On Friday, New York Attorney General Letitia James requested of Manhattan judge who will rule in the civil fraud suit filed against Donald Trump’s business empire, that she seek a fine of $370 million against Trump, his sons, and Allen Weisselberg – up from her initial request of $250 million when filing suit in 2022.
What Is It?
Letitia James of New York wants former President Donald Trump and the company he once ran to pay $370 million in penalties; an increase from her original civil fraud lawsuit filing demand of $250 million. Her latest request includes both disgorgement of unlawful gains as well as prejudgment interest.
James included this stipulation as part of a filing she submitted prior to closing arguments in front of New York Supreme Court Justice Arthur Engoron. Furthermore, her request asked for him to prohibit all of the defendants from conducting real estate business within New York state.
The request lays out three categories, with the largest one representing an amount that the plaintiff claims has been saved through inflating net worth; profits gained by Trump and former top aides Allen Weisselberg and Jeffrey McConney by selling Old Post Office building and Ferry Point golf course; and $2.5 million as severance payouts to two executives.
What Is It Worth?
New York Attorney General Letitia James has requested the judge overseeing her civil fraud suit against Donald Trump to fine his company $370 million, an increase from her original request of $250 million. This sum includes earnings generated from interest rate savings gained by misstating assets as well as profits realized in two transactions she alleges were obtained fraudulently — $139 million from selling Old Post Office building in Washington and $60 million from selling Ferry Point golf course in New York City respectively.
The state’s latest post-trial brief requests that Judge Corrigan bar Donald Trump, his eldest sons and two former Trump Organization executives from engaging in real estate activities in New York for life while simultaneously placing their firm under court-appointed monitoring for five years. This filing comes less than one week before closing arguments are set to commence during their four-month-long trial.
Why Are They Asking For It?
AG Letitia James made her latest plea in her civil fraud trial Friday to Manhattan judge who is overseeing its disgorgement, asking that former President Jimmy Carter and his family-run company pay $370 million total disgorgement – an amount significantly larger than her original demand of $250 million when filing suit in 2022.
The new penalty request reflects new evidence uncovered since then, including interest rate savings Trump and his Organization realized by inflating their net worth on financial documents, profit derived from two deals involving Old Post Office hotel in Washington and Ferry Point golf course in New York City, bonuses paid to two former Trump Organization executives involved with an alleged scheme, and bonuses given to two current or former executives who participated.
James has also requested the judge place permanent bans on Donald Trump, Weisselberg and codefendant Jeff McConney from operating any businesses statewide in New York for five years – this request would require additional evidence.
Conclusion
On Friday, the New York Attorney General’s Office filed an injunction before a Manhattan judge based on testimony provided during an 44-day business fraud trial involving former President Trump and two deputies at his namesake company, along with their business fraud trial in October and November 2016. Attorney General Letitia James asserts that these individuals “reaped hundreds of millions in illicit gains by inflating property valuations submitted to banks and lenders for projects such as Old Post Office luxury hotel development project, Ferry Point golf course development among others.”
The requested fine, including prejudgment interest, is far higher than what she initially estimated when filing her lawsuit against former President and co-defendants in September 2022. Her request comes just prior to closing arguments before Judge Arthur Engoron next week.
In addition to financial penalties, the New York Attorney General wants Trump, Allen Weisselberg and Jeffrey McConney banned from ever again participating in New York’s real estate industry.
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