Judge Arthur Engoron snapped at Donald Trump’s lawyers for arguing the court cannot fine the former president for illegal profits during his civil business fraud trial on Tuesday.
New York Attorney General Letitia James is suing former President Donald Trump for $250 million, accusing him of inflating his net worth by billions of dollars to obtain benefits such as better bank loans and reduced tax bills between 2011 and 2021. Trump maintains his innocence in the case, accusing prosecutors of targeting him for political purposes. The lawsuit is civil, not criminal, meaning that Trump will not face jail time in this case. Trump has pleaded not guilty in this case as well as in the other three indictments he’s currently facing.
Judge Arthur Engoron ruled last month that Trump, his adult sons, their businesses, and executives committed fraud and will now decide on six other accusations, including falsifying business records, insurance fraud, and conspiracy claims during the trial.
During the trial on Tuesday, Engoron voiced frustration with Trump’s attorneys when they sought to preclude one of James’ witnesses, also dismissing their argument that fining Trump would not be a potential remedy, ABC News reported.
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Trump’s attorneys have argued that James has not proven banks would have acted differently if they knew the true valuation of Trump’s assets, rather than the value allegedly inflated by the Trump Organization. But Engoron disputed that notion, describing Trump’s legal team as “whistling past the graveyard,” according to the report.
“For reasons this court has explained ad nauseam, that view is simply incorrect. Disgorgement is a clearly available remedy,” Engoron said.
Disgorgement is a legal remedy requiring a party who profited from illegal or wrongful acts to give up any profits they made from doing so, to “prevent unjust enrichment,” according to Cornell Law School.
Judge Engoron said, “Several witnesses have testified that they would have acted differently had they known the statements of financial condition were fraudulent.”
Newsweek reached out to Trump’s legal team for comment via email.
Trump’s business fraud trial has been marked by several tense moments between his lawyers and Engoron, who at several points has scolded Trump for his behavior, such as when he was seen speaking with his attorneys during witness testimony.
Engoron has also issued a limited gag order against Trump for continued attacks made against his law clerk. He fined Trump $10,000 last week for violating that order by accusing the clerk of being “partisan.” Engoron accused Trump of lying under oath by not offering up “credible” testimony. Trump has said the gag order violates his First Amendment right to discuss the legal matter as he campaigns for a second term as president.
The trial is set to continue into November, with scheduled testimony from Trump and his adult children, Donald Trump Jr., Eric Trump, and Ivanka Trump, who last week lost a challenge to avoid testifying, as she was dropped from the lawsuit due to a statute of limitations.
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