Below is my column in The Hill on the $355 million verdict against Trump and his corporation in New York. The damages in my view are excessive and absurd after the court acknowledged that no one lost a dime in these exchanges. Indeed, the “victims” wanted to do more business with Trump and made handsome profits. New York Gov. Kathy Hochul has rushed to assure businesses that there is “nothing to worry about” after the corporate public execution of Trump and his company. The assumption seems to be that you have nothing to fear from confiscatory actions unless you are Trump in New York. That is precisely why the New York Court of Appeals should act to redeem the integrity of the legal system by setting aside or drastically reducing this award.
Here is the column:
In laying the foundation for his sweeping decision against former President Donald Trump, Judge Arthur Engoron observed that “this is a venial sin, not a mortal sin.” Yet, at $355 million, one would think that Engoron had found Trump to be the source of Original Sin.
The judgment against Trump (and his family and associates) was met with a level of unrestrained celebration by many in New York that bordered on the indecent. Attorney General Letitia James declared not only that Trump would be barred from doing business in New York for three years, but that the damages would come to roughly $460 million once interest was included.
That makes the damages against Trump greater than the gross national product of some countries, including Micronesia. Yet the court admitted that not a single dollar was lost by the banks from these dealings. Indeed, witnesses testified that they wanted to do more business with Trump, who was described as a “whale” client with high yield business opportunities.
Undervaluing and overvaluing property is a longstanding practice in New York real estate. The forms submitted by the Trump organization cautioned the banks to do their own estimates and the loans were paid in full and on time. Yet, the New York law used by James is a curiosity because it does not actually require a victim. Indeed, everyone can make ample profits and still allow for an investigation into “repeated fraudulent or illegal acts.”
Having campaigned on bagging Trump on any basis, James turned the law into a virtual license to hunt him down along with his family and his associates.
Engoron proved the perfect judge for the case. The opinion itself seems almost cathartic for the jurist who struggled with Trump inside and outside of court. In the judgment, Engoron fulfilled Oscar Wilde’s rule that the only way to be rid of temptation is to yield to it. He ordered everything short of throwing Trump into a wood chipper.
The size of the damages is grotesque and should shock the conscience of any judge on appeal. Even if the Democrat-appointed judges on the New York Court of Appeals were to ignore the obvious inequity and unfairness, the United States Supreme Court could intervene.
State courts tend to get a significant amount of deference in the interpretation of their own laws. After all, if New York wants to turn Wall Street into a remake of “The Hunger Games,” it has only itself to blame as other businesses flee the state.
The impact on New York business is likely to be dire. New York is already viewed as a hostile business environment, with the top end of its tax base literally heading south as taxes and crime rises. This draconian award is only going to deepen concerns over the arbitrary application of the law by figures like James, who previously sought to disband the National Rifle Association. (She has shown less interest in cracking down on liberal organizations like Black Lives Matter or the National Action Network of Al Sharpton despite their own major financial scandals.)
As James gleefully uses this law to break up a major New York corporation, it is hard to imagine many businesses rushing to the Big Apple. This follows Democratic politicians such as Rep. Alexandria Ocasio-Cortez (N.Y.) campaigning against Amazon seeking to open new facilities in the city. After this week, drawing new businesses to the city is going to be about as easy as selling country estates during the French Revolution.
The one hope for New York businesses may be the U.S. Supreme Court. Despite the deference afforded to the states and their courts, the court has occasionally intervened to block excessive damage awards.
For example, in 1996, the justices limited state-awards of punitive damages under the Due Process Clause of the Fourteenth Amendment. In that case, BMW was found to have repainted luxury cars damaged in transit without telling buyers.
An Alabama jury awarded $4,000 in compensatory damages for the loss of value in having a factory paint job, but then added $4 million in punitive damages. Even when the Alabama Supreme Court reduced that to $2 million, the U.S. Supreme Court still found it excessive. Even liberals on the Court such as John Paul Stevens and Stephen Breyer agreed that such “grossly excessive” awards raise a “basic unfairness of depriving citizens of life, liberty, or property, through the application of arbitrary coercion.”
