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		<title>Potential Trump AG threatens to prosecute Letitia James</title>
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		<pubDate>Fri, 08 Nov 2024 08:05:45 +0000</pubDate>
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					<description><![CDATA[<p>Left: New York Attorney General Letitia James speaks during a press conference regarding former President Donald Trump and his family’s financial fraud case on September 21, 2022, in New York (YUKI IWAMURA/AFP via Getty Images). Right: Donald Trump speaks at a ‘Save America’ rally on October 22, 2022, in Robstown, Texas (Brandon Bell/Getty Images). A [&#8230;]</p>
<p>The post <a href="https://homesafetytechpros.com/potential-trump-ag-threatens-to-prosecute-letitia-james/">Potential Trump AG threatens to prosecute Letitia James</a> appeared first on <a href="https://homesafetytechpros.com">Home Safety Tech Pros</a>.</p>
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<p id="caption-attachment-350309" class="wp-caption-text">Left: New York Attorney General Letitia James speaks during a press conference regarding former President Donald Trump and his family’s financial fraud case on September 21, 2022, in New York (YUKI IWAMURA/AFP via Getty Images). Right: Donald Trump speaks at a ‘Save America’ rally on October 22, 2022, in Robstown, Texas (Brandon Bell/Getty Images).</p>
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<p>A conservative attorney rumored as a potential top cabinet appointee for president-elect Donald Trump issued a stark warning to New York Attorney General Letitia James on Thursday.</p>
<p>“Let me just say this to ‘Big Tish’ James, the New York attorney general: I dare you. I dare you to try to continue your lawfare against President Trump in his second term because listen here, sweetheart, we’re not messing around this time,” Mike Davis, the former chief counsel for nominations on the Senate Judiciary Committee, said.</p>
<p>The threat was then crystallized with a body-shaming insult about the Empire State’s top law enforcement official.</p>
<p>“We will put your fat a–– in prison for conspiracy against rights,” Davis said during an appearance on “<a href="https://x.com/bennyjohnson/status/1854615830358614487" target="_blank" rel="noopener">The Benny Show</a>,” the eponymous YouTube program hosted by conservative columnist Benny Johnson.</p>
<aside class="o-callout__recirculate o-callout"/>
<p>James, a Democrat, has been a constant and expensive thorn in Trump’s side during the interregnum-like Joe Biden presidency – but her interest in the 45th and 47th president goes back much further.</p>
<p>An underlying investigation by James’ office dates back to 2019 and is premised on sworn congressional testimony from Trump’s former friend and fixer Michael Cohen in 2019. <a href="https://lawandcrime.com/high-profile/aocs-grilling-of-michael-cohen-was-what-led-to-ny-ags-fraud-case-against-trump-businesses-eric-trump/" target="_blank" rel="noopener">Under questioning</a> by Rep. Alexandria Ocasio-Cortez, D-N.Y., Cohen claimed the Trump Organization inflated assets to insurance companies and that the company’s tax returns likely contained similar financial improprieties.</p>
<p>A <a href="https://ag.ny.gov/press-release/2022/attorney-general-james-sues-donald-trump-years-financial-fraud" target="_blank" rel="noopener">$250 million civil fraud lawsuit</a> was brought against Trump, his children, and the Trump Organization by James in <a href="https://lawandcrime.com/trump/letitia-james-files-massive-fraud-lawsuit-asking-judge-to-permanently-bar-trump-and-his-children-from-serving-as-officer-or-director-in-any-new-york-corporation/" target="_blank" rel="noopener">September 2022</a>.</p>
<p>Fast-forward a year or so.</p>
<p>In <a href="https://lawandcrime.com/trump/repeated-and-persistent-fraud-trump-inflated-his-net-worth-by-billions-of-dollars-for-over-10-years-in-order-to-bilk-banks-and-insurance-companies-ny-ag-says-in-new-filing/" target="_blank" rel="noopener">September 2023</a>, the former and forthcoming president, Donald Trump, Jr., Eric Trump, several of their top lieutenants, and various corporate organizations that comprise the Trump family business were found to have committed fraud by a Manhattan judge on a series of motions for summary judgment filed by James and her office. The court also saw fit to issue costly cancellations of numerous licenses that allowed the Trumps to do business in New York State. Additionally, several of Trump’s attorneys were personally sanctioned $7,500 each for making frivolous arguments orally and in motions.</p>
<p>A bench trial — a trial without a jury — on the extent of liability <a href="https://lawandcrime.com/high-profile/you-cant-listen-to-me-for-more-than-one-minute-trump-lashes-out-at-judge-at-close-of-civil-fraud-trial-in-new-york/" target="_blank" rel="noopener">was held</a> between October and December 2023. <a href="https://lawandcrime.com/high-profile/the-frauds-found-here-leap-off-the-page-and-shock-the-conscience-trump-owes-364-million-for-lying-about-business-valuations-will-be-temporarily-barred-from-doing-business-in-empire-state/" target="_blank" rel="noopener">In February</a>, New York Supreme Court Justice Arthur Engoron arrived at a penalty just shy of the $370 million the state had asked for <a href="https://lawandcrime.com/high-profile/necessary-and-appropriate-new-york-attorney-general-asks-judge-to-ban-trump-for-life-from-empire-state-real-estate-industry-and-make-him-pay-370-million-penalty-for-repeated-and-persistent-fra/" target="_blank" rel="noopener">in January</a>.</p>
