Lazy Caturday Reads: Trump is in Serious Trouble This Time.

Happy Caturday!!

Yesterday was truly a momentous day in the Trump saga. Trump has been hit a damaging blow to his identity as a successful businessman.

Judge Arthur Engoron ordered him to pay $355 million dollars penalty for defrauding banks, insurance companies, and taxpayers. In addition, he will have to pay 9 percent interest on the disgorgement. Nearly $100 million in interest is already owed and the interest will continue to accrue as long as he hasn’t paid up.

On top of the financial judgement, Trump will not be able to do business in New York, including borrowing from banks, for 3 years.

Jonah E. Bromwich and Ben Protess at The New York Times: Trump Fraud Trial Penalty Will Exceed $450 Million.

A New York judge on Friday handed Donald J. Trump a crushing defeat in his civil fraud case, finding the former president liable for conspiring to manipulate his net worth and ordering him to pay a penalty of nearly $355 million plus interest that could wipe out his entire stockpile of cash.

The decision by Justice Arthur F. Engoron caps a chaotic, yearslong case in which New York’s attorney general put Mr. Trump’s fantastical claims of wealth on trial. With no jury, the power was in Justice Engoron’s hands alone, and he came down hard: The judge delivered a sweeping array of punishments that threatens the former president’s business empire as he simultaneously contends with four criminal prosecutions and seeks to regain the White House.

Justice Engoron barred Mr. Trump for three years from serving in top roles at any New York company, including portions of his own Trump Organization. He also imposed a two-year ban on the former president’s adult sons and ordered that they pay more than $4 million each. One of them, Eric Trump, is the company’s de facto chief executive, and the ruling throws into doubt whether any member of the family can run the business in the near term.

The judge also ordered that they pay substantial interest, pushing the penalty for the former president to $450 million, according to the attorney general, Letitia James.

In his unconventional style, Justice Engoron criticized Mr. Trump and the other defendants for refusing to admit wrongdoing for years. “Their complete lack of contrition and remorse borders on pathological,” he said.

He noted that Mr. Trump had not committed violent crimes and also conceded that “Donald Trump is not Bernard Madoff.” Still, he wrote, “defendants are incapable of admitting the error of their ways.”

Mr. Trump will appeal the financial penalty but will have to either come up with the money or secure a bond within 30 days. The ruling will not render him bankrupt, because most of his wealth is in real estate, which altogether is worth far more than the penalty.

Mr. Trump will also ask an appeals court to halt the restrictions on him and his sons from running the company while it considers the case. In a news conference from his Palm Beach, Fla., home, Mar-a-Lago, on Friday evening, he attacked Ms. James and Justice Engoron, calling them both “corrupt.”

The bond he has to post would be greater than the total judgment plus the interest. The same requirement holds if Trump wants to appeal the $18.3 million judgment in the E. Jean Carroll case.

Trump will also be under the thumb of Barbara Jones, the independent monitor the judge appointed to oversea the Trump Organization’s business. He will have get her permission for any large transfers of money.

But there might be little Mr. Trump can do to thwart one of the judge’s most consequential punishments: extending for three years the appointment of an independent monitor who is the court’s eyes and ears at the Trump Organization. Justice Engoron also strengthened the monitor’s authority to watch for fraud and second-guess transactions that look suspicious.

Mr. Trump’s lawyers have railed against the monitor, Barbara Jones, saying that her work had already cost the business more than $2.5 million; the decision to extend her oversight of the privately held company could enrage the Trumps, who see her presence as an irritant and an insult.

Mark Joseph Stern and Alexander Sammon at Slate: Trump and His Family Are Fined $355 Million for Fraud—and a Lack of Remorse That “Borders on Pathological.” The ruling, if upheld, marks the end of the Trump Organization as we know it.

New York Supreme Court Justice Arthur Engoron ordered Donald Trump to pay $355 million in fines for business fraud in an excoriating decision on Friday that also imposes major penalties on the former president’s family and business associates. Both Eric Trump and Donald Trump Jr. are each liable for $4 million, while former CFO Allen Weisselberg is on the hook for $1 million.

