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The Civil Fraud Ruling on Donald Trump, Annotated

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The Civil Fraud Ruling on Donald Trump, Annotated

Former President Donald J. Trump was penalized $355 million, plus millions more in interest, and banned for three years from serving in any top roles at a New York company, including his own, in a ruling on Friday by Justice Arthur F. Engoron. The decision comes after the state Attorney General Letitia James sued Mr. Trump, members of his family and his company in 2022.

The ruling expands on Justice Engoron’s decision last fall, which found that Mr. Trump’s financial statements were filled with fraudulent claims. Mr. Trump will appeal the financial penalty and is likely to appeal other restrictions; he has already appealed last fall’s ruling.

The New York Times annotated the document.

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New York Times Analysis

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This ruling by Justice Arthur F. Engoron is a result of a 2022 lawsuit filed by New York’s attorney general, Letitia James, against Donald J. Trump and the Trump Organization; his adult sons, Donald Trump Jr. and Eric Trump; the company’s former chief financial officer Allen Weisselberg and former controller Jeffrey McConney; and several of their related entities. Mr. Trump’s daughter, Ivanka Trump, was also initially a defendant until an appeals court dismissed the case against her.

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The law under which Ms. James sued, known by its shorthand 63(12), requires the plaintiff to show a defendant’s conduct was deceptive. If that standard is met, a judge can impose severe punishment, including forfeiting the money obtained through fraud. Ms. James has also used this law against the oil company ExxonMobil, the tobacco brand Juul and the pharma executive Martin Shkreli.

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Justice Engoron is now providing a background of this case. This ruling comes after a three-year investigation by the attorney general’s office and the conclusion of a trial that ended last month. But this likely won’t be Mr. Trump’s last word on the matter — he will appeal the financial penalty and is likely to appeal other restrictions, as he has already appealed other rulings.

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In late 2022, Justice Engoron assigned a former federal judge, Barbara Jones, to serve as a monitor at the Trump Organization and tasked her with keeping an eye on the company and its lending relationships. Last month, she issued a report citing inconsistencies in its financial reporting, which “may reflect a lack of adequate internal controls.”

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Here, Justice Engoron is laying out the laws he considered in his ruling beyond 63(12). The attorney general’s lawsuit included allegations of violations of falsifying business records, issuing false financial statements, insurance fraud and related conspiracy offenses.

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For over 50 pages, Justice Engoron describes his conclusions about the testimony of all of the witnesses who spoke during the trial.

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Justice Engoron discusses Mr. McConney’s important role in preparing Mr. Trump’s financial statements. The judge points out that Mr. McConney prepared all the valuations on the statements in consultation with Mr. Weisselberg.

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In his discussion of Mr. Weisselberg, Justice Engoron calls his testimony in the trial “intentionally evasive.” Justice Engoron then brings up Mr. Weisselberg’s separation agreement from the Trump Organization, which prohibited him from voluntarily cooperating with any entities “adverse” to the organization. Justice Engoron says that this renders Mr. Weisselberg’s testimony highly unreliable.

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When Donald Trump Jr. testified in court, he disavowed responsibility for his father’s financial statements despite serving as a trustee of the Donald J. Trump Revocable Trust while his father was president. But Justice Engoron specifically cites here that Donald Trump Jr. certified that he was responsible for the financial statements, and testified that he intended for the banks to rely on them and that the statements were “materially accurate.”

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During his testimony, Eric Trump, the Trump Organization’s de facto chief executive, initially denied knowing about his father’s financial statements until this case. As Justice Engoron points out here, Eric Trump eventually conceded to knowing about them as early as 2013. As a result, Justice Engoron calls Eric Trump’s credibility “severely damaged.”

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Justice Engoron points to Mr. Trump’s testimony when he took the witness stand in November when Mr. Trump acknowledged that he helped put together his annual financial statements. Mr. Trump said he would see them and occasionally have suggestions.

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After four pages of describing Mr. Trump’s testimony, Justice Engoron says Mr. Trump rarely responded to the questions asked and frequently interjected long, irrelevant speeches, which all “severely compromised his credibility.”

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For more than a dozen pages, Justice Engoron provides background on specific assets that Mr. Trump included in his annual financial statements.

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The judge is clarifying that Ms. James had to prove her claims by a “preponderance of the evidence,” meaning she had to demonstrate it was more likely than not that Mr. Trump and the co-defendants should be held liable. This is a lower standard than that of a criminal trial, which requires that evidence be proven “beyond a reasonable doubt.”

