Former President Donald Trump arrives at the courtroom for his civil business fraud trial at the New York Supreme Court on Wednesday, Oct. 25, 2023, in New York. (AP Photo/Yuki Iwamura)
A former federal judge monitoring a former president’s financial activity as he tries to fend off multiple lawsuits has said that more than $40 million in transfers have previously gone unreported — despite the requirement that Donald Trump’s legal team provide notice of transfers over $5 million.
Barbara Jones, a retired U.S. District Judge for the Southern District of New York, was appointed by Manhattan Supreme Court Justice Arthur Engoron — overseeing New York Attorney General Letitia James’ civil fraud case against Trump — in November 2022 to monitor certain financial information and transactions.
As Jones explains in a letter filed to Engoron on Wednesday, her responsibilities include reporting to the court transfers involving a trust in the former president’s name. Trump is required to “provide notice when entities within the Trust make transfers outside of the Trust with an aggregate value in excess of $5 million.”
A review of bank statements for 12 bank accounts from January 2023 through October 2023 revealed that some transfers had not been shared with Jones.
“Upon review of these bank statements, we observed three cash transfers exceeding $5 million each, totaling approximately $40 million,” Jones wrote. “These transactions included a cash transfer of $29 million to Donald J. Trump, which I have confirmed was used for tax payments.”
Other transfers, Jones wrote, were for “insurance premiums and to an attorney escrow account” specifically related to Trump’s legal battle with writer E. Jean Carroll, who successfully sued the former president for defamation and sexual abuse.
According to court records, Trump’s lawyers disclosed to the federal judge overseeing the Carroll case that as of June, they were holding $5.5 million in trust as Trump appealed the verdict.
“We have discussed with Defendants why these transactions were not previously disclosed and I have now clarified (and Defendants have agreed) that all transfers of assets out of the Trust exceeding $5 million must be reported,” Jones said in the letter.
The retired judge also reported that “relevant tax returns for six Trust entities were not promptly disclosed” pursuant to the instructions.
“Upon my request, Defendants provided the tax returns and acknowledged that their exclusion was an oversight,” Jones wrote.
Jones noted in her letter that Trump has apparently taken efforts to correct prior errors in reporting.
“In my previous report, dated August 3, 2023 (“August Report”), I notified the Court that certain of the Defendants’ financial disclosures provided to third parties were either incomplete or inconsistent,” wrote Jones, a Bill Clinton appointee. “I have since observed that Defendants have taken steps to disclose intercompany loans omitted from prior disclosures, modified footnote disclosures regarding contingent liabilities, and have also provided all recent annual and quarterly certifications attesting to the accuracy of various financial statements, as required by certain loan agreements.”
Jones told Engoron she believes that through the corrective measures, “Defendants have resolved the issues identified in the August Report, subject to ongoing monitoring.”
Lawyers for Trump say that Jones’ letter affirms that the former president is cooperating with Engoron’s instruction.
“As before, the report confirms the defendants continue to cooperate with the monitor and remain in compliance with the court order,” attorney Chris Kise told Law&Crime in an email. “Also, as before, the report contains no mention of suspicious activity or suspected or actual fraud because none exists.”
In September 2022, James filed a blockbuster $250 million civil fraud lawsuit against Trump, alleging tax fraud by him, his family and his companies. Trump has been harshly critical of the judge and his staff, sparking a barrage of harassment after baselessly linking Engoron’s principal law clerk to Democratic New York Sen. Chuck Schumer.
On Thursday, a New York appellate court upheld Engoron’s gag order forbidding Trump from verbally attacking the judge’s court staff.
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