Written by Kayla EpsteinBBC New York, New York
Michael M. Santiago/Getty ImagesIn a shocking blow to his business empire, Donald Trump has been fined around $355m (£281m) by Judge Arthur Engoron in the long-awaited conclusion of the billionaire's fraud trial. found to be responsible for paying.
In another shock, a judge banned the real estate figure once synonymous with the Manhattan skyline from doing business in New York for three years.
Judge Engoron generally agreed with Attorney General Letitia James' argument that the Trump Organization fraudulently misrepresented its assets and had to pay dearly to obtain better loans and interest rates over the years.
Although the judge overturned an earlier controversial ruling that threatened to dissolve many of Trump's businesses in New York, the ruling still represents a serious setback for the 77-year-old.
Here are important things to know about Judge Engoron's decision and its impact.
1. Overwhelming economic sanctions against Trump
Mr Trump and his real estate group were ordered to pay a fine of $354,868,768 (£281m), just short of the amount Mr James had sought. This is a huge amount even for a billionaire.
The former president's two sons, Donald Trump Jr. and Eric Trump, who currently run the Trump Organization, must each pay a $4 million fine. Allen Weisselberg, former chief financial officer of the Trump Organization, must pay $1 million.
Defendants may also have to pay significant interest on the fine, potentially increasing the total by millions of dollars. Ms. James estimated that Mr. Trump's final payout could reach $463.9 million.
“It's a resounding defeat for the former president on every count,” said Mitchell Epner, a white-collar lawyer in New York.
Mr. Trump is likely to appeal Judge Engoron's decision. However, to uphold his sentence pending his appeal, he must pay the full fine within 30 days.
And the fine comes on the heels of a recent jury awarding author E. Jean Carroll $83.3 million for defamation. Combined, the two could give Trump more cash at his disposal.
There is There were several ways he could find money, And all those routes can face complications.
“He's going to have to figure out what to do with his assets, maybe liquidate his business and find a way to raise that money,” former federal prosecutor Sarah Klisoff said before sentencing.
2. President Trump is banned from doing business in New York, but not permanently.
Judge Engoron has banned President Donald Trump from doing business in New York for three years. His sons Eric and Donald Jr. were sentenced to two years in prison.
James had asked for Trump to be permanently banned, but Judge Engoron opted for a shorter suspension.
Pool (Getty Images)Trump hasn't spent much time in the city where he built his empire these days, with most of his recent visits being for court appearances. Instead, he established himself in Florida, a much more favorable political climate.
And this order does not apply outside the state. Mr. Trump has other businesses and assets both domestically and abroad, and Judge Engoran's order does not prevent Mr. Trump from engaging in them.
Nevertheless, the ruling will significantly limit his ability to do business in the city where some of his most valuable assets are located, New York Law School professor Steve Cohen told the BBC.
Cohen said the ruling was designed to “eliminate the ability of Donald Trump and those acting on his behalf to do business in the state of New York, a jurisdiction in which this court has jurisdiction. “This is a full use of the powers of this court.”
3. Judge reverses controversial initial ruling, Trump Organization survives
One of the biggest questions ahead of the ruling was whether Judge Engoron would stick to his original ruling in September, which ordered the dissolution of Trump's New York businesses.
Legal experts have serious questions about whether the broad anti-fraud laws that Mr. James used to file his lawsuit also apply to Mr. Trump's business, which is in the form of a limited liability company (LLC). I was holding her. Judge Engoron's previous decision targeted these businesses, but today he reversed that decision.
In exchange, Mr. Trump will place these companies and the Trump Organization under strict oversight, and decisions regarding the “reorganization and dissolution” of Mr. Trump's LLCs will be left to the authority of the supervisors.
This amendment makes it less likely that Judge Engoron's decision will be overturned on appeal.
“It's always better to self-correct than to be undone,” Cohen said.
He explained that the Trump Organization will continue to exist in a modified and highly scrutinized form.
However, Cohen added that while the worst outcome of dissolving Trump's New York operations was avoided, the ruling is still an incredibly broad interpretation of the fraud statute.
4. A court monitor will monitor the case at all times.
The ruling was highly detrimental to Trump, but he received some reprieve as Judge Engoron decided to install an independent monitor for at least three years.
Cohen explained that Judge Engoron could have appointed a trustee to oversee Trump's business, which would have given him more control over its operations. A separate monitor is still a significant oversight, but a less severe option.
“Instead of them being put in straitjackets and guarded behind closed doors, they're handcuffed and guarded behind closed doors,” Cohen said.
Michael M. SantiagoStill, the independent monitors would have broad powers to keep Mr. Trump's businesses afloat.
Supervisor Barbara Jones can appoint an independent compliance director to work under her, and the Trump Organization must pay them.
“By putting this extra layer in place, this compliance officer literally becomes a person sitting at the Trump Organization, and nothing can come out without that person's approval,” said Diana Florence, a former federal prosecutor. “I can't even issue any orders.”
“This is a big problem and should have the effect of deterring misstatements of financial records.”
5. Judgment reveals Trump's controversial business practices
Judge Engoron emphasized his final decision by citing extensive evidence obtained throughout the trial.
And he did not hesitate to state the legitimacy of such a harsh sentence. At one point he quoted the British poet Alexander Pope, saying, “It is human to err, but it is God who forgives.”
“The defendants appear to think otherwise,” Judge Engoron wrote.
“Their complete lack of remorse and remorse borders on pathological,” he said. “Despite this, defendants are unable to admit the error of their ways. Instead, they adopt a 'see no evil, hear no evil, say no evil' attitude that the evidence belies.”
“This trial exposes the Trump Organization's poor corporate management in terms of its financial practices,” said Will Thomas, a professor at the University of Michigan's Ross School of Business.
With additional reporting from Madeline Halpert in New York City.