The court may find almost half a billion dollars in damages without a single lost dollar from a victim to be a tad excessive.
That prospect will not dampen the thrill-kill environment in New York this week. In electing openly partisan prosecutors such as James and District Attorney Alvin Bragg, voters have shown a preference for political prosecutions and investigations.
In “Bonfire of the Vanities,” Tom Wolfe wrote about Sherman McCoy, a successful businessman who had achieved the status of one of the “masters of the universe” in New York. In the prosecution of McCoy for a hit-and-run, Wolfe described a city and legal system devouring itself in the politics of class and race. The book details a businessman’s fall from a great height — a fall that delighted New Yorkers.
It is doubtful Trump will end up as the same solitary figure wearing worn-out clothes before the Bronx County Criminal Court clutching a binder of legal papers. But you do not have to feel sorry or even sympathetic for Trump to see this award as obscene. The appeal will test the New York legal system to see if other judges can do what Judge Engoron found so difficult: set aside their feelings about Trump.
New York is one of our oldest and most distinguished bars. It has long resisted those who sought to use the law to pursue political opponents and unpopular figures. It will now be tested to see if those values transcend even Trump.
Jonathan Turley is the J.B. and Maurice C. Shapiro Professor of Public Interest Law at the George Washington University Law School.
The judge was a drummer and a Vietnam War protester in his former life. He went one toke over the line this time.
Watching the New York legal system in action tells me as a tourist not to visit New York City. If I were a New York based business, I would close up shop and move somewhere they would appreciate my business.
No PR firm can negate the emotion of watching the illegal thugs who beat up the police offers, released without bail and who stuck the middle finger to them in scorn. Yet, this is only a symptom of something far more vile.
Officers
For any business to stay in NYC it would be suicide. Only a matter of time before they come after your business.
The lesson here would be that a company can commit brazen fraud in NYC for 40 years with no consequences then finally face consequences in a fifth decade which are far less than your profits from the fraud over the years.
Did the court show 40 years of fraud? NO.
Was anyone defrauded? NO.
AWFL analysis.
Nah. Trump was fine in NY when he was a Democrat. As long as he was buying off, er, I mean donating to Democrats, they didn’t bother him.
After he became a Republican, his former party decided to destroy him.
The New York state legislature controlled by Democrats changed the law so a claimant could bring a fantastical claim about a sexual assault that allegedly happened almost 30 years ago. No police report exists documenting the alleged sexual assault. The manager of Bergdorf Goodman was not notified that the most recognizable man in New York City had randomly selected her for sexual assault so the manager could try to protect other female shoppers. She doesn’t even know what year it happened, which makes it impossible for Trump to put on a defense to prove he wasn’t there. Yet twelve jurors listened to this and found him liable. For almost $100 million.
While nobody knows if it happened, everyone knows the case was purely political. A Democrat billionaire paid most or all of her legal fees in an effort to destroy him. The Democrat run New York legislature changed the law for her so she could bring the suit in its effort to destroy him.
Business BETTER beware.
Yes Heather, the lesson here is not Abuse of Power by corrupt partisan officials.
Heather also understands that Antifa are the good guys.
They are the ANTI fascists, don’t you see?
Heather will also tell you that Joe Biden did nothing wrong in mishandling classified documents.
Biden’s own DOJ’s special counsel essentially declared him unfit to stand trial,
because he’s done nothing wrong. That is the lesson here.
Trump’s the criminal, don’t you silly people see?
LOL Heather, just LOL.
Professor Turley is absolutely right this week’s ruling will have a dire impact on any New York businesses who falsify business records & commit tax fraud. Trump’s CFO, Allen Weisselberg, pleaded guilty to 15 tax fraud counts & the Trump Organization was convicted on 17 counts including tax fraud, conspiracy & falsifying business records.