<p>As the bills, substantial civil fines with crushing amounts of interest in this case, came due, Trump and his lawyers on one side <a href="https://lawandcrime.com/high-profile/the-assets-would-be-forever-gone-trump-and-his-attorneys-rage-over-completely-illogical-suggestions-by-ny-ags-office-on-how-to-satisfy-464-million-civil-fraud-judgment/" target="_blank" rel="noopener">battled it out</a> with James, her fellow lawyers, and Engoron on the other.</p>
<p>As the case wore on, <a href="https://lawandcrime.com/high-profile/we-will-ask-the-judge-to-seize-his-assets-ny-ag-says-if-trump-cant-pay-354m-fraud-fine-his-buildings-are-up-for-grabs/" target="_blank" rel="noopener">James threatened</a> to seize Trump’s assets; Trump said James <a href="https://lawandcrime.com/high-profile/trump-attorney-says-ny-ag-is-trying-to-collect-on-civil-fraud-verdict-without-notice/" target="_blank" rel="noopener">was violating the law</a> by trying to collect on the verdict by sidestepping procedure; Engoron <a href="https://lawandcrime.com/high-profile/you-have-failed-judge-overseeing-civil-fraud-case-quickly-shuts-down-trump-and-co-defendants-effort-to-pause-enforcement-of-364-million-penalty/" target="_blank" rel="noopener">rebuffed efforts</a> to slow the process down. Then, after Trump posted a bond to appeal the verdict, <a href="https://lawandcrime.com/high-profile/a-promise-that-is-hollow-ny-ag-asks-judge-to-reject-trumps-175-million-civil-fraud-bond-as-without-effect-and-force-him-to-get-a-replacement-within-days/" target="_blank" rel="noopener">James asked the court</a> to rule the bond was simply not good enough but <a href="https://lawandcrime.com/high-profile/not-the-only-evidence-of-justification-trump-lawyers-acknowledge-civil-fraud-bond-was-issued-without-certificate-of-qualification-but-say-ags-complaint-should-be-set-aside-anyway/" target="_blank" rel="noopener">Trump pushed back</a>, eventually catching a break this spring.</p>
<p><a href="https://lawandcrime.com/high-profile/no-victims-no-damages-and-no-financial-losses-trump-spends-nearly-5000-pages-asking-appeals-court-for-stay-in-civil-fraud-case-because-he-simply-does-not-have-the-cash/" target="_blank" rel="noopener">On appeal</a>, Trump and his namesake business empire seem likely to fare much better.</p>
<p>During a hearing <a href="https://lawandcrime.com/high-profile/the-immense-penalty-in-this-case-is-troubling-appeals-court-highly-skeptical-of-government-and-trial-court-in-trump-civil-fraud-case/" target="_blank" rel="noopener">in late September</a>, Trump’s arguments received a much warmer reception from the court than those essayed by James’ office. One judge on the New York Supreme Court’s Appellate Division, First Department said the “immense penalty” issued against the Trump Organization in the case was “troubling.”</p>
<p>Since then, the court has given no indication of a resolution – though a substantial paring back of the verdict appears to be probable.</p>
<p>And, then, on Nov. 5, Trump handily dispatched Vice President Kamala Harris with a lopsided victory in the electoral college.</p>
<p>Now, Trump and his allies are signaling the gloves are off.</p>
<p>Davis, who previously clerked for Supreme Court Justice Neil Gorsuch and now runs an organization that advocates for appointing conservative movement judges, has been bandied about as a potential Trump White House attorney general pick in a recent story by the <a href="https://www.wsj.com/politics/elections/donald-trump-cabinet-transition-president-42989f5b?st=xBaeHU&amp;reflink=article_copyURL_share" target="_blank" rel="noopener">Wall Street Journal</a>. That report also said Trumpworld was looking at Davis “for another legal-related post in the administration.”</p>
<p>While Davis jokingly shrugged off the Journal’s report in <a href="https://x.com/mrddmia/status/1854523777729650840" target="_blank" rel="noopener">a post on X</a> (formerly Twitter), his aggressive stance towards James suggests he expects to play some sort of role in the incoming administration.</p>
<p>“I promise you,” Davis continued. “Think long and hard before you wanna violate President Trump’s constitutional rights or any other American’s constitutional rights. It’s not gonna happen again.”</p>
<p><em>Have a tip we should know? <a href="http://lawandcrime.com/cdn-cgi/l/email-protection#6b1f021b182b070a1c0a050f081902060e45080406"><span class="__cf_email__" data-cfemail="0f7b667f7c4f636e786e616b6c7d66626a216c6062">[email protected]</span></a></em></p>
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<p>The post <a href="https://homesafetytechpros.com/potential-trump-ag-threatens-to-prosecute-letitia-james/">Potential Trump AG threatens to prosecute Letitia James</a> appeared first on <a href="https://homesafetytechpros.com">Home Safety Tech Pros</a>.</p>