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During the trial, Mr. Trump and his legal team tried to shift the blame for any inaccuracies in his financial statements onto his outside accountants. But Justice Engoron criticizes that argument here.

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During the monthslong trial, Mr. Trump, his legal team and several witnesses stressed that real estate appraisals are an art, not a science. But here it’s clear Justice Engoron, while agreeing with that sentiment, also believes it’s deceptive when different appraisals rely on different assumptions.

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Justice Engoron is now going through the defendants one by one and articulating the evidence that shows each of their “intent to defraud,” which is required by the statute against falsifying business records. Notably, his first paragraph describing the former president’s intent provides examples including Mr. Trump’s awareness that his triplex apartment was not 30,000 square feet and his valuation of Mar-a-Lago as a single-family residence even though it was deeded as a social club.

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Among the defendants, Justice Engoron finds only Allen Weisselberg and Jeffrey McConney liable for insurance fraud. Here, he doesn’t provide an explanation for why the other defendants, including Mr. Trump and his adult sons, were not found liable, and he says that both Mr. Weisselberg and Mr. McConney made false representations to insurance companies about Mr. Trump’s financial statements.

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While Mr. Trump and his adult sons were not found liable for insurance fraud, here Justice Engoron finds them liable for conspiracy to commit insurance fraud, explaining that they all “aided and abetted” the conspiracy to commit insurance fraud by falsifying business records.

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Justice Engoron here adopts the approximations of the attorney general’s expert witness Michiel McCarty, whom Justice Engoron says testified “reliably and convincingly,” and finds that the defendants’ fraud saved them over $168 million in interest.

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In finding that the defendants were able to purchase the Old Post Office in Washington, D.C., through their use of the fraudulent financial statements, Justice Engoron rules that the defendants’ proceeds from the sale of the post office in 2022 should be considered “ill-gotten gains.” He penalizes Donald Trump and his companies over $126 million, and Donald Trump Jr. and Eric Trump $4 million each, for this one property.

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Justice Engoron blasts the defendants for failing to admit that they were wrong in their valuations — adding that “their complete lack of contrition and remorse borders on pathological.” He says that this inability to admit error makes him believe they will continue their fraudulent activities unless “judicially restrained.”

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Justice Engoron states that Judge Barbara Jones, who has been serving as an independent monitor at the Trump Organization since 2022, will continue in that role for at least three years. He clarifies that going forward, her role will be enhanced and she will review Trump Organization financial disclosures before they are submitted to any third party, to ensure that there are no material misstatements.

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Justice Engoron lays out his bans against the defendants, ruling that Mr. Trump, Mr. Weisselberg and Mr. McConney cannot serve as officers or directors of any corporation or legal entity in New York for the next three years, and bans his sons Donald Trump Jr., and Eric Trump for two years from the same. He also prohibits Mr. Trump from applying for any loans from any New York banks for the next three years. The ruling goes further in the cases of Mr. Weisselberg and Mr. McConney, permanently barring them from serving in the financial control function of any New York business.

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Justice Engoron also ordered that Mr. Trump and his sons pay the interest, pushing the penalty to $450 million, according to Ms. James.

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New York

Essential New York City Movies Picked by Ira Sachs and Blondie’s Debbie Harry and Chris Stein

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Essential New York City Movies Picked by Ira Sachs and Blondie’s Debbie Harry and Chris Stein

Film

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Leo McCarey’s “Make Way for Tomorrow” (1937). The Criterion Collection

‘Make Way for Tomorrow’ (1937), directed by Leo McCarey

The log line: After the bank forecloses on their home, an elderly couple must separate, each living with a different one of their adult children. 

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The pitch: “It’s a film that Orson Welles famously said ‘would make a stone cry,’” says Sachs, 60, about McCarey’s movie, singling out a long sequence at the end that depicts “a date through certain lobbies and bars of New York City that offers a snapshot of Midtown in the ’30s.” 

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Tippy Walker (left) and Merrie Spaeth in George Roy Hill’s “The World of Henry Orient” (1964). United Artists/Photofest

‘The World of Henry Orient’ (1964), directed by George Roy Hill

The log line: A wily 14-year-old girl and her best friend follow a ridiculous concert pianist, on whom they have a crush, around the city.

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The pitch: Hill’s 1960s romp inspired Sachs’s film “Little Men” (2016), which is about boys around the same age as these protagonists. “It’s an extraordinarily sweet film that also seems, to me, very honest,” he says. 