The ruling, if upheld, marks the end of the Trump Organization as we know it: Engoron barred Trump from serving as an officer in any New York corporation or legal entity for three years, and prohibited him from applying for loans from any financial entity in the state. The judge has effectively hobbled the entire Trump corporate empire….

During trial, members of the Trump family took the stand to defend their father’s business dealings, with little success; Engoron declined to credit their testimony in his Friday opinion, noting that Eric Trump actually reversed himself on the stand after evidence emerged that he had lied under oath. Trump himself took the stand, as well, assuming a combative and antagonistic pose toward the judge, whom he publicly derided as a partisan hack. The former president, Engoron wrote in his Friday opinion, “rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial. His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility.”

This theme of mendacity and impenitence ran throughout Engoron’s ruling. In a remarkable passage, he wrote that the Trump family’s “complete lack of contrition and remorse borders on pathological. They are accused only of inflating asset values to make more money. The documents prove this over and over again. … Defendants are incapable of admitting the error of their ways. Instead, they adopt a ‘See no evil, hear no evil, speak no evil’ posture that the evidence belies.” This refusal to admit to their unlawful misdeeds persuaded Engoron that they “will engage in [fraud] going forward unless judicially restrained.” He therefore affirmed his earlier decision to have an independent monitor, the retired judge Barbara Jones, oversee the business’s finances and assets.

The $355 million penalty is, to put it mildly, substantial, and not the first time this year Trump has been ordered by a court to cut a check with two commas and at least seven zeroes on it. Just last month he was ordered to pay out over $83 million after losing the defamation case brought by the writer E. Jean Carroll. That was actually the second penalty Trump was compelled to pay her: A New York jury previously found that Trump sexually assaulted and defamed Carroll, awarding her $5 million in damages.

Some quick back-of-the-envelope math here shows just how dire the self-proclaimed multibillionaire’s financial situation is getting. Reporting from late October pegged Trump’s cash holdings at $425 million. This most recent penalty from New York state, combined with the two verdicts in the Carroll cases, tally to $438 million. And actually, it’s worse than that, since Engoron stipulated that Trump is prohibited from borrowing money from any New York bank for the next three years. That ban will handicap his attempt to appeal. Moreover, New York law could force him to pay a hefty 9 percent interest rate on the judgment, which would push the original $355 million north of $450 million.

Trump will undoubtedly appeal Friday’s decision, and he is not required to post bond while he does so. However, if he fails to post bond, the state can begin collecting on the judgment in 30 days’ time. At that point, Attorney General James can seize Trump’s assets, including real property; in other words, his real estate holdings in New York, like Trump Tower, are vulnerable to seizure and potential sale.

Can Trump raise this kind of money without selling one of his properties? From Erica Orden at Politico: Can Trump pay? What if he doesn’t? Here’s what to know about Trump’s massive civil judgments.

A seven-figure verdict, an eight-figure verdict and, now, a nine-figure verdict.

Donald Trump has been hit with all three in the past nine months, with Friday’s $354 million penalty for New York business fraud by far the most massive.

He is now on the hook for over $440 million in civil judgments as he heads toward the Republican nomination — and as he prepares for one or more criminal trials this year….

Trump’s company isn’t public, and he has famously refused to disclose his tax returns, so his cash flow situation is shrouded in mystery.

Even if he has $440 million in cash on hand — and it’s far from clear that he does — paying the judgments could wipe out his accounts, since Trump himself has placed his cash reserves in the ballpark of that amount.

Trump claimed in a deposition last year that he had “substantially in excess” of $400 million in cash on hand….

But it’s unclear whether that number is accurate. That deposition, after all, was part of the very lawsuit in which a judge found that Trump has repeatedly inflated his net worth.

If he doesn’t have enough cash on hand, would he have to sell properties?

Trump would likely have to sell something, although it wouldn’t necessarily have to be property. He could sell investments or other assets.

But what if he outright refuses to pay up?

In the civil fraud case, which is in New York state court, if Trump can’t post the funds or get a bond, then the judgment would take effect immediately and a sheriff could begin seizing Trump’s assets.