Trump claims Mar-a-Lago is worth $1.5 billion. So if his Florida property taxes are based on his own assessed value of Mar-a-Lago, his annual property tax bill should be $14.7 million—and his previous property taxes should be revised to reflect his own publicly stated property value. That would probably add up to an additional $100 million in property taxes over the past 10 years or so.
Turley has spent Joe Biden’s entire presidency transforming his website into a thrill-kill environment targeting “the Biden Crime Family” but now defends Don Jr. & Eric Trump after they were convicted of issuing false financial statements, falsifying business records & each fined $4 million.
Keep in mind Turley is thoroughly disgusted by any Americans exhibiting a gleeful preference for partisan prosecutions & investigations.
Hey Anonymous, are your property taxes based on what Zillo says your home is worth? Morons, absolute morons.
Excellent point, hullbobby. From now on, I’ll start telling everyone my house is worth $5 billion.
It’s hilarious how you Trump supporters dutifully defend Trump making ridiculously wild valuations of his holdings & net worth. The guy’s supposedly a billionaire, but he relies on small donors & GoFundMe contributions to help cover his legal expenses.
You Biden supporters claim that the judge’s appraisal of 18 million is proper, a complete joke. Hey, what would stop the judge from imposing a billion dollar fine, or 10 billion? Is there no limit?
Keep defending this lawfare and watch as Trump gets elected.
There is not a single state that taxed real estate based on actual fair market value.
JT says “That is precisely why the New York Court of Appeals should act to redeem the integrity of the legal system by setting aside or drastically reducing this award. “
What? Are you saying that some punishment is ok (“or drastically reducing”)? That means trump did something wrong. JT further stated “Undervaluing and overvaluing property is a longstanding practice in New York real estate.” So go ahead, break the law, no problem here because “nobody” was hurt. But that isn’t the standard. It is fraud that trump used to get loans at a rate that those that did not commit fraud could not get. So if a bank is to stay in business, they need to charge others more interest because thay gave trump a deal not available to those that follow the law and don’t commit fraud.
Yes, there are victims, they are the regular person that just wants a $100,000 loan, All the “little people” that trump says he cares so much about got screwed so trump could save more money. Trump is a tool that is using you. If you don’t get it, go ahead send him your hard earned dollars, he needs it to pay his lawyers so he can screw someone else.
. It is fraud that trump used to get loans at a rate that those that did not commit fraud could not get.
The bank testified they negotiated the loan , never considering the valuations on the application.
Bob the Retard thinks he is more informed on NYC real estate transactions the Deutsche Bank
I hope you sent trump some of your money, you are exactly the stooge that trump is looking for.
Send Trump some of my money/
I am always interested in investments. If Trump was involved, I would consider the facts, more than the people involved, I invest in areas I understand. Not personalities
You’re lying again. Search on “relied” in the ruling, and you’ll see how many times the banks did consider the valuations on the applications.
Respectfully, you obviously do not understand financial economics. The more profit that Trump the Whale’s lenders make, the more they can lend to others –as well as afford to adjust their risk assessments in considering potential defaults on loans by the Minnows (“regular persons that just want a $100,000 loan”). Don’t let your hate and jealousy of Trump get in the way of facts….
Yea, right, I’m an idiot, even though you know nothing about me. When people like you make assumptions on so little information, it really shows the stupidity to call people names. Yes, there were victims. How come Deutsche Bank was the only one doing business with trump? After stiffing hundreds of contractors and anyone that took a class at trump U, virtually every other bank would not loan to trump. Deutsche bank loaned to him only because they felt they had to prop him up in the hopes of getting anything back from him. trumps NY business was in shambles in 2015, that is the reason he turned to politics. A new source of money. And now he wants complete control of the RNC. Why? So he can use it as his own piggy bank. Believe what you will, I don’t expect you to listen to this idiot. I mean, you’ve invested so much in trump, you have to keep it going for the same reason Deutsch Bank did. Prove you’re right at any cost.
When the Repos lose big in November, take a look in the mirror and tell yourself how smart you are.
“How come Deutsche Bank was the only one doing business with trump?”