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Rip Torn (left) in Milton Moses Ginsberg’s “Coming Apart” (1969). Courtesy of the Everett Collection

‘Coming Apart’ (1969), directed by Milton Moses Ginsberg

The log line: Rip Torn plays an obsessive psychiatrist who secretly films all the women passing through his home office, inadvertently capturing his own mental breakdown. 

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The pitch: Shot in one room with a fixed camera, Ginsberg’s film “really feels of a time,” says Sachs. It’s also “very sexual and very free,” reminding him of what’s possible when it comes to making movies. 

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Don Murray and Diahn Williams in Ivan Nagy’s “Deadly Hero” (1975). Courtesy of the Everett Collection

‘Deadly Hero’ (1975), directed by Ivan Nagy

The log line: A disturbed, racist cop saves a cellist from a crook, only to become her tormentor. 

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The pitch: Harry, 80, and Stein, 76, were extras in Nagy’s film, which stars Don Murray, Diahn Williams and James Earl Jones as the cop, the cellist and the crook, respectively. The pair call the movie “[expletive] weird,” but also say that their day rate — $300 — “was the most money we’d ever made on anything” up to that point.

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Chantal Akerman’s “News From Home” (1976). Collections Cinematek © Fondation Chantal Akerman

‘News From Home’ (1976), directed by Chantal Akerman

The log line: An experimental documentary by Akerman, a Belgian filmmaker who moved to New York in her early 20s, the film features long takes of the city and voice-over in which the director reads letters from her mother. 

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The pitch: “I’m intrigued by how beauty contains sadness in the city,” says Sachs. Not only is her film a “beautiful record of the city” but it captures “what it is to be alone here, to have left some sort of community and, in particular for Chantal, separated from her mother.”

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Michael Wadleigh’s “Wolfen” (1981). Orion/Courtesy of the Everett Collection

‘Wolfen’ (1981), directed by Michael Wadleigh

The log line: Albert Finney stars as a former N.Y.P.D. detective who returns to the job to solve a violent and bizarre string of murders. 

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The pitch: Wadleigh’s film is not only a vehicle for Finney, says Stein, it also “has a lot of footage from the South Bronx when it was still completely destroyed” by widespread arson in the 1970s.

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Seret Scott in Kathleen Collins’s “Losing Ground” (1982).

‘Losing Ground’ (1982), directed by Kathleen Collins

The log line: Collins’s film — the first feature-length drama for a major studio directed by an African American woman — observes a rocky relationship between a college professor and her painter husband.

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The pitch: Sachs calls “Losing Ground” “a revelation.” The characters are “so human and fascinating and extremely modern,” he says, adding that he loves a movie that “exists in some very complete version of the local.”

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Griffin Dunne in Martin Scorsese’s “After Hours” (1985). Mary Evans/Ronald Grant/Everett Collection

‘After Hours’ (1985), directed by Martin Scorsese

The log line: In Scorsese’s black comedy, an office worker (Griffin Dunne) has a surreal and bizarre evening of misadventure while trying to get back uptown from a woman’s apartment in SoHo. 

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The pitch: Harry and Stein recommend this zany tale and borderline “nightmare” for the way it captures a bygone era of New York. “It’s this great image of [Lower Manhattan] when it was still raw, you know, Wild West territory,” Stein says. 

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A scene from Edo Bertoglio’s “Downtown 81” (1980-81/2000). Courtesy of Metrograph Pictures

‘Downtown 81’ (shot in 1980-81, released in 2000), directed by Edo Bertoglio

The log line: Bertoglio’s film is a striking portrait of a young artist who needs to raise money so he can return to the apartment from which he’s been evicted. 

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The pitch: Jean-Michel Basquiat stars as the artist in this snapshot of life in New York during the ’80s. Despite all the drama surrounding it — postproduction wasn’t completed until 20 years after filming, and for many years the movie was considered lost — the film is notable, says Stein, because “it’s got all the characters and all our buddies in it.”

These interviews have been edited and condensed.

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13 Actors You Should Never Miss on the New York Stage

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13 Actors You Should Never Miss on the New York Stage

Theater

Quincy Tyler Bernstine

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A master of active stillness, the 52-year-old Bernstine (imposing in the 2024 revival of John Patrick Shanley’s “Doubt,” above) has that great actorly gift of making thought visible. A natural leader onstage, she compels audiences to follow her.

