Donald J. Trump lost his civil fraud trial on Friday, as a judge found him liable for violating state laws and penalized him nearly $355 million plus interest. In total, Mr. Trump is expected to have to pay more than $450 million.
The judge, Arthur F. Engoron, did not stop there. Along with other punishments, he also barred the former president from leading any company in the state, including portions of Mr. Trump’s family business, for three years. In doing so, he granted requests from the New York attorney general, who brought the case, accusing Mr. Trump of violating state laws by inflating his net worth in documents submitted to lenders.
Mr. Trump will appeal, and the case could take months if not years to resolve.
But Justice Engoron’s decision could inflict immediate pain, threatening the former president’s finances and his influence over the Trump family business, known as the Trump Organization. The threat is not existential — the judge did not dissolve the company, and Mr. Trump is not at risk of bankruptcy — but the decision dealt him a serious financial blow, along with a symbolic swipe at his billionaire image.
The attorney general, Letitia James, said in a news conference Friday evening that “when the powerful break the law and take more than their fair share, there are fewer resources available for working people, small businesses and families.”
She added: “There cannot be different rules for different people in this country, and former presidents are no exception.”
Here’s what we know about how the ruling affects Mr. Trump and his empire:
How will he pay the $450 million?
Mr. Trump has 30 days to come up with the money or secure a bond.
A company providing a bond will essentially assure the State of New York that Mr. Trump has the money to pay the judgments. The bond will prevent authorities from collecting while his appeals are heard.
However, Mr. Trump must find a company willing to write the bond as he faces a wide range of legal problems, including a separate $83.3 million judgment in a recent defamation case. A bonding company will charge a premium and could demand that Mr. Trump pledge cash and other liquid assets as collateral.
In recent years, Mr. Trump has amassed a stockpile of cash, but the judge’s ruling puts that at risk. Between the defamation case judgment and the $450 million he owes after Justice Engoron’s ruling, Mr. Trump might run out of cash.
That does not mean he will run out of money. He can sell one of his properties or seek a new mortgage to raise cash.
How did the judge calculate the penalty?
Ms. James sued Mr. Trump using a powerful law that allows her to recover funds that she says were obtained through fraud.
In court papers, Ms. James cited one of her expert witnesses from the trial, who calculated that amount as about $370 million, plus interest. She argued that Mr. Trump and the other defendants had not provided a specific response to the expert’s calculations.
The judge agreed, penalizing Mr. Trump for his profit on the recent sale of two properties, as well as the interest he saved by receiving favorable loans.
What is the immediate effect on the Trump Organization?
Mr. Trump’s business could reel.
The judge barred Mr. Trump from serving as an officer or director of a New York company for three years, and his adult sons for two. One of them, Eric Trump, is the Trump Organization’s de facto chief executive, and the ruling places the leadership of the business in uncertain territory.
Justice Engoron also prohibited Mr. Trump and his company from applying for loans with banks registered in New York for three years.
And he strengthened the hand of Barbara Jones, an independent monitor he has assigned to oversee the Trump Organization, extending her appointment for three years with new authority. She has been a thorn in the side of the company and Mr. Trump’s lawyers have railed against her, saying that her work has already cost them more than $2.5 million.
The judge asked Ms. Jones to appoint an independent director of compliance as her eyes and ears, reporting to her from within the company’s ranks.
What happened to Trump’s sons?
During closing arguments last month, Justice Engoron made a comment that suggested he might spare Mr. Trump’s adult sons.
“What evidence do you have — and I just haven’t seen it — that they knew that there was fraud?” the judge asked then.
Apparently, at some point in the past few weeks he saw it. On Friday, he found that they had violated several laws while conspiring to overvalue their assets.
He wrote in his ruling that there was “sufficient evidence” that Donald Trump Jr. and Eric Trump had intentionally falsified business records, noting that Eric Trump provided the company’s former controller “with knowingly false and inflated valuations” for one property.
Each is on the hook for about $4 million.
What comes next?
As punishing as the judge’s ruling on Friday may have been, it was just a prelude.
On Thursday, a judge scheduled the first of Mr. Trump’s criminal trials for March 25. The Manhattan district attorney’s office has charged Mr. Trump with 34 felonies, accusing him of covering up a sex scandal that could have hurt his chances in the 2016 presidential election.
If convicted, the former president could be sentenced to up to four years in prison. And because the case was brought by state prosecutors, Mr. Trump could not pardon himself if he were to be re-elected.
Claire Fahy contributed reporting.