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		<title>Letitia James takes victory lap over SCOTUS Shkreli denial</title>
		<link>https://homesafetytechpros.com/letitia-james-takes-victory-lap-over-scotus-shkreli-denial/</link>
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		<pubDate>Tue, 08 Oct 2024 07:08:20 +0000</pubDate>
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					<description><![CDATA[<p>Left: NEW YORK, NY – AUGUST 04: Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, pauses while speak to members of the media outside federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017 (People: Martin Shkreli Transmission Ref: MNC1 Hoo-Me.com / MediaPunch/IPX). Right: FILE – New [&#8230;]</p>
<p>The post <a href="https://homesafetytechpros.com/letitia-james-takes-victory-lap-over-scotus-shkreli-denial/">Letitia James takes victory lap over SCOTUS Shkreli denial</a> appeared first on <a href="https://homesafetytechpros.com">Home Safety Tech Pros</a>.</p>
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<div id="attachment_484891" style="width: 1210px" class="wp-caption alignnone"><img fetchpriority="high" decoding="async" aria-describedby="caption-attachment-484891" class="size-full wp-image-484891" src="https://am23.mediaite.com/lc/cnt/uploads/2024/10/Marti-Shkreli-Letitia-James.jpg" alt="Left: NEW YORK, NY - AUGUST 04: Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, pauses while speak to members of the media outside federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017 (People: Martin Shkreli Transmission Ref: MNC1 Hoo-Me.com / MediaPunch/IPX). Right: FILE - New York Attorney General Letitia James speaks during a press briefing, Feb. 16, 2024, in New York. A New York man has been charged with sending death threats to James and the Manhattan judge who presided over former President Donald Trump’s civil suit. (AP Photo/Bebeto Matthews, File) " width="1200" height="627"/></p>
<p id="caption-attachment-484891" class="wp-caption-text">Left: NEW YORK, NY – AUGUST 04: Martin Shkreli, former chief executive officer of Turing Pharmaceuticals AG, center, pauses while speak to members of the media outside federal court in the Brooklyn borough of New York, U.S., on Friday, Aug. 4, 2017 (People: Martin Shkreli Transmission Ref: MNC1 Hoo-Me.com / MediaPunch/IPX). Right: FILE – New York Attorney General Letitia James speaks during a press briefing, Feb. 16, 2024, in New York (AP Photo/Bebeto Matthews, File).</p>
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<p>The disgraced former CEO derisively known as “Pharma Bro” will not get to <a href="https://lawandcrime.com/supreme-court/martin-shkrelis-former-lawyer-whom-pharma-bro-called-lazy-and-stupid-and-paid-too-much-asks-scotus-to-save-his-401k-from-the-feds/" target="_blank" rel="noopener">plead his case before the nation’s highest court</a>.</p>
<p>Listed among dozens of pages of <a href="https://www.supremecourt.gov/orders/courtorders/100724zor_4gdj.pdf" target="_blank" rel="noopener">single-line orders</a> issued Monday was the U.S. Supreme Court’s denial of <a href="https://lawandcrime.com/tag/martin-shkreli/" target="_blank" rel="noopener">Martin Shkreli</a>‘s appeal of a lower court ruling banning him for life from the pharmaceutical industry and ordering him to pay $64.6 million. As Law&amp;Crime has previously reported, Shkreli — a <a href="https://lawandcrime.com/politics/pharma-bro-martin-shkreli-sentenced-to-7-years-for-fraud/" target="_blank" rel="noopener">convicted felon</a> who served over five years in prison for defrauding hedge fund investors — became a household name after inflating the price of AIDS drug Daraprim by 5,000%. At the time, Daraprim was the only FDA-approved drug for the treatment of toxoplasmosis, a parasitic disease that poses serious and often life-threatening consequences for those with compromised immune systems, including babies born to women infected with the disease and individuals with HIV.</p>
<aside class="o-callout__recirculate o-callout"/>
<p>“The high price and distribution changes Shkreli made limited access to the drug, forcing many patients and physicians to make difficult and risky decisions for the treatment of a life-threatening disease,” James said in the statement.</p>
<p>In 2022, the federal District Court for the Southern District of New York <a href="https://lawandcrime.com/high-profile/judge-determines-martin-shkreli-deserves-to-be-banned-for-life-from-participating-in-pharmaceutical-industry-in-any-capacity/" target="_blank" rel="noopener">issued the ban and the fine</a>, which was <a href="https://lawandcrime.com/health-care/not-gates-zuckerberg-rockefeller-but-little-old-me-pharma-bro-martin-shkreli-goes-ballistic-on-federal-appeals-court-for-upholding-lifetime-ban-from-pharma-industry/" target="_blank" rel="noopener">later upheld</a> by the Second U.S. Circuit Court of Appeals.</p>
<p>New York Attorney General <a href="https://lawandcrime.com/tag/letitia-james/" target="_blank" rel="noopener">Letitia James</a> said in a statement Monday that Shkreli should not be able to avoid responsibility.</p>
