While the $355 million New York fraud ruling against Donald Trump will put a serious dent in his bank account, it is the nonmonetary punishments that could be particularly painful for his company, says the Wall Street Journal. Justice Arthur Engoron banned Trump from serving as an executive of the Trump Organization or any other New York company for three years, and his sons Eric Trump and Donald Trump Jr. for two. Trump and his business are barred for three years from seeking for loans from financial institutions registered with or chartered in New York state. The restrictions will force Trump’s real-estate conglomerate to reimagine how it does business under the heavy oversight of a court appointed monitor. The judge ordered the installation of an independent compliance director at the Trump Organization.
The ban on borrowing could have the greatest impact because most large U.S. banks are registered or have charters with New York. “When you are a realtor, you need money,” said lawyer Evan Gotlob. “That ruling really encumbers their ability to get money to build around the world.” Trump could still get loans elsewhere, but the process would be more burdensome and likely involve smaller institutions. Engoron, siding with claims brought by New York Attorney General Letitia James, ruled that the Trumps committed a variety of civil-fraud offenses in a yearslong scheme to secure better terms from lenders by inflating the former president’s wealth. Trump called the case a political hit job designed to interfere with his bid to return to the White House. “There was no fraud,” Trump said Friday evening. “The banks all got their money, 100%. They love Trump.” On appeal, Trump can attack the size and scope of Engoron’s ruling. Close to half of the monetary penalties were based on the judge’s estimate of how much money Trump saved by obtaining cheaper credit. Engoron clawed back $187 million that Trump recently made from the sale of two properties. The judge’s tabulation of Trump’s allegedly ill-gotten gains could be challenged as too speculative.