Trump ordered to pay $354m in New York fraud case

1. A New York judge has ordered Donald Trump to pay $354m (£280m) in a landmark fraud case
2. The ex-president has also been banned from doing business in New York for three years
3. His sons and co-defendants Donald Trump Jr and Eric Trump have been fined $4m (£3.17m) each and hit with two-year bans on doing business in New York
4. But the judge stopped short of cancelling Trump's business licences, which some experts said could have effectively ended his business empire.
5. Trump and his two adult sons were found to have massively inflated the value of their properties by hundreds of millions of dollars to get better loans
6. Trump's team say they will appeal the ruling, which the Trump Organization called a "gross miscarriage of justice"

Trump and his co-defendants ordered to pay more than $450m

Brandon Livesay

Reporting from New York

Letitia James says 'no one above law' after Trump ruling

Donald Trump has been ordered to pay more than $350m, and with interest he and his co-defendants will need to cough up more than $450m.

The bombshell ruling from Justice Arthur Engoron comes after a civil trial in New York that was filled with drama.

Trump and his lawyers repeatedly clashed with the judge both inside and outside the courtroom.

And the saga has ended with just as much drama, with the judge deciding to hand out a stiff financial penalty and ban Trump from serving as company director or from taking out loans from New York banks for the next three years.

The ruling stems from fraudulent business practices used by the Trump Organization to secure favourable loans.

Here's our full wrap of the fraud case. And if you are wondering if Trump can pay those penalties, you can read this article.

Our writers today were Kayla Epstein, Madeline Halpert, Sam Cabral and Nadine Yousif. And this page was edited by Francesca Gillett and myself.

Thanks for following along with us.

Recapping today's ruling

Here is a quick recap of Justice Arthur Engoron's 92-page written judgment, and how Donald Trump has reacted:

• Donald Trump and his Trump Organization are ordered to pay $354.9m (£281m)
• Donald Trump Jr and Eric Trump, his sons, are each ordered to pay $4m, while former COO Allen Weisselberg is liable for $1m
• The co-defendants will also have to pay about $100m in interest, which brings the total figure owed to $463.9m
• Trump is banned from doing business in the state of New York for three years, while his two sons are barred for two
• Trump, as well as his company and its affiliates, cannot apply for loans in New York for three years
• Barbara Jones' role as independent monitor of the company is extended for three more years
• The company avoided the worst possible penalty - a cancellation of its business licences

• Trump said he will appeal the ruling, railing against the decision as a "witch hunt"
• New York Attorney General Letitia James, who brought the civil fraud case against Trump, hailed Friday's ruling as "a tremendous victory" for the state and the country, and proof that "no one is above the law"

Trump Org CFO 'intentionally falsified hundreds of records'

More now from the judge's ruling, in which he takes aim at Allen Weisselberg, the former chief financial officer of the Trump Organization.

“There is overwhelming evidence that Allen Weisselberg intentionally falsified hundreds of business records during his tenure," Justice Engoron writes.

"Weisselberg understood that his assignment from Donald Trump was to have his reported assets increase every year irrespective of their actual values."

Among Weisselberg's offences, the judge claims, were concealing the square footage of the triplex at Trump Tower to inflate its value by $200 million, misrepresenting real estate valuations to insurance agents and arranging for the deficit-riddled property at 40 Wall Street to be shown as having a positive net operating income.

Justice Engoron adds: "The evidence is overwhelming that Allen Weisselberg and [former controller] Jeffrey McConney cannot be entrusted with controlling the finances of any business."

'Handcuffs instead of a straitjacket'

Kayla Epstein

Reporting from New York

Even though this ruling is very detrimental to Trump, he got a slight reprieve with the appointment of an independent monitor.

Justice Engoron could have also appointed a receiver to oversee Trump's businesses, which would have had even more control over their operations, Steve Cohen of the New York Law School explains.

An independent monitor, while still a serious oversight, is a slightly less severe option.

"Instead of being placed in a straitjacket, in a locked room, under guard, they're being put in handcuffs, in a locked room, under guard," Cohen says.

Still, the independent monitor will have broad authority to keep Trump's businesses in line.

The monitor, Barbara Jones, will get to appoint an independent director of compliance to work under her - and the Trump Organization will have to pay them.

"By installing this additional layer, this compliance director, it's a person who’s literally sitting at Trump Organization, and nothing can go out, nothing can be issued without that person approving. It’s a big deal and it’s certainly should have the impact of stopping any misstatements on financial records," says Diana Florence, a former federal prosecutor.

Trump and co-defendants will also have to pay about $100m in interest

Former US president Donald Trump and his organisation were ordered to pay a total of $354.9m for inflating the value of his properties.

But it will cost him a lot more than that.

Trump, his sons Donald Jr and Eric, as well as his former executives, will all have to pay additional interest on those penalties. The judge says the interest will go back across several years and it will be owed at a rate of 9%, "except where otherwise provided by statute".

