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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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Trump’s Immigration Crackdown Pervades Long Island Suburbs

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Trump’s Immigration Crackdown Pervades Long Island Suburbs

The sun poked above the horizon one bright March morning in the sprawling suburbs of Long Island. A fleet of federal vehicles began their daily search for immigrants.

They were followed, as usual, by Osman Canales, the roving neighborhood watch leader who has 100,000 Facebook followers and an entourage of secret lookouts. With one hand on the wheel of his black Jeep Grand Cherokee and another gripping a bullhorn, he telegraphed a warning:

“ICE is here!” Mr. Canales shouted in Spanish. “Stay home!”

President Trump’s immigration crackdown has played out most graphically in big cities run by Democrats, where aggressive tactics by federal agents have dominated headlines and fanned partisan debate. But in those cities, immigrant arrest rates have been erratic, spiking and plummeting.

The rhythm of detentions has been more steady in car-dependent places like Long Island, where agents have the advantage of stealth and where immigrants live far from the eye of news cameras. Just east of New York City’s jampacked boroughs, the arrest rates since last August have been consistently higher than in the city and the Hudson Valley.

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The detention rate on Long Island has been about 60 percent higher than in the city and Hudson Valley since Mr. Trump took office. The rate remains slightly lower than in the rest of the country.

The expansive roads of Long Island have been fertile terrain for agents to capture migrants without the scrutiny that has often accompanied officials’ actions in big cities. Residents must drive for miles to get to work or to go grocery shopping, allowing officers to detain them during traffic stops beyond the critical eye of observers.

“It’s harder to say something when you’re in your car driving in a suburban area,” said Serena Martin, an immigration advocate and the executive director of New Hour for Women and Children, an organization that helps mothers, women and children whose lives have been affected by incarceration. “It’s not that people care any less. We just aren’t on the street walking in the way that people in urban areas have the ability to do to quickly mobilize, to take the photos, to take the video.”

On Long Island, Immigration and Customs Enforcement agents arrested about 12 people a day in early March, compared with about one a day in 2024. Nationwide, ICE agents were making more than 1,000 arrests per day in early March, compared with about 300 a day in 2024.

Deep-blue cities such as Chicago, Minneapolis and New York have vowed not to work with ICE, and protesters there have foiled large immigration operations by leaping quickly into action in substantial numbers. Federal agents in Manhattan have sometimes struggled to carry out arrests. Activists have chased them during a street raid, barricaded a garage where they were parked and staged a protest at a hotel where they were staying.

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The pace of immigration arrests in the New York City area has remained at an elevated level since last summer — a contrast to the operations in Chicago and Minneapolis, where arrests skyrocketed for a month or two and then calmed down.

Arrests in Illinois fell from about 70 a day in October 2025 to about 10 a day at the beginning of March. In Minnesota, they fell from more than 80 a day in January to just about three a day. At the same time, arrests in the New York City area went from about 30 a day in January to about 28 a day in early March.

The Department of Homeland Security declined to discuss operations, but officials suggested that cities choosing to cooperate with ICE have less crime.

“Partnerships with law enforcement are critical to having the resources we need to arrest criminal illegal aliens across the country,” D.H.S. said in a statement. “We have had tremendous success when local law enforcement work with us.”

In Nassau County, the Long Island county closer to New York City, federal agents are aided by a partnership between local police and the Trump administration that empowers law enforcement officers to assist in enforcing immigration laws and transfer people into ICE custody. The agreement is known as Section 287(g) of the U.S. Immigration and Nationality Act. And Nassau County isn’t alone.

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A growing number of 287(g) agreements have been adopted across the country since Mr. Trump returned to office. In January 2025, 133 state and local agencies had agreements, according to a study by the American Civil Liberties Union. Since then, ICE has announced agreements with at least 1,000 agencies.

Bruce Blakeman, the Nassau County executive who is the Republican nominee for New York governor and an ally of Mr. Trump’s, has vowed to fight a proposal by Gov. Kathy Hochul, a Democrat, to ban officers from working with ICE through 287(g) agreements. Mr. Blakeman has passed several policies to help federal agents, including the deployment of local detectives to assist with deportations.

“Because of the county’s cooperation with ICE, we have removed over 2,000 illegal migrants with criminal records ranging from attempted murder, to rape, to car jacking and drug dealing,” said Chris Boyle, a spokesman for Mr. Blakeman. “It is a safer county.”