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Victoria Clark

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One of the theater’s best singing actors, with Tonys for Adam Guettel and Craig Lucas’s “The Light in the Piazza” (2005) and David Lindsay-Abaire and Jeanine Tesori’s “Kimberly Akimbo” (above, 2022), Clark, 66, performs not on top of the notes but through them, delivering complicated characterization and gorgeous sound in each breath.

Susannah Flood

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Flood, 43, is a true expert at confusion, a good thing because she often plays characters like the twisted-in-knots Lizzie in Bess Wohl’s “Liberation” (above, 2025). What makes that confusion thrilling is how she grounds it not in a lack of information or purpose but, just like real life, in an excess of both.

Jonathan Groff

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The rare musical theater man with the unstoppable drive of a diva, Groff, 41, sweats charisma, as audience members in ringside seats at Warren Leight and Isaac Oliver’s Broadway musical “Just in Time” (above, 2025) recently discovered. Giving you everything, he makes you want more.

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William Jackson Harper

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Unmoored characters are often unsympathetic. But whether playing a confused doctor in the 2024 revival of Anton Chekhov’s “Uncle Vanya” or a delusional bookstore clerk in Eboni Booth’s “Primary Trust” (above, 2023), Harper, 46, makes vulnerability look easy, and hurt hard.

Joshua Henry

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There are singers who blow the roof off theaters, but the 41-year-old Henry’s voice is so huge and deeply connected to universal feelings that he seems to be singing inside you. Currently starring in the Broadway revival of “Ragtime” (above, by Lynn Ahrens, Stephen Flaherty and Terrence McNally), he blows the roof off your head.

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Mia Katigbak

Superb and acidic in almost any role — in distress (Annie Baker’s 2023 “Infinite Life,” above) or in command (2024’s “Uncle Vanya”) — Katigbak, 71, finds the sweet spot in even the sourest truths of the human condition.

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Judy Kuhn

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With detailed intelligence and specific intention informing everything she sings, Kuhn, 67, is (among other things) a Stephen Sondheim specialist — her take on Fosca in “Passion” (above, 2012) was almost literally wrenching. It requires intellectual stamina to keep up with the master word for word.

Laurie Metcalf

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The fierce, sharp persona you may know from her years on “Roseanne” (1988-97) is about a tenth of the blistering commitment Metcalf, 70, offers onstage in works like Samuel D. Hunter’s “Little Bear Ridge Road” (above, 2025). She goes there, no matter the destination.

Deirdre O’Connell

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For 40 years an Off Broadway treasure, O’Connell, 72, handles the most daring, out-there material — including, recently, a 12-minute monologue of cataclysmic gibberish in Caryl Churchill’s “Kill” (above, 2025) — as if it were as ordinary as barroom gossip.

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Conrad Ricamora

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Revealing the Buddy Holly in Benigno Aquino Jr. (in the 2023 Broadway production of David Byrne and Fatboy Slim’s “Here Lies Love”) or the queer wolf in Abraham Lincoln (in Cole Escola’s “Oh, Mary!,” above, last year), Ricamora, 47, is uniquely capable of great dignity and great silliness — and, wonderfully, both together.

Andrew Scott

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It’s a tough competition, but Scott, 49, may have the thinnest skin of any actor. Whether he’s onstage (playing all the characters in Simon Stephens’s Off Broadway “Vanya,” above, in 2025) or on film, every emotion — especially rue — reads right through his translucence.

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Michael Patrick Thornton

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Some actors are hedgehogs, projecting one idea blazingly. Thornton, 47, is a fox, carefully hoarding ideas and motivations. Keeping you guessing as Jessica Chastain’s benefactor in the 2023 revival of Henrik Ibsen’s “A Doll’s House” or as a pathetic lackey in last year’s production of Samuel Beckett’s “Waiting for Godot” (above, center), he holds you in his thrall.

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How a Geologist Lives on $200,000 in Bushwick, Brooklyn

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How a Geologist Lives on 0,000 in Bushwick, Brooklyn

How can people possibly afford to live in one of the most expensive cities on the planet? It’s a question New Yorkers hear a lot, often delivered with a mix of awe, pity and confusion.

We surveyed hundreds of New Yorkers about how they spend, splurge and save. We found that many people — rich, poor or somewhere in between — live life as a series of small calculations that add up to one big question: What makes living in New York worth it?

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Here’s one way to make New York more affordable: triple your income. After moving from Baton Rouge, La., in 2016 to attend graduate school, Daniel Babin lived mostly on red beans and rice or homemade “slop pots,” renting rooms in what he called a “cult house” and a building on a block his girlfriend was afraid to visit.

