Effective Thursday, former President Donald Trump’s namesake family real estate company has a babysitter.
New York Judge Arthur Engoron, who oversaw Trump’s civil fraud trial, imposed a monitor over the Trump Organization as part of a judgment that also required Trump to pay a nearly-half billion dollar penalty.
Barbara Jones, a retired federal judge, has been overseeing the Trump Organization’s finances since November 2022 as part of a preliminary injunction. She is now installed for the next three years.
As part of the arrangement, the Trump Organization must open its books to Jones, who has also been given the ability to suggest court-ordered changes in how the Trump Organization operates.
She must be notified about any large cash transfers, the creation or dissolution of assets, the restructuring of debt and “any efforts to secure surety bonds,” according to Engoron’s order issued Thursday.
Engoron in February ordered Trump to pay $464 million in disgorgement and pre-judgment interest after he found the former president and his adult sons liable for using “numerous acts of fraud and misrepresentation” to inflate his net worth in order to get more favorable loan terms. Trump has denied all wrongdoing and has appealed the decision in the case.
Republican presidential candidate former President Donald Trump speaks at a campaign rally, March 9, 2024, in Rome Ga.
Mike Stewart/AP, FILE
Trump is facing a Monday deadline to secure a bond to guarantee payment of the $464 million judgment should he lose his appeal. His lawyers have said it is “a practical impossibility,” but New York Attorney General Letitia James suggested Trump had not explored all of his options.
The imposition of a monitor could limit Trump’s ability to maneuver his money and his physical assets, as he attempts to secure the bond and pay his debts.
“Defendants shall not evade the terms of this Monitorship Order by transferring assets, reincorporating existing business entities in other forms or jurisdictions, modifying entity ownership, or any other form of restructuring or change in corporate form,” Engoron said in his order.
In a significant development in the ongoing civil fraud trial against the Trump Organization, a monitor has been appointed to oversee the company’s finances. This move comes as part of the legal proceedings initiated by the New York Attorney General’s office, which alleges that former President Donald Trump’s company engaged in fraudulent practices to inflate the value of its assets.
The appointment of a monitor is a common practice in cases involving allegations of financial misconduct, as it allows for an independent party to review and monitor the financial operations of the company in question. In this case, the monitor will be tasked with ensuring that the Trump Organization complies with any court orders related to the case, as well as overseeing its financial transactions to prevent any further fraudulent activity.
The decision to appoint a monitor in this case underscores the seriousness of the allegations against the Trump Organization and the need for independent oversight of its financial operations. It also reflects the growing scrutiny of the company’s business practices, particularly in light of the investigations into its dealings during Trump’s time in office.
The appointment of a monitor is likely to have significant implications for the Trump Organization, as it will now be subject to increased scrutiny and oversight of its financial activities. This could potentially impact the company’s ability to conduct business as usual, as it will be required to adhere to strict guidelines and reporting requirements set forth by the monitor.
Furthermore, the appointment of a monitor could also have broader implications for other companies and organizations facing similar allegations of financial misconduct. It serves as a reminder of the importance of transparency and accountability in business operations, and the potential consequences of engaging in fraudulent practices.
Overall, the appointment of a monitor to oversee the Trump Organization’s finances in the civil fraud trial is a significant development that highlights the seriousness of the allegations against the company. It underscores the need for independent oversight of financial operations in cases of alleged misconduct, and serves as a warning to other companies engaging in similar practices.