You mean other than UBS, Lehman Brothers, Wachovia, Credit Suisse First Boston, and scores of others?
Keep showing your ignorance. It reveals the Left’s desperation.
Bob must be hungry…because Anonymous keeps eating his lunch. Boob actually brought up Trump U as a reason to fine the company half a billion dollars..all while the Ivies charge 300,000 to teach kids about gender, race and oppression.
At least you admit you are an idiot.
“Bob says: Yea, right, I’m an idiot”. That is the only true thing you’ve ever said here.
Bob that’s rant on steriods. going back 8 years for some reason. Deflecting and going off topic. Retard moves because you are intellectual incapable of grasping the concepts in discusion
“. . . there are victims, they are the regular person that just wants a $100,000 loan . . .”
Right. Because Deutsche Bank is in the habit of loaning money to a “regular person.”
“All the “little people” that trump says he cares so much about got screwed . . .”
Typical Leftist ignorance of basic economics and finance. *Because* of borrowers like Trump, banks have more money (not less money) to lend.
The idiot above thinks it is fine that TAX PAYERS are being forced to pay back Progressive rich kids student loans…..Talk about hypocrisy. They took out loans are refuse to pay them back. Trump paid HIS back….
“JT further stated “Undervaluing and overvaluing property is a longstanding practice in New York real estate.” So go ahead, break the law,”
Bob, there is no law regarding under or overvaulting property. Only nutcases lacking critical thinking skills believe this nonsense.
” It is fraud that trump used to get loans at a rate that those that did not commit fraud could not get. So if a bank is to stay in business, they need to charge others more interest because thay gave trump a deal not available to those that follow the law and don’t commit fraud.”
The banks made a lot of money off of Trump, and that permits them to lend to others. Banks do their own evaluations. I hope you have help in the house to handle your financial affairs.
Where exactly are the lawsuits where other businesses and individuals are claiming, “The bank wouldn’t lend me or MY business ANY money because it ran out because it illegally loaned it all to Trump!!”
President Donald Trump, America’s Alexei Navalny.
Margot keeps hitting it out of the park!
I’ve been looking for a certain type of vehicle lately and found that dealers are tacking on up to $10,000 above sticker price. Why? Just because they can. Should they all be fined for fraud or should I just walk away?
Or, maybe the Greatest Patriot in the history of the Universe could have just paid his taxes like every other resident and business in New York, rather than play with paperwork, for decades, in order to dodge said taxes the same way his fake bonespurs were used to dodge the draft.
Dumbbell’s “that makes me smart” actions also have nothing to do with New York’s ridiculously high taxes and insanely stupid spending on certain programs. Separate issues. But as usual the brainwashed pretend the conman is a champion of the laws that he’s disregarded without penalty over a lifetime.
Proving your ignorance by posting. Get educated..
Remember that Trump has only been paying $750 per year in federal taxes based on his fraudulent accounting. So while this judgment seems like a lot of money – he has cheated on his taxes far more than this amount over the years.
TDS is strong with this one
A common side effect of BDS is accusing others of TDS. Seek help.
The left is not funny anymore, exhibit #24516521
Get it straight, TDS is suffered by Trump’s opponents, BDS is suffered by biden himself.
The idiot above calls Trump a tax cheat…as he supports the Bidens! If Trump was a tax cheat does anyone think that Biden’s IRS wouldn’t have arrested him, tried him and had him in Putin Prison by now?
The IRS has been all over auditing his businesses for years — apparently you have more information than they
The IRS has been all over his businesses for years — apparently you have more information than they
Taking advantage of poorly written tax laws is not “cheating”. dear
As usual the press will only show you what it wants you to see. The portion of the Trump tax return(s) that was reported was the amount that was the balance due after he had paid estimated taxes. Yes there were some years where no tax was due because of the losses of the companies that “pass through” their profits and/or losses to the individual partners based on their percentage share. The $750 was a misdirection by the press at that time. A tax return by someone like Trump would be audited frequently, if not every year, and believe me when I say the IRS does not just look at the one tax return and it’s components, it does a deep dive.
henry, whoever tells you what to think is a moron.
