asserting that the judge unknowingly labeled him a charlatan.
Recently, the First Department of the New York State Appellate Division denied Trump’s challenge to the prohibition orders issued by Engoron. The civil trial by non-jury is a consequence of James’ legal action against Trump and his state-based enterprises.
In response to the verdict, Engoron issued a partial restraining order in an effort to deter verbal assaults against court personnel, specifically in light of Trump’s social media criticism of a judge’s office employee. Personal attacks against judicial personnel are unacceptable and will not be tolerated, Engoron emphasized.
The protracted legal dispute has substantial financial ramifications for Trump and his co-defendants in the civil fraud trial.