Then, in January, he got a job as a geologist with a mineral exploration company, with a salary of $200,000, plus a $15,000 signing bonus. A new city suddenly opened up to him. “I can take a woman out on a $300 dinner date and not look at the check and not feel bad about it,” he said. He also now has health insurance.

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Mr. Babin, 32, a marine geologist who also leads an acoustic string band, now navigates two economic worlds, one shaped to his postdoctoral income of $70,000 a year — when his idea of a date was a walk in Central Park — and the other reflecting his new income. In this world, he is shopping for a vintage Martin Dreadnought guitar, for which he will gladly drop $4,000.

Finding a New Base Line

On a recent morning at Mr. Babin’s home in Bushwick, Brooklyn, where he shares a 6,800-square-foot cohousing space with 17 roommates, he was still figuring out how to manage this split.

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Daniel Babin lives in a cohousing space modeled on the ethos of Burning Man, the annual arts festival in Nevada.

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“I’m feeling less inclined to just let it rip than I was a few months ago,” he said of his spending habits. He socks away $1,500 from each paycheck, and has not moved to replace his 2003 Toyota Corolla, an “absolute dump” given to him by his father. “Hopefully, I’m returning a little bit to some kind of base-line lifestyle that I’ve established for myself over the last five years,” he continued. “Because the fear is lifestyle inflation. You don’t want to just make more money to spend more money. That’s not the point, right?”

Lightning Lofts, the cohousing space where Mr. Babin has lived since January 2024, bills itself as part of a “social wellness movement” and seeks to continue the ethos of Burning Man, the annual communal art and cultural festival in the Nevada desert.

For a room with an elevated loft bed and use of common areas, Mr. Babin pays $1,400 a month in rent, plus another $250 for utilities and weekly housecleaning.

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He was first drawn to the organization through its events, including open mic “salons” where he played music or read from his science fiction writings. These were free or very cheap nights out, unpredictable and fascinating.

“You would see dance and tonal singing, and some dude wrote an algorithm that can auto-generate A.I. video based on what you’re saying — beautiful storytelling,” he said.

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“So I just showed up every month, basically, until they let me live here.”

The room was a good deal. He had looked at a nearby building where the rent was $1,900 for a room in a basement apartment that flooded once a month. “Ridiculous,” he said.

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But beyond its financial appeal, Mr. Babin liked the loft’s social life. “I used to be chronically lonely, and I just don’t feel lonely anymore,” he said. “Which is fantastic in a crazy place like New York. It’s so alive and it’s so isolating at the same time.”

Splurging on Ski Trips

Before Mr. Babin got his new job, he used to go to restaurants with friends and not eat, trying to save up $35 for a “burner” party — in the spirit of Burning Man — or Ecstatic Dance, a recurring substance-free dance party. He loved to ski but could not afford a hotel, so he would carry his old skis and beat-up boots to southern Vermont and back on the same day.

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“Going on a hike is a pretty cheap hobby,” he said, recalling his money-saving measures. “Living without health insurance is a good one.”

He still appreciates a good hike, he said. But on a recent ski trip, he splurged on new $700 boots and another $300 worth of gear. “I’m like, this is something I’ve wanted for 10 years, so I deserve it,” he said.

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He bought a $600 drone to take pictures for his social media accounts, and then promptly crashed it into the Caribbean (he’s now replacing the rotors in hopes of returning it to health).

He cut out the red beans and rice, he said, but his usual meal is still a modest $13 sandwich from the nearby bodega or $10 for pizza. “If I’m getting takeout and it’s less than $17, I don’t feel too bad about it,” he said.

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A Future After Cohousing

A big change is that dating is much more comfortable now, and he feels more attractive as a marriage prospect. “It turns out that a lot more people pay attention to you if you offer them dinner instead of a walk in the park,” he said.

He is now thinking of leaving the cohousing space — not just because he can afford to, but because his work has kept him from joining house events, like the regular potluck dinners. “I sometimes feel like a bad roommate, because part of being here is participating,” he said. “I feel like there might be someone who would enjoy the community aspect more than I’m capable of contributing right now.”

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He sounds almost wistful in discussing his former economizing. If it weren’t for the dating issue, he said, he would not need the higher income or lifestyle upgrades. “I never really felt like I was compromising on what I wanted to do,” he said.

He paused. “It’s just that what I was comfortable with has changed a little bit.”

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