<p>“Martin Shkreli tried to profit off of vulnerable people by jacking up lifesaving medicine to ludicrous prices and preventing cheaper generic drugs from launching,” James said in the statement. “His selfishness had consequences, and that is why I joined with the FTC and my fellow attorneys general to hold Shkreli accountable and to stop his outrageous actions.”</p>
<p>James added that the legal win “reinforces how our state’s tough anti-fraud laws help protect New Yorkers and ensure bad actors cannot abuse their power, wealth, or influence.”</p>
<p>Shkreli’s legal issues are note yet over, however. He allegedly made copies of a rare Wu-Tang album that he sold in order to satisfy a $7.4 million forfeiture order and <a href="https://lawandcrime.com/high-profile/pharma-bro-martin-shkreli-threatened-with-contempt-over-copies-of-rare-wu-tang-album-after-sufficiently-serious-questions-raised-about-livestream/" target="_blank" rel="noopener">played it on a livestream</a>, in contravention of rules regarding the album’s sale and was threatened with a contempt charge.</p>
<p>“Yeah, that’s the Wu-Tang album for all you crazy streamer people,” he allegedly said during a June 18, 2022, livestream of the album — one of three alleged instances of sharing the highly-prized album with the public.</p>
<p><em>Have a tip we should know? <a href="http://lawandcrime.com/cdn-cgi/l/email-protection#fd89948d8ebd919c8a9c93999e8f949098d39e9290"><span class="__cf_email__" data-cfemail="e7938e9794a78b869086898384958e8a82c984888a">[email protected]</span></a></em></p>
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<p>The post <a href="https://homesafetytechpros.com/letitia-james-takes-victory-lap-over-scotus-shkreli-denial/">Letitia James takes victory lap over SCOTUS Shkreli denial</a> appeared first on <a href="https://homesafetytechpros.com">Home Safety Tech Pros</a>.</p>
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		<title>Appeals court looks receptive to Trump in civil fraud case</title>
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		<pubDate>Thu, 26 Sep 2024 19:52:47 +0000</pubDate>
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					<description><![CDATA[<p>Left: New York Attorney General Letitia James speaks to the media, Nov. 6, 2023, in New York (AP Photo/Ted Shaffrey, File). Center: Justice Engoron. (AP Photo/Seth Wenig, File). Right: Former President Donald Trump speaks during a break in closing arguments at New York Supreme Court, Thursday, Jan. 11, 2024, in New York. (AP Photo/Seth Wenig). [&#8230;]</p>
<p>The post <a href="https://homesafetytechpros.com/appeals-court-looks-receptive-to-trump-in-civil-fraud-case/">Appeals court looks receptive to Trump in civil fraud case</a> appeared first on <a href="https://homesafetytechpros.com">Home Safety Tech Pros</a>.</p>
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<div id="attachment_432882" style="width: 1210px" class="wp-caption alignnone"><img fetchpriority="high" decoding="async" aria-describedby="caption-attachment-432882" class="size-full wp-image-432882" src="https://am21.mediaite.com/lc/cnt/uploads/2024/01/james-trump-1.jpg" alt="Left: New York Attorney General Letitia James speaks to the media, Nov. 6, 2023, in New York. AP Photo/Ted Shaffrey, File /Center: Justice Engoron. AP Photo/Seth Wenig, File./Right: Former President Donald Trump speaks during a break in closing arguments at New York Supreme Court, Thursday, Jan. 11, 2024, in New York. (AP Photo/Seth Wenig)" width="1200" height="627"/></p>
<p id="caption-attachment-432882" class="wp-caption-text">Left: New York Attorney General Letitia James speaks to the media, Nov. 6, 2023, in New York (AP Photo/Ted Shaffrey, File). Center: Justice Engoron. (AP Photo/Seth Wenig, File). Right: Former President Donald Trump speaks during a break in closing arguments at New York Supreme Court, Thursday, Jan. 11, 2024, in New York. (AP Photo/Seth Wenig).</p>
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<p>Attorneys for former President <a href="https://lawandcrime.com/tag/donald-trump/" target="_blank" rel="noopener">Donald Trump</a> made their case for overturning his $454 million <a href="https://lawandcrime.com/tag/civil-fraud/" target="_blank" rel="noopener">civil fraud</a> judgment before a panel of appellate judges in New York City on Thursday afternoon.</p>
<p><a href="https://lawandcrime.com/high-profile/a-disaster-for-new-york-trump-appeal-says-civil-fraud-trial-judge-rubber-stamped-lawless-letitia-james-campaign-promise-to-punish-violations-that-do-not-exist/" target="_blank" rel="noopener">In July</a>, Trump filed a <a href="https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=NL6OISPoRm5iOaP7BPFaCw==" target="_blank" rel="noopener">116-page appellate brief</a> with the New York Supreme Court’s Appellate Division, First Department. At the heart of the long-and-winding appeal is an allegation the trial court violated the law by allowing New York Attorney General <a href="https://lawandcrime.com/tag/letitia-james/" target="_blank" rel="noopener">Letitia James</a> to bring time-barred claims against Trump and his namesake family business.</p>
<p>In more headline-generating terms, Trump argued the lower court, helmed by Justice Arthur Engoron, allowed James, a Democrat, to go after her avowed political enemy for violations that “do not exist at all” and to secure “draconian, unlawful, and unconstitutional penalties.”</p>
