New York
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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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.
20
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.
new video loaded: Protesters Clash with Federal Agents Outside ICE Detention Center in New Jersey
transcript
transcript
Protesters Clash with Federal Agents Outside ICE Detention Center in New Jersey
Protesters and immigration agents clashed outside Delaney Hall detention center in Newark, where activists have gathered for days to denounce conditions inside.
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“Get back!” “Get back, get back, get back, get back, get back!” [chanting] “ICE, ICE has got to go. Hey, hey, ho, ho.” “We’ve heard repeatedly about these horror stories of pregnant women not getting access to care, of people with injuries not being treated. People shouldn’t have to starve themselves to make their dignity known.” “Down, down with the degradation.” “Down, down with the degradation.”
By Christina Kelso
May 28, 2026
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?
Ellen Hagan grew up in a small town in Kentucky, and moved to New York City as quickly as she could after she graduated from college. She arrived a few weeks before Sept. 11, and tried to get her bearings in a city turned upside down.
She found a group of fellow young artists and writers who wanted to take advantage of everything they could in the city, on very limited budgets. They went to poetry readings and dance parties, and rented tiny apartments in the East Village.
All the while, Ms. Hagan was diligent about saving money, even when she had very little of it.
“I didn’t know what I was saving for, but I knew I wasn’t going to have a job that would give me a pension,” she said. “I wanted to make enough money to live the New York existence I was dreaming of.”
Twenty-five years later, Ms. Hagan and her husband, David Flores, whom she started dating in her early years in New York, have much more money than they used to. Still, they feel more anxious about money than they hoped they would at this point in their lives.
The couple both work at DreamYard, a Bronx arts nonprofit. Last year, they made $178,135 there collectively, with Ms. Hagan, 47, directing the poetry and theater programs, and Mr. Flores, also 47, serving as the head of visual art and design.
They typically bring in another $40,000 to $60,000 a year through their freelance work. Mr. Flores is an adjunct professor, a photographer and a filmmaker, and Ms. Hagan teaches at a graduate writing program and writes books and poetry. They try to set aside about 15 percent of their income each year to grow their savings.
The couple live in Washington Heights in Upper Manhattan with their two daughters, who are 12 and 15.
Homeownership Doesn’t Solve Everything
As a young couple, Ms. Hagan and Mr. Flores lived in a 400-square-foot East Village rental. When their rent started to tick up, Ms. Hagan began looking for a place to buy, seeing homeownership as a buoy that would all but guarantee a secure financial life in New York.
Sixteen years ago, the couple found a perfect apartment in Washington Heights and scrambled to cobble together a down payment. They pooled their savings to put a 15 percent down payment on the $335,000 home. Once they closed, they were left with only a few hundred dollars in savings, but were thrilled and relieved.
“I had this sense that when you buy, you’re set in New York City,” Ms. Hagan said.
The reality, she has found, is more complicated.
The couple’s mortgage payment is $1,300 a month, and their maintenance fees keep rising, partially as a result of a new local law that requires increased inspections and repairs for buildings. Local Law 11 boosted their maintenance by $462 a month, at least temporarily, to about $1,900 total. And when the building’s management installed a new security system, each unit had to chip in $95 a month for three months.
Ms. Hagan loves the apartment, but she worries that they may eventually be priced out of their neighborhood.
“This building isn’t going to be for us at some point,” she said. “This feels like, uh oh, they’re imagining people who have much higher incomes than we do.”
Keeping the Kids Busy
Ms. Hagan and Mr. Flores, who each maintain packed calendars, have encouraged their daughters to adopt the same approach to city living.
“I’m definitely a proponent of, let’s fill your schedule and see what you love,” Ms. Hagan said.
The girls’ public school offers free debate and band classes before and after school, and they’ll appear this spring in the school’s productions of “Annie” and “The Addams Family.”
The girls are also enrolled in a free theater academy at the People’s Theatre and writing workshops at Uptown Stories, which has a pay-what-you-can system. Ms. Hagan and Mr. Flores typically pay the full tuition, which is $800 for each 12-week session, and donate about $2,500 a year to the organizations their daughters are part of.
The couple’s older daughter, Araceli, who wants to be both a writer and a doctor, is enrolled in a medical training program for middle and high school students. She made $2,500 for completing an internship at a cardiothoracic intensive care unit last summer.
Their younger daughter, Miriam, is going to a Y.M.C.A. camp this summer, which costs $2,600 for two weeks.
Ms. Hagan and Mr. Flores spent about $500 total on holiday gifts for both girls, and the couple doles out their daughters’ weekly allowances in two installments: $25 on Mondays and $25 on Fridays.
They shook their heads when Miriam, who is known as the most stylish member of the family, came home one day wearing a Dr Pepper T-shirt she’d bought at Target.
“We were like, ‘What are you doing with your money?’” Ms. Hagan said.
The Fun Stuff
The extra income from the couple’s freelance work allows the family to splurge on theater, vacations, books and memberships at the Museum of Modern Art and the Whitney Museum of American Art.
Sometimes, Ms. Hagan and Mr. Flores work together. A few years ago, they sold a young adult novel called “Tell Me Every Lie” they had co-written for a $35,000 advance, some of which went to their agent.
Every little bit helps. The family is spending a weekend on Long Beach Island in New Jersey this summer, which will cost about $3,500. That price tag includes a hotel room big enough for four.