Shockingly, Bonfire of the Vanities’ DA is extremely similar to Engoron in every aspect, from ego to looks – plus ca change.
The best book of the 1980s.
Trump has been doing this kind of fraud his whole life. He has gone bankrupt a few times – so it is not the case that all the banks are always paid after his frauds.
Would other companies behave the way Trump does in court, going after the judge and judge’s staff and putting lives at risk? Trump does this all the time in all sorts of courts, but legitimate companies and business people do not do that.
Why can’t Trump just follow the rules that apply to the rest of the country? Why does Turley always defend him and take Trump’s side when Trump does not follow the rules that apply to everyone else?
Poor Bubba,
I suggest you learn more about the law and doing business.
I wonder whose sock puppet you are.
Sounds like Brooklyn Dad Defiant aka @mmpalledan
bubba Trump has never gone bankrupt
What fraud? The claim is he over valued his property.. how is that fraud ? You do realize the banks are required to look into the actual value, don’t you ?
You liberals are hilariously insane.
Actually, some Trump companies filed for bankruptcy protection and went into reorganization. The banks always get their money unless there is a complete liquidation of a company, then they may get partial payment. Trump’s biggest problem has always been his mouth, he just can’t help himself. However, in the recent court judgements, the Carroll case and the James prosecution, the inherent fairness that people use to judge someone is colored by their dislike, actually hatred, of the person. The awards were to punish the man for being who he is, not what he has done, and are beyond egregious.
Perhaps NY can use the proceeds from this fraud case to give to bronx blacks to payoff their school loans?
The is a interesthing thing that I don’t see anyone talking about.
At the core of this case… they ‘got’ Trump because he over valued his properties thus committing fraud.
As Kevin O’Leary points out that the charge against Trump is normal business when it comes to property valuation…
(BTW another point that will come out in the appeal where Engoron made Trump’s case)
The warning is that James could go after anyone.
Commercial real estate transactions, or the person w a side gig flipping homes.
Yet we don’t see it.
James ran on ‘Getting Trump’.
But no one else has been charged like this in the past.
Apply Occam’s Razor. This was about getting Trump. Election interference by James and Engoron.
The interesting thing is that James could face misconduct and a civil lawsuit by Trump.
Engoron could at most face sanctions for his violation of his judicial canons. (#5) But good luck in getting other judges to agree.
Election interference is a crime.
You can charge James, but not Engoron. At best you could force him to retire. If you charge him, you would have to show he acted in concert w James rather than take the case that fell into his lap.
I guess I’m getting ahead of myself. but this is a possibility.
-G
Agreed. Yet the worst outcome for James and the judge is dismissal and maaaaybe a civil judgement against them for malicious prosecution. If found guitly, who pays for that? Taxpayers (again). Therein lies a hugh problem in my humble opinion…these corrupt prosecutors and judges get to keep their taxpayer-paid pensions despite their malice toward ‘equal justice under the law’. In other words, they have nothing to lose by continuing to be corrupt while laughing all the way to the bank.
Great piece, JT!
This nails the wicked motivation of James and her ilk:
“James turned the law into a virtual license to hunt [Trump] down along with his family and his associates.”
So you support fraud.
What fraud? The claim is he overvalued his property.. thats not fraud.
Wally,? who suffered the faud
“who suffered the faud”
“The People,” of course. With James as the Voice of the People.
Said every tyrant since forever.
wally, so you support stupidity.
weird how uniparty Republicans do nothing!
If they are willing to do it to Trump, they are willing to do it to anyone. You can’t control what the next guy in power is going to do and you can’t put the genie back in the bottle.
Just admit it…Democrats are FASCISTS…fighting a Civil War
Time to TAKE AWAY THEIR MONEY. End Federal Aid to cities, states, colleges and non-profits where anyone gets $100k+
Let Democrats fund their OWN failure.
