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Donald Trump Faces Significant Legal Setback
In a crucial legal setback, a New York Court ruled on Friday that Donald Trump must pay $354.9 million for fraudulently inflating his net worth and misleading lenders. This ruling piles another hefty legal blow on Trump's real estate empire that is already trembling under numerous lawsuits.
A Three-Year Ban and A New Oversight by Justice Arthur Engoron
Justice Arthur Engoron, in addition to the hefty penalty, barred Trump from taking any officer or director role in any New York corporation for three years. The justice replaced his previous September verdict calling for the "dissolution" of companies that form part of Trump's real estate empire. He justified this change by stating the appointment of an impartial overseer and compliance director would now monitor Trump's businesses.
Allegations Against Trump
The lawsuit, initiated by New York Attorney General Letitia James, alleged that Trump and his family businesses inflated his net worth as much as $3.6 billion annually over ten years to trick bankers, securing better loan terms. Trump and his adult sons, Don Jr. and Eric Trump, were defendants in this case; they have been ordered to pay $4 million each by the judge.
Trump's Response to the Ruling
Trump's lawyer Alina Habba dismissed the ruling as a clear miscarriage of justice resulting from a politically inspired witch hunt against Trump. Habba confirmed plans to appeal and suggested the decision sent a worrying message to all Americans: that New York was no longer welcoming towards businesses.
The Ongoing Legal Challenges
Trump is currently leading the race for the Republican nomination despite an array of other legal battles. Trump remains indicted in four criminal cases and recently caused an uproar with his fiery responses during the courtroom proceedings. In addition to potential implications for his political aspirations, the civil fraud case could deliver a severe blow to his already flagging real estate empire.