ICE agents have turned Nassau County’s fire stations into rest stops, pulling into parking lots to take a break from patrolling. Sandra Valencia, who runs a youth leadership program on Long Island through Rural & Migrant Ministry, an advocacy group, said that agents park outside schools after classes are released, frightening parents.

“Children of Republican parents have intimidated our kids,” Ms. Valencia said in Spanish. “They showed up to school with American flags.”

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Latinos on Long Island have accused ICE of discrimination. In a lawsuit filed April 8, five residents of Latino descent said that agents unlawfully stopped and arrested them based solely on their race and ethnicity, with no regard for their immigration status, in violation of federal laws and regulations. The agency did not respond to an inquiry about the litigation.

Long Islanders have made plans in the event of their own arrest, asking family members to take care of relatives or property left behind. One woman who is living in the country illegally and spoke on the condition of anonymity because she feared reprisal said that in June, she decided to pack a bag with blankets, mittens, hats and a sleep sack for her 1-year-old baby in case they wound up in a frigid detention center.

Teenagers said they have felt shocked to see families unravel around them. Some said they worried that losing a parent or a sibling would risk their academic pursuits or deplete their family’s income.

Fernanda Mejia, 16, is the daughter of a bagel store worker who was detained in June while agents were searching for another person. In a tearful plea to the Republican-controlled Nassau County Legislature in July, she said that she was heartbroken to lose her father and urged the governing body to stop helping ICE arrest migrants like him. She said her father had no history of criminal behavior, and The New York Times found no evidence of a criminal background.

“My name is Fernanda Mejia,” she said, her voice trembling as she approached the lectern while wearing a ruffled skirt and a pink bow in her hair. “My dad was taken by ICE.”

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Howard J. Kopel, the presiding officer, cut her off, drawing protests from audience members who demanded to hear more. When Fernanda finished speaking, Mr. Kopel was terse.

“I wish you good luck,” Mr. Kopel said. “I hope it works out. All right, next.”

Mr. Kopel declined an interview request through a spokeswoman.

Fernanda’s father had been deported to El Salvador. In her messy bedroom, piled with stuffed animals, makeup brushes and Polaroids, she keeps the gifts he sent from detention — a bracelet that he spooled together with broken rosaries and a necklace made out of beads shaped from bread.

Many adults around Fernanda barely go outside. Some depend on Facebook posts from Mr. Canales, the neighborhood watch leader.

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On that bright March morning, Mr. Canales drove for hours before he found out agents had quietly arrested someone. He stopped for lunch at a Mexican restaurant, where the owner thanked him with a free torta and lamented a lack of customers.

Defeated, Mr. Canales finished eating, climbed back into his Jeep and braced for the next day.

Sheelagh McNeill contributed research.

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N.Y.P.D. Narcotics Unit Under Review After a Beating Is Caught on Tape

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N.Y.P.D. Narcotics Unit Under Review After a Beating Is Caught on Tape

The New York Police Department said on Tuesday that it was launching a three-month review of its narcotics division after two of its detectives were recorded brutally beating a man they had mistakenly arrested during a drug sweep last week.

As part of the review, the Police Department said it had disbanded the team responsible for the drug sweep, a small group within its narcotics unit in Brooklyn. That team was shut down on Friday, and its members have all been reassigned or placed on desk duty, the department said.

The overhaul of the division was announced a week after videos showing two narcotics detectives punching, kicking and dragging a man across the floor of a Brooklyn liquor store spread online.

The videos show the two detectives beating the man, a security guard named Timothy Brown, as they struggle to wrestle him into handcuffs for nearly eight minutes. The department said the arrest had been part of an undercover operation in the area and that the detectives had believed Mr. Brown to be involved in a drug deal. After beating and arresting Mr. Brown, the police determined that they had targeted the wrong man and that Mr. Brown had not been involved in the drug sale.

The police charged Mr. Brown with resisting arrest and obstructing governmental administration, but the Brooklyn District attorney’s office said it would decline to prosecute the case.

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The footage, and news of the mistaken arrest, prompted immediate backlash from New York lawmakers, civil libertarians and police critics, some of whom described the behavior as extrajudicial punishment. Mayor Zohran Mamdani, who has been careful not to anger the city’s police force, last week condemned the conduct in his strongest words of criticism since taking office. “The violence used by N.Y.P.D. officers in this video is extremely disturbing and unacceptable,” Mr. Mamdani wrote in a post on social media on Wednesday.