<p>The attorney general’s office, in response, argued there was “overwhelming evidence” the Trump Organization “acted with an intent to defraud” by engaging in an “illegal scheme to misleadingly inflate the net worth” of Trump himself “by as much $2.2 billion a year.”</p>
<aside class="o-callout__recirculate o-callout"/>
<p>“This case involves a clear-cut violation of the statute of limitations and the law of the case doctrine” Trump attorney John Sauer said at the outset of <a href="https://www.youtube.com/watch?v=emwvMtwZ53k" target="_blank" rel="noopener">the hearing</a> on Thursday.</p>
<p>An earlier appeals court decision removed Ivanka Trump from the same lawsuit based on statute of limitations issues. Trump claims that ruling proves fatal to most of the state’s present case because it concerns transactions — loans — that were completed prior to 2016.</p>
<p>“Why didn’t we say that?” one of the judges asked — stopping the attorney midsentence.</p>
<p>The issue, Sauer said, is that the trial court allowed the government to punish financial statements based on a “theory that the post-closing submission of annual financial statements constituted continuing wrongs.” Meanwhile, Trump’s attorney argued, those loans themselves had closed years beyond the statute of limitations.</p>
<p>The most the government could have done is look at financial statements filed beginning in 2017, Trump’s attorney argued. Instead, the government went back and used statements filed in 2012 to obtain “crippling financial penalties.”</p>
<p>“There was a complete disregard of the statute of limitations,” Sauer added.</p>
<p>While Trump’s attorney was quickly cut off — and the judges appeared generally noncommittal on statute of limitations arguments — the 45th president’s arguments, overall, received a much warmer reception from the court than those essayed by the government.</p>
<p>In fact, Judith Vale, speaking for the attorney general’s office, was cut off before she could even get her first sentence out.</p>
<p>“All of the defendants repeatedly violated,” was about as far as she could get before the first of many judges interjected — to ask a question that appeared to ridicule the state’s argument.</p>
<p>The first judge asked Vale for a citation to “any previous case” where the attorney general sued under Executive Law §63(12) “to upset a private business transaction” using “written disclaimers” regarding “inherently subjective valuations” and “where the victim never complained about any fraud in the transaction or losses from it.”</p>
<p>Then, before Vale could answer, another judge quickly piled on, adding that the government attorney should also be prepared to cite a case that also had “little to no impact on the public marketplace.”</p>
<p>“There was harm to the counterparties,” the attorney general’s lieutenant argued. “There was harm to the market.”</p>
<p>Those abrupt and askance questions set the tone for how the appellate body viewed and treated the state’s legal position.</p>
<p>Many of the judges were skeptical of the size of the financial penalty issued against Trump and his co-defendants.</p>
<p>“The immense penalty in this case is troubling,” one judge said.</p>
<p>Another judge criticized the math used by the attorney general and the trial court: “Wouldn’t it have been more appropriate to calculate them by calculating the difference in valuation of the property versus the valuation provided to the banks to get the loans?” she asked.</p>
<p>Yet another judge, when addressing Sauer, essentially agreed with Trump that the trial court underestimated the value of Mar-a-Lago to the tune of several tens of millions of dollars — at least.</p>
<p>The trial court valued the former president’s combined home and private club at $18 million. But, a judge on Thursday noted that there was undisputed expert testimony in the record that the property brings in some $50 million per year in revenue.</p>
<p>Another judge then teed up Sauer for an apparent win — suggesting the trial court’s decision to disregard Trump’s expert testimony about accounting practices was inappropriate in the present case.</p>
<p>“Creating an issue of fact, correct?” she asked.</p>
<p>“Exactly right, your honor,” Sauer said.</p>
<p>Just one of the judges sitting on the five-judge panel appeared conciliatory to the broad mandate contained in the statute used by the attorney general’s office — and to the state’s arguments about the reach of the law in question. But even this judge appeared hesitant to agree that the banks in question suffered any harm — or that the mandate in §63(12) was quite as broad as the state suggested.</p>
<p>“These misstatements and omissions were about objective facts that were extremely important and that any reasonable counterparty would want to know,” Vale said. “Any sophisticated, reasonable counter-party would want to know that the defendants were valuing an apartment based on 20,000 square feet more than it really was.”</p>
<p>While the nitty-gritty of the allegations against Trump was met with a muted response, the judges drilled down on the idea that the major counter-party, Deutsche Bank, dealt with, and were diligent enough to know how to deal with, similar such loan applications all the time.</p>