Attorney General Letitia James wrote on X (formerly Twitter) that with the interest included on top of the $354.9m, "Donald Trump, Donald Trump, Jr, Eric Trump, and his former executives must pay $463.9m for their staggering financial fraud".

Ex-CFO tried to inflate Trump's triplex with 'ex-president premium'

The ruling from Justice Engoron has many interesting details about the lengths that former president Donald Trump and his associates took to try to inflate his real estate assets.

In one instance, Allen Weisselberg, the former chief finance officer of the Trump Organization, tried to add a 35% "ex-president premium" to inflate the value of a Triplex at Trump Tower, where the former president had lived for decades.

The idea, however, was ultimately scrapped.

The attempt was part of a lengthy dispute on just how big and valuable the Triplex is.

Records of the property dating back to 1994 show that it was 10,996 square feet. But former Trump Organization employees, including Weisselberg, began valuing it as if it were 30,000 square feet starting in 2012.

This claim was only corrected after a journalist from Forbes began inquiring about the true size of the property in 2017, according to court documents.

Elise Stefanik: 'Latest example of weaponised justice system'

Getty Images

Elise Stefanik is on the shortlist to be Trump's vice-presidential pick

New York Congresswoman Elise Stefanik, one of Donald Trump's fiercest defenders in Washington, has called today's ruling "the latest example of the justice system being weaponised by extreme Democrats to try and stop President Trump from winning back the White House".

Stefanik has emerged in recent weeks as being on Trump's shortlist to be his vice-president if he wins the Republican nomination.

Earlier in the trial, she filed a complaint in New York seeking to disbar Attorney General James, who she accused on Friday of "unethical behaviour and political bias".

Donald Trump says he will appeal

The former president has just spoken to the media. Similar to his posts on social media all afternoon, he calls this ruling a "witch hunt" and says he will appeal.

He says the banks "love" him, and they "testified beautifully".

Trump also says the judge doesn't know how much Mar-a-Lago is worth.

He says if his appeal is not successful, "New York State is gone... because of this (ruling), people are going to move out (of the state) at a much faster rate".

New York governor: 'Nobody is above the law'

New York Governor Kathy Hochul was just asked at a news conference for her reaction to the ruling in the Trump fraud case.

Hochul told the gathered press that she had just gotten off the phone with Attorney General Letitia James and congratulated her fellow Democrat for winning the case.

"This sends a strong message that... in the state of New York, businesses and businesspeople who commit fraud and who hide their assets will be caught and prosecuted," she said.

"Whether you're a past president - a forever past president - or an ordinary person, nobody is above the law."

Rule of law also applies to former presidents - Letitia James

Letitia James says 'no one above law' after Trump ruling

Letitia James concludes her remarks by underscoring that the scale of Donald Trump's fraud is "staggering", and so is his ego and his belief that the "rules do not apply to him".

"We are holding him accountable for lying, cheating and a lack of contrition and for flouting the rules that all of us play by," she says.

"There cannot be different rules for different people in this country, and former presidents are no exception."

Trump's crimes are not 'victimless', James says

Trump's legal team has argued repeatedly that there were no victims of his fraud.

But today, James is disputing that.

"White collar financial fraud is not a victimless crime," she says.

She says hardworking Americans who do play by the rules are the ones who are hurt by white collar crimes.

Trump 'perfected the art of the steal' - James

James is now explaining what Trump was found liable of - falsely inflating his networth by billions of dollars.

"Donald Trump may have authored the art of the deal, but he perfected the art of the steal," she says.

Donald Trump committed 'tremendous' fraud - Letitia James

New York's Attorney General Letitia James is now addressing reporters at a news conference.

"Today justice has been served," James says, repeating her earlier statements.

"Today we proved that no one is above the law. No matter how rich, powerful or politically connected you are."

She adds that former US president Donald Trump committed "tremendous" fraud to "unjustly enrich himself, his family and to cheat the system".

"We have a responsibility to protect the integrity of the market place," James says.

How much New York means to Trump

Brandon Livesay

Reporting from New York

Getty Images

Donald Trump getting into a limo outside Trump Tower

Donald Trump only seems to come to New York City when he has a court date, but it used to be very different.

His father was a wealthy Bronx real estate developer, and Trump used that platform to build his own billion-dollar empire.

His first true conquest in the city was Trump Tower, a hulking black building with his name in gold letters above the entrance. Trump lived in the penthouse of the Fifth Avenue tower for decades. It was the king piece in his own personal chess board.

Trump burst into mainstream popular culture in the city, filming his reality TV show The Apprentice inside of Trump Tower. And with that newfound fame, he launched a political career that put him in the White House

When he won the 2016 election, Trump Tower became the de facto presidential transition office overnight.

But the relationship between New York and Trump quickly soured. His politics did not match with many of the liberal elites he once rubbed shoulders with. He no longer lives in Trump Tower, it's just a place to stay when he has to front court.

Indeed on Thursday, Trump was in a New York courtroom for his hush money case. He spoke to media, railing against the city for what he calls rampant "migrant crime".

