Saturday, March 09, 2024

How a New York Judge Arrived at a Staggering 'Disgorgement' Order Against Trump

How a New York Judge Arrived at a Staggering 'Disgorgement' Order Against Trump - JACOB SULLUM
  • The law that Attorney General Letitia James used to sue the former president does not require proof that anyone was injured by his financial dishonesty.
"On Friday, New York County Supreme Court Justice Arthur Engoron ordered Donald Trump to pay a staggering $355 million for repeatedly inflating asset values in statements of financial condition submitted to lenders and insurers... 
But the law under which James sued Trump and his co-defendants does not require any such loss. 
The money demanded by Engoron's 92-page decision, which goes to the state rather than individual claimants, is styled not as damages but as "disgorgement" of "ill-gotten gains." 
It is aimed not at compensating people who were allegedly harmed by Trump's misrepresentations but at deterring dishonesty that threatens "the financial marketplace."...
In this case, however, it did not result in any injuries that Trump's lenders or insurers could identify. 
Under New York law, Engoron says, that does not matter. 
But maybe it should.

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