The Police Department moved quickly to discipline the two men in the video, Volkan Maden and Michael P. Algerio, both of whom have served with the N.Y.P.D. for more than a decade. On Wednesday, Police Commissioner Jessica Tisch called the videos “deeply disturbing” and said that both detectives had been placed under investigation and stripped of their guns and shields.

In the following days, the department removed the sergeant who oversaw Detectives Maden and Algerio from his post and placed him on modified duty. By Friday, six more detectives on the team, as well as the lieutenant and captain who oversaw the entire North Brooklyn narcotics operation, had all been reassigned.

In interviews last week, several lawmakers praised Ms. Tisch and Mr. Mamdani for taking swift disciplinary action against what they called a shocking display of police brutality.

“This video looked like something from the 1990s,” Oswald Feliz, the chair of the City Council’s Public Safety committee, said. “This had nothing to do with public safety, it had everything to do with violence and that is violence that we will not and cannot accept.”

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But for some, the behavior of the two veteran detectives raised concerns about how the unit and department was functioning.

Some critics have pointed out that Detectives Maden and Algerio appear to use cellphones, rather than police radios, to call for backup. Others noted that neither appeared to be wearing, or using, body cameras during the arrest.

Lincoln Restler, a city councilman who used to represent the Brooklyn district where the mistaken arrest happened, said the episode had concerned him enough to refer it to the city’s Department of Investigation. In his referral, Mr. Restler requested that the agency examine the Police Department’s communication practices for instances of unauthorized text and phone communication, according to a copy of the email obtained by The New York Times.

In the city’s policing community, reactions to the video have been more mixed. Union leaders and several former officers have chafed at the mayor’s response, defending the behavior of the two detectives and saying that Mr. Brown had no right to resist arrest. (It is not clear from the video whether Mr. Brown was in fact resisting arrest or if he was unable to comply while being beaten.)

“This is what happens when City Hall rushes to judge based on a viral clip instead of facts,” the detective union’s president, Scott Munro, said in a statement last week. “It’s reckless. It’s dangerous. And it’s a failure of leadership.”

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The Police Department said on Tuesday that the 90-day review will aim to address and reform the kind of policy violations raised by Mr. Restler and others. It added that both detectives were being investigated by the department’s Internal Affairs Bureau, which looks into reports of police misconduct.

The review will be led by the chief of department, Michael J. LiPetri, and will examine the policies of the entire narcotics division to make sure that its officers are enforcing their duties “safely and effectively,” the department said.

As part of the process, the department will review the current training that narcotics detectives receive and will ensure that all officers in the unit use “appropriate equipment.” The department also said it would clarify its current policy to require detectives to use body cameras during drug operations.

The department also said it will require commanding officers to regularly check in on the narcotics unit to ensure that it is meeting departmental standards for professional conduct during its operations.

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Harvey Weinstein’s Third Trial on Rape Charge Opens in Manhattan

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Harvey Weinstein’s Third Trial on Rape Charge Opens in Manhattan

She testified last year that she first met the former producer when she was about 27, after moving to Los Angeles to pursue a career in acting. He pressured her into giving him a massage shortly after, she said.

In 2013, she was visiting New York and had planned a morning meal with friends and the producer. He arrived early and got a hotel room over her objections, Ms. Mann testified. Still, she went with him to the room, where he injected his penis with medication that produced an erection and then raped her, she said.

She tried to fight, she said, but eventually “I just gave up, I wanted to get out.”

In the years that followed, Ms. Mann said, she fell into a complex relationship with Mr. Weinstein, which included friendly email exchanges, phone calls and several consensual sexual encounters. In her testimony last year, she called it a “dance” in which she tried to keep him both happy and at a distance. At one point, Ms. Mann said, she decided to enter a romantic relationship with him.

During cross-examination, a lawyer for Mr. Weinstein questioned Ms. Mann about money — close to $500,000 — that she had received as settlement payments through a fund established as part of the bankruptcy of Mr. Weinstein’s company.

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“This is not about money for me,” Ms. Mann testified.

For this trial, Mr. Weinstein has hired a new trial team of Jacob Kaplan, Marc Agnifilo and Teny Geragos.

The lawyers have already signaled that their defense will differ, at least slightly. They have indicated that they will not argue that Ms. Mann made the accusations against their client for financial gain.

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