And while Trump and New York may not be as closely tied as they once were, being hit with this ruling in the city where the former president made his name is a brutal blow to his legacy.

'Frauds found here leap off the page and shock the conscience' - Judge

Justice Engoron has strong words when it comes to what he says is a "great red herring" of this case.

"United States Supreme Court Justice Potter Stewart famously, or infamously, declared that he could not define pornography, but that he knew it when he saw it," the judge wrote.

"The frauds found here leap off the page and shock the conscience."

The red herring he is speaking of is the difference between "material" and "immaterial", when it comes to errors in financial documents.

"This Court confidently declares that any number that is at least 10% off could be deemed 'material,' and any number that is at least 50% off would likely be deemed material," he writes.

"These numbers are probably conservative given that here, such deviations from truth represent hundreds of millions of dollars, and in the case of Mar-a-Lago, possibly a billion dollars or more."

The judge says that "appraising is an art as well as a science. However, the science part cannot be fraudulent".

"When two appraisals rely on starkly different assumptions, that is not evidence of a difference of opinion, that is evidence of deceit," he said.

'No one is above the law' - NY Attorney General Letitia James

Getty Images

New York Attorney General Letitia James, who brought the civil fraud trial against former president Donald Trump, called today's ruling "a tremendous victory" for the state and the country.

"Today, justice has been served," James said in a statement.

"For years, Donald Trump engaged in massive fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization," she said,

James said that Trump's actions came "at the expense of honest and hardworking people".

"Now, Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud," she said.

"Because no matter how big, rich, or powerful you think you are, no one is above the law."

Recapping the ruling

If you're just joining us, let's break down the key points from Justice Arthur Engoron's 92-page written judgment:

• Donald Trump and his Trump Organization are ordered to pay $354.9m (£281m)
• Donald Trump Jr and Eric Trump, his sons, are each ordered to pay $4m, while former COO Allen Weisselberg is liable for $1m
• Trump is banned from doing business in the state of New York for three years, while his two sons are barred for two
• Trump, as well as his company and its affiliates, cannot apply for loans in New York for three years
• Barbara Jones' role as independent monitor of the company is extended for three more years
• The company avoided the worst possible penalty - a cancellation of its business licences
• The judge wrote that, while loans were paid on time, his ruling was made in order "to protect the integrity of the financial marketplace"
• He said the defendants "failed to accept responsibility" and are "incapable of admitting the error of their ways"

• Witnesses called by the Trump legal team "simply denied reality", the judge added
• By contrast, Judge Engoron found the prosecution's witness, Michael Cohen, to be credible. Trump's former personal attorney and fixer "told the truth" on the stand, he wrote
• Trump and his spokespeople said they will appeal the ruling, railing against the decision as a "total sham" and "a manifest injustice"

Judge punished Trump Organization for lack of remorse, says legal expert

Madeline Halpert

Reporting from New York

Justice Engoron took pains to explain his reasoning behind the penalties for the Trump Organization.

One of those reasons was apparently the lack of remorse from Trump Organization executives and family members.

In his ruling, Engoron has a whole section titled "refusal to admit error".

He starts by saying this: "The English poet Alexander Pope (1688-1744) first declared, 'To err is human, to forgive is divine.' Defendants apparently are of a different mind".

"Defendants are incapable of admitting the error of their ways," he writes later on.

Engoron issued a ruling that was aimed at sending a message of "enough is enough" to anyone who engages in fraud with no remorse, says former federal prosecutor Diana Florence.

Mary Trump: 'End of my grandfather's legacy'

Getty Images

Mary Trump is the estranged niece of the former president

Mary Trump, the former president's estranged niece, has lauded Justice Engoron's ruling as "the end of my grandfather’s legacy".

"It has taken over half a century but Donald's ability to commit fraud with impunity has come to an end—at least in New York—and trust me, that matters to him," she wrote on X.

"Today is an emotional day, but one thing is certain: the Engoron decision is absolutely devastating for Donald."

In a series of tweets, she says Trump got what he paid for by picking Alina Habba - who she calls "the human embodiment of pounding the table" - as his lead lawyer on the case.

"Can we please send this money straight to Ukraine?" she suggests. "Poetic justice all the way around."

Trump takes to social media, calls ruling a 'Total SHAM'

Donald Trump is reacting to the judge's ruling with a flurry of posts on his Truth Social platform.

"This 'decision' is a Complete and Total SHAM. There were No Victims, No Damages, No Complaints," he writes. "ELECTION INTERFERENCE. WITCH HUNT."

He rails against Justice Engoron as "partisan, deluded, biased" and "Crooked".

He also slams prosecutor Letitia James, the New York attorney general, as "totally Corrupt" and "Racist".

"I helped New York City during its worst of times, and now, while it is overrun with Violent Biden Migrant Crime, the Radicals are doing all they can to kick me out..."

Trump predicts the decision will be reversed on appeal.