New York Democratic Gov. Kathy Hochul faced criticism after a ruling fined former President Donald Trump and his company $355 million for consumer fraud.
The total damages amounted to over $450 million.
The judge banned Trump from serving as an officer or director of any New York company for three years and his sons for two years.
The ruling stated that the Trump Organization inflated property values to secure better loan terms.
“I think that this is really an extraordinary, unusual circumstance that the law-abiding and rule-following New Yorkers who are business people have nothing to worry about, because they’re very different than Donald Trump and his behavior,” Hochul said.
“By and large, [other business owners] are honest people, and they’re not trying to hide their assets, and they’re following the rules,” she added.
Despite Trump’s claims of innocence, the judge imposed hefty fines.
“The case was brought under a consumer fraud statute that has never ever been used before for this purpose,” Trump said.
“Who suffered here? We haven’t seen a long list of victims,” University of Michigan law professor William Thomas said.
Critics argued that the ruling sets a concerning precedent for New York business owners.
“[T]he 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,” George Washington University Law School professor Jonathan Turley said.
“Undervaluing and overvaluing property is a longstanding practice in New York real estate,” he added.
“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,” Turley said. “This draconian award is only going to deepen concerns over the arbitrary application of the law.”
“In the name of protecting businesses in New York, you probably just led to hundreds of businesses looking at potential rentals in Florida because they look and they go, ‘Wow, if we fall on the wrong side of the politics in New York, they could sell us off for spare parts,’” he said.
“So unless the appeals process in New York comes to the rescue, New York has become a legal banana republic,” former President George W. Bush press secretary Ari Fleischer said.
“Democratic NY Governor Hochul effectively tells NY businesses not to worry — it was all about getting Trump,” Judicial Watch president Tom Fitton said.
"The case was brought under a consumer fraud statute that has never ever been used before for this purpose."
Former President Donald Trump reacts to his NY civil fraud verdict.
More: https://t.co/H1OtuWWR2t pic.twitter.com/evW9TsDYb7
— NEWSMAX (@NEWSMAX) February 18, 2024
Democratic NY Governor Hochul effectively tells NY businesses not to worry–it was all about getting Trump. https://t.co/rbej7qCoN8
— Tom Fitton (@TomFitton) February 18, 2024
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