<p>“I’m sorry, but what’s being described sounds like a potential commercial dispute between private actors,” one judge said during another portion of Vale’s presentation — cutting her off again.</p>
<p>Another judge pushed back in similar fashion when the government attorney attempted to outline the harm as the state viewed it: “You’ve got two really sophisticated parties in which no one lost any money.”</p>
<p>Still, another judge outright chided the attorney general for “interfering with these private transactions…where people don’t claim harm.”</p>
<p>Sauer returned to the dais to highlight a key fact that, he argued, also did not factor into the trial court’s order on summary judgment: Deutsche Bank’s own representative testified that Trump would have received the same interest rate if he was only valued at $1 billion — three times less than how the state valued Trump.</p>
<p>Trump’s attorney played up the notion of free market participants interacting freely — with a keen understanding of disclaimers and interest rates. On the opposite end of the ideological frame, he posited: dull-edged governmental overreach.</p>
<p>“My colleague struggled to articulate any clear principle that would put any transaction outside the reach of the statute,” Sauer said. “Our position is narrow. Which is that, on the facts of this case…no reliance, no materiality, Deutsche Bank saying ‘We would have given him the exact same deal!’ And we have clear disclaimers. Surely this is not within the statute. And if this is, there’s nothing that falls outside of the statute. And that is a sweeping and unsettling thing.”</p>
<p>And, at least on Thursday, the appeals court appeared to be a largely receptive audience for Trump’s pro-business angle.</p>
<p>“You hear underneath all these questions, the question of mission creep,” a judge told Vale. “Has §63(12) morphed into something that it was not meant to do? And that’s something you must address. Because there must be some limit on what the Attorney General can do.”</p>
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		<title>$364 million punishment issued in Trump civil fraud case</title>
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		<pubDate>Fri, 16 Feb 2024 21:36:49 +0000</pubDate>
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					<description><![CDATA[<p>Left: Former President Donald Trump speaks during a break in his civil business fraud trial at New York Supreme Court, Wednesday, Oct. 25, 2023, in New York. (AP Photo/Seth Wenig). Right: Judge Arthur Engoron presides over former President Donald Trump’s civil business fraud trial at New York Supreme Court, Wednesday, Oct. 25, 2023, in New [&#8230;]</p>
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<div id="attachment_418020" style="width: 1210px" class="wp-caption alignnone"><img fetchpriority="high" decoding="async" aria-describedby="caption-attachment-418020" class="size-full wp-image-418020" src="https://am23.mediaite.com/lc/cnt/uploads/2023/10/Donald-Trump-Arthur-Engoron-10K-fine.jpg" alt="Donald Trump, Arthur Engoron 10K fine" width="1200" height="627"/></p>
<p id="caption-attachment-418020" class="wp-caption-text">Left: Former President Donald Trump speaks during a break in his civil business fraud trial at New York Supreme Court, Wednesday, Oct. 25, 2023, in New York. (AP Photo/Seth Wenig). Right: Judge Arthur Engoron presides over former President Donald Trump’s civil business fraud trial at New York Supreme Court, Wednesday, Oct. 25, 2023, in New York. (Spencer Platt/Pool Photo via AP)</p>
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<p>Former President <a href="https://lawandcrime.com/high-profile/our-first-look-at-trumps-iconic-mug-shot-after-surrendering-on-rico-charges-for-trying-to-overturn-2020-election/" target="_blank" rel="noopener">Donald Trump</a>, along with some of his family members and business associates, must pay hundreds of millions of dollars to the state of New York for lying about his companies’ finances.</p>
<p>Manhattan Supreme Court Justice Arthur Engoron ruled Friday that Trump, his businesses, his sons Eric Trump and Donald Trump Jr., and former Trump CFO <a href="https://lawandcrime.com/high-profile/ex-trump-organization-cfo-allen-weisselberg-sentenced-to-five-months-behind-bars-at-rikers-island/" target="_blank" rel="noopener">Allen Weisselberg</a> owe a combined $364 million to the Empire State.</p>
<p>“The frauds found here leap off the page and shock the conscience,” the judge said in the 92-page ruling.</p>
<p>Engoron determined that Trump, the Trump Organization, and various Trump business ventures owe a combined $355 million. Eric Trump and Donald Trump Jr. are each liable for around $4 million, while Weisselberg must pay $1 million for his role in the fraud.</p>
<p>As one example, Engoron noted Trump’s valuation of his Mar-a-Lago estate in Florida, where he is alleged to have wrongfully stored documents from his time in the White House.</p>
<p>“Donald Trump insisted that he believed Mar-a-Lago is worth ‘between a billion and a billion five’ today, which would require not only valuing it as a private residence, which the deed prohibits, but as more than the most expensive private residence listed in the country by approximately 400%,” the judge wrote.</p>