The family typically travels twice a year to Kentucky, where both Ms. Hagan and Mr. Flores are from, and where the couple co-owns a home in Louisville with Mr. Flores’s parents. They put $40,000 down and spend about $12,000 annually on expenses related to the home.
The family was hoping to travel to the Philippines this year, where Mr. Flores’s father is from, but they realized it could cost as much as $15,000. The trip is now on hold indefinitely.
They spend about $700 a month on groceries from nearby supermarkets, and occasionally order grocery deliveries from FreshDirect.
Every Wednesday, when the girls come home late from theater class, someone picks up dinner at the nearby halal truck or the Dominican restaurant Malecon, which usually runs about $60.
Dinner out as a family of four can easily cost $200, so Ms. Hagan and Mr. Flores typically eat at restaurants just once or twice a month. The other night, the whole family was hungry and craved Italian food from a favorite upscale spot nearby.
They balked, and walked around the corner to a diner instead. The meal was $120, all in.
We are talking to New Yorkers about how they spend, splurge and save.
Gov. Mikie Sherrill of New Jersey, a Democrat who has clashed with the Trump administration over immigration policies, joined protests outside a detention center in Newark on Monday in support of detainees participating in a hunger strike.
Ms. Sherrill heard from family members of detainees, who have complained about rotten and spoiled food and inadequate medical care at Delaney Hall. Dozens of protesters waved signs, banged on drums, and chanted “Free Them All!” The governor told the crowd she had requested access but was denied.
“No matter what your immigration status is, you shouldn’t be treated with anything less than dignity in this country,” said Ms. Sherrill, who was dressed in a T-shirt, jeans, and blue-gray jacket on the Memorial Day holiday. At one point, she rested her hand on the shoulder of a crying relative and smoothed the hair of an upset child.
After the governor left, the scene worsened outside the detention facility. A tense standoff erupted between Immigration and Customs Enforcement agents and protesters who blocked an entrance; the agents responded by firing pepper balls and spray at the protesters. Senator Andy Kim, who was trying to de-escalate the situation, was among those affected.
On Monday, the governor and other elected officials, including Mayor Ras J. Baraka of Newark, appeared outside Delaney Hall amid growing concerns over the hunger strike, which started on Friday inside the gray, cinder-block building enclosed by a high chain link fence topped with razor wire.
Immigration advocates have rallied outside Delaney Hall since Friday. Detainees said they would go on a hunger and labor strike while calling for an investigation of the detention center and its operations and for Ms. Sherrill to visit to discuss protections from ICE. Hundreds of detainees were participating, one protester told Ms. Sherrill.
The governor said in a statement on Sunday that she had contacted ICE to gain access to the detention center and was working to monitor the situation and “do what’s necessary to ensure humane conditions.”
At Monday’s protest, some protesters shouted in Ms. Sherrill’s face to criticize her for not showing up earlier in the weekend, like other elected officials had.
Representative Rob Menendez of New Jersey had arrived at 8 p.m. on Sunday and stayed all night until he was allowed into the center on Monday morning. Mr. Menendez said that he had spoken to some of the detainees inside Delaney Hall, including a young woman who just wanted to go to her high school graduation, a pregnant woman who was trying to get medical care, and a man who showed him a carton of milk that had gone rancid.
“I heard just desperation from so many people in there,” Mr. Menendez said afterward.
Angela Martinez told Ms. Sherrill that her cousin, Bolivar Bueno, 65, has diabetes and that she hasn’t been able to speak to him to make sure he is getting medication. “We don’t know what’s going on,” she told the governor.
Afterward, Ms. Martinez said, “I want for her to help me out.”
Ms. Sherrill left after about an hour, around 11:30 a.m., as some demonstrators jeered at her. Her security had to clear the road of a couple people who tried to stop her S.U.V. from leaving.
A few hours later, a convoy of ICE vehicles approached another entrance on the south side of Delaney Hall. Protesters, who had rallied at the north entrance in the morning, ran over to sit down in front of the vehicles. Many said they feared that the detainees on hunger strike inside would be transferred to other facilities.
ICE agents — most of whom were wearing face masks — pushed and shoved the protesters out of the way, even dragging one young man by a kaffiyeh around his neck. As the protesters chanted “Trump Has To Go,” they linked arms and faced the ICE agents.
The standoff prevented anyone from leaving through the south entrance. Soon after, a military-style vehicle moved toward that entrance, with a man on top holding a firearm pointed at demonstrators.
Senator Kim, Democrat of New Jersey, who had been allowed inside Delaney Hall, came out during the confrontation and walked over to support the protesters. Soon afterward, the ICE agents and military vehicles backed away from the entrance and slightly retreated toward to the detention center, but the standoff continued.
“They provoked it, they brought that tank over,” Mr. Kim said. “It’s getting worse and worse here.”
The senator said he was working to “de-escalate” the standoff through negotiations with federal officials and would push for families to be allowed to visit detainees as early as Tuesday. “I’m going to keep at it,” he said.
Not long after, the standoff escalated with ICE agents using pepper balls and mace on the crowd.
It’s not the first time Delaney Hall has faced protests. In June 2025, four men escaped from the detention center after days of unrest over meager and sporadic meals and overcrowding that forced some detainees to sleep on the floor. Detainees had smashed windows, doors and security cameras.
And Mr. Baraka, the Newark mayor, was arrested in May 2025 during a clash with federal agents outside its gates last year.
Dakota Santiago contributed reporting.
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