Trump must pay $354.9 million, barred from NY business for 3 years

(Reuters) — Donald Trump must pay $354.9 million in penalties for fraudulently overstating his net worth to dupe lenders, a New York judge ruled Friday, handing the former U.S. president another legal setback in a civil case that imperils his real estate empire.

Justice Arthur Engoron also banned Mr. Trump from serving as an officer or director of any New York corporation for three years.

Judge Engoron canceled his prior ruling from September ordering the “dissolution” of companies that control pillars of Mr. Trump’s real estate empire, saying on Friday that this was no longer necessary because he is appointing an independent monitor and compliance director to oversee Mr. Trump’s businesses.

In the ruling, Judge Engoron wrote that Mr. Trump and the other defendants in the case “are incapable of admitting the error of their ways.”

“Their complete lack of contrition and remorse borders on pathological,” Judge Engoron wrote. “Instead, they adopt a ‘See no evil, hear no evil, speak no evil’ posture that the evidence belies.”

The lawsuit brought by New York Attorney General Letitia James accused Mr. Trump and his family businesses of overstating his net worth by as much $3.6 billion a year over a decade to fool bankers into giving him better loan terms.

Mr. Trump’s lawyer Alina Habba said in a statement that the ruling was a “manifest injustice” and “culmination of a multi-year, politically fueled witch hunt” against him.

“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,” Ms. Habba said, adding that she plans to appeal.

Mr. Trump and his adult sons, Don Jr. and Eric, were defendants in the case. Don Jr. and Eric Trump were each ordered by the judge to pay $4 million.

Mr. Trump has denied wrongdoing and called the case a political vendetta by James, an elected Democrat.

During defiant and meandering trial testimony in November, Mr. Trump conceded that some of his property values were inaccurate but insisted banks were obligated to do their own due diligence.

Judge Engoron criticized Mr. Trump for his behavior during his trial testimony — and wrote that the testimony hurt his cause.

“Donald Trump rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial,” the judge wrote. “His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility.”

Mr. Trump could be required to deposit his portion of the full judgment plus interest during an appeal, which is standard practice in similar cases.

Mr. Trump could also post a smaller amount with collateral and interest by securing a type of loan called an appeal bond. But he may have trouble finding a willing lender after Judge  Engoron found he lied to banks about his wealth.

It is unclear how much access to cash Mr. Trump has, and estimates of his fortune vary, with Forbes pegging his net worth at $2.6 billion. Mr. Trump testified in an April deposition that he had roughly $400 million in cash.