CBS News
Trump $354 million fraud verdict includes New York business ban for 3 years. Here’s what to know.
A judge’s ruling on Friday in Donald Trump’s civil fraud trial deals a severe blow to the former president, who is now barred from running the New York-based company that for decades has served as the hub of his global business empire.
In a 92-page decision, New York Supreme Court Justice Arthur Engoron barred Trump from serving as an officer or director of any corporation or other legal entity in the state for three years, while his sons, Eric Trump and Donald Trump Jr., were banned for two years, according to the ruling.
Trump and The Trump Organization were also ordered to pay penalties of $354 million in what is one of the stiffest corporate sanctions in New York history.
Engoron ruled last fall that Trump and his company, the Trump Organization, “repeatedly” violated state fraud law by systemically misrepresenting the value of some of his properties and his overall net worth. That enabled his business to obtain loan rates and other financial terms that they otherwise wouldn’t have received, New York Attorney General Letitia James had claimed in filing suit against Trump.
More specifically, James’ allegations included falsifying business records, issuing false financial statements and insurance fraud. James’ office claimed that Trump’s misrepresentations led to the company collecting $370 million in “ill-gotten gains.”
Friday’s ruling also appoints Judge Barbara Jones to continue in her role as an independent monitor of Trump’s businesses for at least three years. It orders the addition of an independent director of compliance at the Trump Organization, with Engoron ruling that this person will be responsible for “ensuring good financial and accounting practices.”
“[T]he more evidence there is of defendants’ ongoing propensity to engage in fraud, the more need there is for the Court to impose stricter injunctive relief,” Engoron wrote in his verdict. “This is not defendants’ first rodeo.”
Trump is expected to appeal.
The decision comes just weeks after a federal jury ruled that Trump must pay $83.3 million in damages for defamatory statements he made denying that he sexually assaulted the writer E. Jean Carroll. Trump is also facing numerous additional legal cases.
“These bills are really racking up for Trump,” said CBS News legal analyst Katrina Kaufman shortly before the verdict was announced. James “asked for a lifetime ban on Trump in New York’s real estate industry, which is huge for him. This is where he started as a businessman.”
Trump and his legal team had long expected a defeat, with the former president decrying the case as “rigged” and a “sham” and his lawyers laying the groundwork for an appeal before the judgment was even issued.
In 2023, Engoron found that Trump and his company overstated the valuations of many properties by hundreds of millions. The judge cited the Palm Beach, Florida, real estate assessor’s valuation of his Mar-a-Lago club at as low as $18 million — an amount on which Trump paid local property taxes. At the same time, Trump valued the property at as much as $714 million on his annual statements of financial conditions.
Separately, Trump also faces charges in four criminal proceedings. The first trial, which centers on a payment to adult film star Stormy Daniels in 2016, is scheduled to begin in Manhattan on March 25. He has pleaded not guilty in all four cases.
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CBS News
$100 million in federal funds released for North Carolina to rebuild roads, bridges damaged by Helene
Washington, D.C. – The U.S. Department of Transportation released $100 million in emergency funds on Saturday for North Carolina to rebuild its roads and bridges damaged by Helene.
“We are providing this initial round of funding so there’s no delay getting roads repaired and reopened, and re-establishing critical routes,” said U.S. Transportation Secretary Pete Buttigieg in a statement. “The Biden-Harris administration will be with North Carolina every step of the way, and today’s emergency funding to help get transportation networks back up and running safely will be followed by additional federal resources.”
The storm caused rampant flooding that has devastated several towns and killed more than 225 people – with CBS News confirming at least 114 people killed in North Carolina. There was more than 8 inches of rain across the western North Carolina mountains, with some areas seeing more than a foot.
Hundreds of roads across Western North Carolina remain closed, leading to an increase in air traffic as teams scour the region for survivors by air. Air traffic over Western North Carolina has increased by 300% due to relief efforts since the storm cleared, the Federal Aviation Administration and the North Carolina Department of Transportation.
Mudslides blocked Interstate 40 and other highways in North Carolina and about 400 roads were closed due to damage from Helene. Interstate 40 was damaged at several locations, the Department of Transportation said.
President Biden visited the Carolinas on Wednesday, surveying the flood damage by air from Greenville, South Carolina, to Asheville, North Carolina. Mr. Biden announced the federal government would cover “100%” of all debris removal and emergency protective measure costs in North Carolina for six months.
The Department of Transportation said these relief funds will allow the North Carolina Department of Transportation to act more quickly to fund eligible repairs to their damaged facilities.
Li Cohen and
contributed to this report.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