<p>The judge also found that Trump and his associates <a href="https://lawandcrime.com/high-profile/necessary-and-appropriate-new-york-attorney-general-asks-judge-to-ban-trump-for-life-from-empire-state-real-estate-industry-and-make-him-pay-370-million-penalty-for-repeated-and-persistent-fra/" target="_blank" rel="noopener">cannot be trusted to honestly do business in the state</a>, and issued yearslong restrictions on all of them.</p>
<p>“[T]his Court finds that defendants are likely to continue their fraudulent ways unless the Court grants significant injunctive relief,” Engoron wrote.</p>
<p>“The Court hereby enjoins Donald Trump, Allen Weisselberg, and Jeffrey McConney from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years,” the ruling says. Donald Trump Jr. and Eric Trump are also barred from serving as officers or directors “of any New York corporation or other legal entity in New York” for two years.</p>
<p>“The evidence is overwhelming that Allen Weisselberg and [former Trump Organization controller] Jeffrey McConney cannot be entrusted with controlling the finances of any business,” the ruling also says. “Accordingly, this Court hereby permanently enjoins Allen Weisselberg and Jeffrey McConney from serving in the financial control function of any New York corporation or similar business entity operating in New York State.”</p>
<p>Trump and his business are also barred from applying for loans “from any financial institution chartered by or registered with the New York State Department of Financial Services for a period of three years,” the ruling says.</p>
<p>Engoron also determined that retired federal judge <a href="https://lawandcrime.com/trump/judge-instructs-court-monitor-overseeing-trump-organization-immediately-report-unusual-suspicious-or-fraudulent-activity/" target="_blank" rel="noopener">Barbara Jones</a> will continue her oversight of the Trump businesses.</p>
<p>“[T]he Hon. Barbara Jones (ret.) shall continue in her role as Independent Monitor for no less than three years,” Engoron wrote. In addition, an “Independent Director of Compliance shall be installed at the Trump Organization, at defendants’ expense, to ensure compliance with financial reporting obligations and to establish internal written accounting and financial reporting protocols.” Engoron ordered Jones to provide the court with a list of people she would recommend for the compliance role.</p>
<p>In his ruling, Engoron said that holding Trump and his businesses accountable is necessary to protect the public.</p>
<p>“This Court is not constituted to judge morality; it is constituted to find facts and apply the law,” the ruling says. “In this particular case, in applying the law to the facts, the Court intends to protect the integrity of the financial marketplace and, thus, the public as a whole. Defendants’ refusal to admit error — indeed, to continue it, according to the Independent Monitor — constrains this Court to conclude that they will engage in it going forward unless judicially restrained.”</p>
<p>Engoron noted that former Trump “fixer” <a href="https://lawandcrime.com/tag/michael-cohen/" target="_blank" rel="noopener">Michael Cohen</a> was believable with his testimony, despite having previously pleaded guilty to perjury and offering sometimes contradictory statements at trial.</p>
<p>“[H]e testified that although Donald Trump did not expressly direct him to reverse engineer financial statements, he ordered him to do so indirectly, in his ‘mob voice,&#8221;” Engoron wrote. Noting the “palpable” animosity between Trump and Cohen did give Cohen an “incentive to lie,” Engoron “found his testimony credible, based on the relaxed manner in which he testified, the general plausibility of his statements, and, most importantly, the way his testimony was corroborated by other trial evidence.”</p>
<p>“A less-forgiving factfinder might have concluded differently, might not have believed a single word of a convicted perjurer,” the judge wrote. “This factfinder does not believe that pleading guilty to perjury means that you can never tell the truth. Michael Cohen told the truth.”</p>
<p>The decision marks the end of New York Attorney General Letitia James’ <a href="https://lawandcrime.com/trump/letitia-james-files-massive-fraud-lawsuit-asking-judge-to-permanently-bar-trump-and-his-children-from-serving-as-officer-or-director-in-any-new-york-corporation/" target="_blank" rel="noopener">massive civil fraud lawsuit</a> against the former president, his sons Eric Trump and Donald Trump Jr., and Trump’s businesses over “numerous acts of fraud and misrepresentation in the preparation of Mr. Trump’s annual statements of financial condition” from 2011 to 2021. James said that Trump, along with his co-defendants, inflated his net worth by billions and violated the law in doing so.</p>
<p>The $364 million sum is more than quadruple the <a href="https://lawandcrime.com/trump/the-trump-docket-trump-must-pay-83m-to-carroll-for-defamation-as-legal-battles-churn-ahead/" target="_blank" rel="noopener">$83 million in damages</a> Trump owes writer <a href="https://lawandcrime.com/tag/e-jean-carroll/" target="_blank" rel="noopener">E. Jean Carroll</a>, whom he was found to have defamed after she went public with sexual abuse claims against him.</p>