The rules are slightly different in federal court, which is the venue for the $83.3 million judgment that Trump owes for defaming the writer E. Jean Carroll after she accused him of raping her. (He also owes Carroll an additional $5 million from a separate verdict last year.) Carroll could pursue post-judgment discovery under the jurisdiction of the judge who oversaw the trial. Through that process, the judge could order Trump to produce his bank account records, place liens or garnish his wages.

“I think he’s going to have to pay. And whether it requires him to sell or to put a lien on something to get a loan, that’s his problem, not ours. He’s going to pay,” Carroll’s attorney Roberta Kaplan said on CNN last month.

The judge, Kaplan added, will use “judgment enforcement mechanisms” to “make sure that he pays.”

If Trump truly can’t afford the judgments, he would have to declare bankruptcy.

He also can’t postpone payments while he appeals. He would have to post bond of 120-125 percent of the total owed first. In other words, Trump is totally screwed. The only thing that could help him is that he can use PAC money to pay. But can his MAGA morons afford that much?

What does this financial disaster mean for Americans? After all, Trump is running for the Republican presidential nomination. Abdallah Fayed at Vox: Trump is suddenly in need of a lot of cash. That’s everyone’s problem.

Two recent verdicts have now left Donald Trump on the hook for nearly half a billion dollars….

For a well-connected billionaire, that might usually amount to nothing more than a temporary inconvenience; after all, Trump could always liquidate some of his assets or borrow even more money to cover his short-term obligations.

But Trump isn’t just one of the country’s richest men, with an estimated net worth in the low billions; he’s also running to serve a second term as president of the United States. And for any candidate for public office — let alone the presidency — being cash-strapped while owing such significant amounts of money could be a serious liability.

“It’s pretty scary from an ethics perspective,” said Virginia Canter, the chief ethics counsel at the Citizens for Responsibility and Ethics in Washington, a nonpartisan watchdog group that has chronicled Trump’s abuses of power and filed lawsuits against him.

You don’t have to look far to find the reasons why. Trump’s first term was riddled with conflicts of interest, and that’s in no small part because of his financial well-being (or lack thereof, depending on how you look at it). At the time that he tried to overturn the 2020 election, he was hundreds of millions of dollars in debt, largely stemming from loans to help rehabilitate his struggling businesses, and most of which would be coming due over the subsequent four years. Throughout his presidency, he refused to divest from his businesses, which made millions of dollars in revenue from taxpayers and continued to do work with other countries while he was in office — a practice he indicated he would repeat in a second term.

The fact that he has so many entanglements with big businesses and other nations leaves plenty of room for things to go awry. That’s why a 2020 New York Times exposé uncovering his staggering debt during his first term wasn’t just embarrassing for Trump, who has a tendency to claim he’s richer than he actually is. It also raised fears about how his debt could implicate national security.

As the former head of the Justice Department’s National Security Division told Time magazine in 2020, “For a person with access to U.S. classified information to be in massive financial debt is a counterintelligence risk because the debt-holder tends to have leverage over the person, and the leverage may be used to encourage actions, such as disclosure of information or influencing policy, that compromise U.S. national security.”

Read the rest at Vox.

Finally, if you’d like a deep dive on Trump and how he took the vast fortune his father left him and fucked up so badly, there’s a fascinating article at The Guardian by Sidney Blumenthal: Trump’s hubris has brought about the downfall of his family’s business empire.

More stories to check out today:

The New York Times: Trump Allies Plan New Sweeping Abortion Restrictions.

The Washington Post: Trump’s anger at courts, frayed alliances could upend approach to judicial issues.

Politico: ‘I Have to Say Goodbye. But I Don’t Want to Go to Jail.’ One of Navalny’s closest friends mourns his death, and Russia’s future.

Press Release from DOJ: Justice Department Transfers Approximately $500,000 in Forfeited Russian Funds to Estonia for Benefit of Ukraine.

Politico: Biden, lawmakers hammer Ukraine aid holdouts after Navalny death.

The Hill: GOP House chair: Johnson has no way out of Ukraine floor vote.

Los Angeles Times: Opinion: I’m an American doctor who went to Gaza. What I saw wasn’t war — it was annihilation, by Ifran Galaria

The Milwaukee Journal: Wisconsin fake elector tells ‘60 Minutes’ he was afraid of Trump supporters.

What do you think about all this? What other stories have captured your interest?