‘No one is above the law.’ Trump faces staggering fine for years of financial fraud

Amna Nawaz:

In a stunning financial blow, a judge in New York today fined Donald Trump and his business associates more than $350 million, ruling they engaged in a yearslong effort to inflate the value of their assets in order to defraud banks and insurance companies.

Judge Arthur Engoron also barred Trump from serving as an officer or director of any business in New York state for three years. New York Attorney General Letitia James, who prosecuted this case, celebrated the decision today, saying in a statement — quote — "No matter how big, rich or powerful you think you are, no one is above the law."

For his part, the former president blasted the ruling in a statement posted on social media, writing — quote — "The justice system in New York state and America as a whole is under assault by partisan, deluded, biased judges and prosecutors."

William Brangham has been following this case closely and joins us now.

So, William, by all accounts, a fine of more than $350 million is a punishing financial blow to former President Trump. Tell us more about what the judge ruled today.

William Brangham:

That's exactly right, Amna.

This is a stunning legal and financial blow to the former president. Trump himself is ordered now to pay over $355 million. His two adult sons each have to pay $4 million. Trump's chief financial officer has to pay $1 million.

Trump, as you mentioned, is barred from running any business in New York state for three years. His sons are barred for two years. The judge also ruled that an oversight monitor who is currently watching the companies will stay on her job. She will also have the authority to appoint an independent compliance monitor who will keep an eye out going forward.

So, there's no doubt that Trump will appeal this ruling. But based on a statement of his own assets from this trial itself, this penalty could basically take and cost the former president all of his current available cash savings.

Amna Nawaz:

, William, in prosecuting this case, new Attorney General Letitia James argued Trump and his associates committed repeated fraud. The judge clearly agreed with that.

Can you remind us specifically about what Mr. Trump and his associates were found guilty of doing?

William Brangham:

That's right.

The prosecution and now the judge affirms this, that over a decade-long period, the Trump organizations and their various companies inflated the assets of their holdings, and they put out these statements that basically exaggerated their true net worth.

And they did this so that banks and insurance companies would look at those companies and say, oh, they're much rosier than actually was true. And so, over the years, they benefited enormously from what the judge called blatantly false financial statements.

For example, they tripled the square footage of a luxury penthouse. They said that real estate projects that were not completed were completed. They said they had millions of dollars in cash on hand that they could control, when they didn't.

And Judge Engoron in his ruling today was withering towards the former president and his company, saying that they were unwilling to acknowledge this fraud and that they were certainly not willing to vow to do differently going forward.

In his ruling, he wrote — quote — "Their complete lack of contrition and remorse borders on pathological. They were accused only of inflating asset values to make more money. The documents prove this over and over again. Donald Trump is not Bernard Madoff. Yet the defendants are incapable of admitting the error of their ways."

And so Judge Engoron in his ruling issued this enormous financial judgment against them and barred them from doing work in New York state for years to come.

Amna Nawaz:

All right, that is William Brangham reporting live for us from New York tonight.

William, thank you so much.

William Brangham:

You're welcome, Amna.