NEW YORK — A New York judge ruled Friday against Donald Trump, imposing a $364 million penalty over what the judge ruled was a yearslong scheme to dupe banks and others with financial statements that inflated the former president's wealth.
Trump also was barred from serving as an officer or director of any New York corporation for three years.
Following the verdict, the former president spoke outside Mar-a-Lago and said he is the victim of those trying to attack his presidential campaign.
"These are corrupt people. These are people that shouldn't be allowed to do the things they do," Trump said. "And they're using this as weaponization against a political opponent who's up a lot in the polls. There's a fine of $355 million for doing a perfect job ... for having paid back a loan with no defaults, with no problems."
WATCH: Trump calls $355M fine 'weaponization against a political opponent'
Judge Arthur Engoron issued his decision after a 2½-month trial that saw the Republican presidential front-runner bristling under oath that he was the victim of a rigged legal system.
The stiff penalty was a victory for New York Attorney General Letitia James, a Democrat, who sued Trump over what she said was not just harmless bragging but years of deceptive practices as he built the multinational collection of skyscrapers, golf courses and other properties that catapulted him to wealth, fame and the White House.
Trump's lawyers had said even before the verdict that they would appeal.
James sued Trump in 2022 under a state law that authorized her to investigate persistent fraud in business dealings.
The suit accused Trump and his co-defendants of routinely puffing up his financial statements to create an illusion his properties were more valuable than they were. State lawyers said Trump exaggerated his wealth by as much as $3.6 billion one year.
By making himself seem richer, Trump qualified for better loan terms, saved on interest and was able to complete projects he might otherwise not have finished, state lawyers said.
Even before the trial began, Engoron ruled that James had proven Trump's financial statements were fraudulent. The judge ordered some of Trump’s companies removed from his control and dissolved. An appeals court put that decision on hold.
In that earlier ruling, the judge found that, among other tricks, Trump's financial statements had wrongly claimed his Trump Tower penthouse was nearly three times its actual size and overvalued his Mar-a-Lago estate in Palm Beach, Florida, based on the idea that the property could be developed for residential use, even though he had surrendered rights to develop it for any uses but a club.
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Trump, one of 40 witnesses to testify at the trial, said his financial statements understated his net worth and that banks did their own research and were happy with his business.
"There was no victim. There was no anything," Trump testified in November.
During the trial, Trump called the judge "extremely hostile" and the attorney general "a political hack." In a six-minute diatribe during closing arguments in January, Trump proclaimed, "I am an innocent man" and called the case a "fraud on me."
Trump and his lawyers have said the outside accountants that helped prepare the statements should've flagged any discrepancies and that the documents came with disclaimers that shielded him from liability. They also argued that some of the allegations were barred by the statute of limitations.
The suit is one of many legal headaches for Trump as he campaigns for a return to the White House. He has been indicted four times in the last year — accused in Georgia and Washington, D.C., of plotting to overturn his 2020 election loss to Democrat Joe Biden, in Florida of hoarding classified documents, and in Manhattan of falsifying business records related to hush money paid to porn actor Stormy Daniels on his behalf.
Engoron decided the case because neither side sought a jury and state law doesn't allow for juries for this type of lawsuit.
Because it was civil, not criminal, the case did not carry the potential of prison time.
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James, who campaigned for office as a Trump critic and watchdog, started scrutinizing his business practices in March 2019 after his former personal lawyer Michael Cohen testified to Congress that Trump exaggerated his wealth on financial statements provided to Deutsche Bank while trying to obtain financing to buy the NFL's Buffalo Bills.
James' office previously sued Trump for misusing his charitable foundation to further his political and business interests. Trump was ordered to pay $2 million to an array of charities as a fine and the charity, the Trump Foundation, was shut down.
Trump incorporated the Trump Organization in New York in 1981. He still owns it, but he put his assets into a revocable trust and gave up his positions as the company's director, president and chairman when he became president, leaving management of the company to sons Eric and Donald Trump Jr.
Trump did not return to a stated leadership position upon leaving the White House in 2021, but his sons testified he’s been involved in some decision-making.
Engoron had already appointed a monitor, retired federal judge Barbara Jones, to keep an eye on the company.