Also time for a 5% tax on the GROSS of all wall street transactions or moving money offshore…. Make it about INVESTING…not gambling! Too much power with too few BAD PEOPLE!
New York needs the money to keep giving away free stuff to its citizens. They obviously can’t afford to continue to do crazy things as the Tax base doesn’t allow for it! Take away most of the Cities and the Government, New York is a Beautiful State. It’s the Cities and Government that are making it a horrid place to live and do business in.
Hey, New York businesses – come to Ohio. We’re The Heart of It All
Trump should file a civil suit against the New York prosecutor for deprivation of his rights to do business in the State of NY. Yes, prosecutors and judges have absolute immunity but, according to the Supreme Court, this immunity can be pierced by prosecutors who conduct investigations or advise police who on how they should conduct investigations. Sect. 1983 is somethimes called the “KKK Act” because it was used in the late 19th century to address states that deprived blacks of their constitutional rights. How ironic that today, more than a century later, the tables have turned. Here is the language of the statute that seems written for the occasion:
§1983. Civil action for deprivation of rights
Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress, except that in any action brought against a judicial officer for an act or omission taken in such officer’s judicial capacity, injunctive relief shall not be granted unless a declaratory decree was violated or declaratory relief was unavailable. For the purposes of this section, any Act of Congress applicable exclusively to the District of Columbia shall be considered to be a statute of the District of Columbia.
(R.S. §1979; Pub. L. 96–170, §1, Dec. 29, 1979, 93 Stat. 1284 ; Pub. L. 104–317, title III, §309(c), Oct. 19, 1996, 110 Stat. 3853 .)
@JJC
Absolute Immunity means you’re not able to be prosecuted period.
Qualified immunity means you have limited immunity but under certain circumstances you can be prosecuted.
James has qualified immunity, however, prosecutorial misconduct opens her up to liability.
(The courts would have to find that she committed this… )
Then there’s a civil rights violation of depriving Trumps rights acting under the color of the law.
It will be interesting to see what the appellate court does.
While Turley focuses on the obscene penalty… the are many other issues with the case.
The moment Engoron found Trump guilty via a summary judgement, it became almost automatic that Trump would appeal.
A summary judgement that early means that ‘facts’ represented by James were not in dispute. (Clearly they were)
The DB Bankers testimony clearly shows that there was no wrong doing.
There is so much more to unpack that Trump’s lawyers could write a novel on the things wrong w this case and conviction.
As Turley points out. It will go to the State’s appellate court and then depending on the outcome it flows up to SCOTUS.
As to motive… election interference.
But that’s a major issue unto itself.
-G
Thank you, Ian, for that clarification. Yes, absolute is what it says, absolute. But improper behavior or prosecutorial misconduct can nullify this. There seems to be abundant evidence of this, e.g., running for political office on the theme, “I will get him,” or the unprecedented nature of the case itself, or the unfair judgment, etc. – these all suggest misconduct in using the color of state law to deprive Trump of his constitutional rights to not be deprived of property without due process (an intereting 14th Amendment twist).
“. . . no one lost a dime in these exchanges.”
This is where the collectivist Left pipes up: But the fraud was against *the people* of New York.
There is no such thing as “fraud” against “the people.” That is a collectivist fantasy that should have been buried with the French Revolution. Further, it was not “the people’s” dime. That dime was owned by the banks (and by the Trump companies). They are the *only* two parties that matter, morally and legally. And neither party alleged theft or fraud.
That is the Rule of Contract. Which the Left replaces with mob rule — and its typical result: A swath of destruction.
@Sam,
Go one step further.
There was no crime in the first place.
The application of the statute was a willful misinterpretation of law itself.
That’s why even calling it a victimless crime is wrong as there was no actual crime
Whoever valued hunter’s paintings for $500k should be sued under this new interpretation
Sir! You forget or don’t want to see that the US is already in the middle of a civil war. Warfare is replaced by lawfare. Elections will be rigged again, MSM, FBI, DOJ, CIA and others working together to keep the puppet, called Joe, as president. The republic will be replaced by a dictatorship.