<p>The civil fraud litigation was brought against the former Republican president, his children, and the Trump Organization in September 2022 by James, a Democrat, and aimed to essentially kick numerous Trump-related entities out of the Empire State.</p>
<p>Engoron had <a href="https://lawandcrime.com/trump/can-only-be-considered-fraud-judge-finds-donald-trump-his-older-sons-and-their-family-business-empire-guilty-of-fraud-cancels-numerous-businesses-and-licenses-in-new-york/" target="_blank" rel="noopener">ruled in late September</a> that Trump, his eldest sons, and the family business were all liable for fraud. In a series of <a href="https://www.documentcloud.org/documents/23991970-engoron-order-nys-v-trump-1" target="_blank" rel="noopener">three</a> <a href="https://www.documentcloud.org/documents/23991971-engoron-order-nys-v-trump-2" target="_blank" rel="noopener">35-page</a> <a href="https://www.documentcloud.org/documents/23991972-engoron-order-nys-v-trump-3" target="_blank" rel="noopener">orders</a>, Engoron found that the 45th president and his namesake company inflated his net worth and grossly overvalued their assets on years’ worth of financial paperwork to bilk banks and insurance companies so that they could “transact business.”</p>
<p>Trump’s daughter, Ivanka Trump, was <a href="https://lawandcrime.com/high-profile/ivanka-trump-testifies-she-had-no-role-in-crafting-her-fathers-financial-statements-but-email-suggests-she-knew-about-his-net-worth-problem/" target="_blank" rel="noopener">initially named in the lawsuit</a> but was eventually dismissed.</p>
<p>The trial started on Oct. 2. It was often punctuated by Trump’s <a href="https://lawandcrime.com/trump/trump-slapped-with-fine-for-violating-gag-order-in-civil-fraud-trial-warned-about-imprisonment/" target="_blank" rel="noopener">repeated</a> <a href="https://lawandcrime.com/trump/witness-is-not-credible-trumps-own-testimony-leads-to-another-hefty-fine-for-violating-gag-order-in-ny-civil-fraud-case/" target="_blank" rel="noopener">violations</a> of Engoron’s orders regarding the former president’s <a href="https://lawandcrime.com/high-profile/that-is-disgraceful-trump-goes-after-fraud-suit-judges-law-clerk-on-truth-social-mid-trial-and-calls-her-schumers-girlfriend/" target="_blank" rel="noopener">baseless allegations</a> against the judge’s primary law clerk, who Trump said was linked to Sen. Chuck Schumer, D-N.Y., and insisted that it proved the trial was “rigged.” Trump <a href="https://lawandcrime.com/high-profile/trump-sues-new-york-fraud-trial-judge-to-shut-down-unconstitutional-gag-orders-argues-jurist-is-wielding-unfettered-license-to-inflict-public-punishments-for-speech/" target="_blank" rel="noopener">sued Engoron</a> over the gag order, <a href="https://lawandcrime.com/high-profile/the-gravity-of-potential-harm-is-small-trump-lawsuit-over-civil-fraud-trial-judges-gag-orders-not-permitted-appellate-court-rules/" target="_blank" rel="noopener">to no avail</a>.</p>
<p>In his ruling Friday, Engoron noted that Trump’s behavior during the trial had an impact on the judge’s ultimate decision.</p>
<p>“Overall, Donald Trump rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial,” Engoron wrote. “His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility.”</p>
<p>As the trial wound down, it briefly appeared that Trump was poised to give closing arguments in the case, Engoron <a href="https://lawandcrime.com/high-profile/judge-bars-trump-from-giving-fraud-trial-closing-argument-after-he-refuses-to-stick-to-relevant-issues/" target="_blank" rel="noopener">nixed that request</a>, telling lawyers that Trump appeared to be unable to stick to the “relevant” matters underpinning the trial.</p>
<p>Trump is currently facing 91 criminal charges in four different jurisdictions: <a href="https://lawandcrime.com/trump/donald-trump-indictment-34-felony-charges-for-falsifying-business-records-in-connection-with-hush-money-payments-to-stormy-daniels/">falsification of business records</a> charges in New York, <a href="https://lawandcrime.com/trump/fulton-county-da-indicts-former-president-donald-trump-for-interfering-with-georgia-2020-election-results/">racketeering and conspiracy charges</a> in Georgia, <a href="https://lawandcrime.com/high-profile/trumps-mar-a-lago-indictment-finally-unsealed-reveals-former-president-faces-dozens-of-felony-charges-and-decades-in-prison/">wrongful retention of documents</a> charges in Florida, and <a href="https://lawandcrime.com/trump/former-president-donald-trump-indicted-for-efforts-to-overturn-2020-presidential-election/">election subversion allegations</a> in Washington, D.C.</p>
<p>According to a press statement, James “will give remarks on her landmark victory in her office’s civil fraud trial against Donald Trump and the Trump Organization” on Friday evening.</p>
<p>Read the ruling <a href="https://www.documentcloud.org/documents/24432594-ny-v-trump-civil-fraud-engoron-ruling-feb-16?responsive=1&amp;title=1" target="_blank" rel="noopener">here</a>.</p>
<p><em>Matt Naham, Brandi Buchman, and Adam Klasfeld contributed to this story.</em></p>
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