Posted by Julia Salomon.
This article highlights the details regarding the New York business lawsuit against former U.S President, Donald Trump. This all started when Letitia James, a New York Attorney General accused Donald Trump, his two sons, The Trump Organization, and its top employees for fraudulently inflating Trump’s assets in order to boost his net worth in addition to gaining financial benefits (Breuninger). Trump and his teams’ unethical actions have now resulted in extreme consequences that could have certainly been avoided if behaviors remained ethical. In response to the allegations, Trump’s lawyers accused the prosecutor of making these claims due to a political bias. The article further states, “Trump has frequently raged against his many legal battles as “witch hunts,” claiming they are part of a Biden administration-backed conspiracy to tank his political ambitions” (Breuninger). This claim was not enough to prove innocence as Manhattan Supreme Court Judge, Arthur Engoron found Trump’s financial statements overvaluing his assets totaling between $812 million and $2.2 billion.
As a result, Engoron fined Trump $354,868,768 in disgorgement. He also ordered Trump to pay a total of $98.6 million in prejudgment interest at an annual rate of 9%. Trump was banned from running any kind of business in New York for three years. Additionally, Eric Trump and Donald Trump Jr. were charged with paying over $4 million each and banned from leading any New York corporations or legal entities for two years. In addition, Engoron permanently banned Co-defendants and specific members of the Trump Organization from controlling the finances of any New York business (Breuninger). In total, Trump was ordered to pay about $454 million in penalties. As Trump’s company is known for having a large clientele and producing business in New York, Trump made it clear that the decision for banning his business would be a long-term mistake and made a warning that these choices would negatively impact and drive business out of New York. In the article, it was mentioned that Trump’s attorney made many statements about how there was no true crime committed. In the article it states, “…refusal to admit error” led the judge to conclude “that they will engage in it going forward unless judicially restrained” (Breuninger). It is easy to infer that not taking ownership and responsibility may have led the judge to make as many orders as he did.
Through reading this article, Letitia James made a point that stuck to me. She states, “There simply cannot be different rules for different people.” In my opinion, this quote is powerful because it highlights the importance of holding others accountable no matter if they are in the public eye or who they may be. She further states, “Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them.” I never considered that those in the public spotlight may sometimes catch a break when it comes to breaking laws and the consequences that follow. With that, I believe that for this specific case, it may have been hard to find people who were not politically motivated either in favor or against Trump throughout this entire case.
Although on a noticeably big and public sale, this article highlights the many issues and unethical practices that occur within businesses around the world. It makes me wonder how many fraudulent activities committed go unnoticed and not caught. Although this will not be the first or last time an individual in the public eye gets caught for acting unethically and breaking laws within business, hopefully this case will make others think deeply about their unjust actions prior to proceeding with them. Is it ever worth the risk of getting caught?
Julia is a dual marketing and management major at the Stillman School of Business, Seton Hall University, Class of 2026.