No, Donald Trump was not criminally prosecuted for taking out, repaying loan | Fact check
The claim: Trump was criminally prosecuted for taking out a loan and paying it back
A March 27 Facebook post (direct link, archive link) claims former President Donald Trump was charged with a crime for a mundane action.
"So when Trump takes out a loan and pays it back with interest it's a crime but when you take out a student loan and don't pay it back, then Biden forgives the loan, steals money from the taxpayers to pay it back it's not a crime," reads the post.
The post was shared more than 26,000 times in a day.
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Our rating: False
The post is wrong in two ways. The Trump case referenced in the post is civil, not criminal, which means Trump was not accused of a crime. New York's attorney general sued Trump for fraudulently inflating his wealth on financial statements used to get loans and insurance, not for taking out and repaying a loan.
Judge ruled Trump fraudulently overstated his wealth on financial docs
The post refers to a lawsuit filed against Trump in 2022 by New York Attorney General Letitia James, who claimed Trump and his company routinely exaggerated his wealth on financial statements used to secure loans and insurance. James used a decades-old state law that gives her authority to investigate allegations of fraud in business dealings, The Associated Press reported.
James' lawsuit was handled in civil – not criminal – court, meaning Trump was not accused of a crime in the case, as the post claims. The post is also wrong about the circumstances that led to the lawsuit – and later to a massive financial penalty for Trump.
Judge Arthur Engoron, who presided over the case, ruled in late September of last year that Trump and his company committed fraud for years by overvaluing assets, including some of his well-known properties, and inflating his worth on financial statements. A trial to determine what penalties Trump and his company would face began in early October of that year and lasted for more than two months. In the end, Engoron ordered Trump to pay $453.5 million in penalties and interest.
Fact check: No evidence of Trump selling 'holy oil' to fund legal bills
The financial penalties were based on "ill-gotten gains" Trump acquired by exaggerating his wealth, including money he saved from lower interest rates on loans and profits from selling properties he otherwise would not have been able to develop.
An appeals court ruled in late March that Trump and his co-defendants only have to post a $175 million bond or deposit to shield their assets as they pursue an appeal in the case.
While Trump never faced criminal charges in the New York fraud case, he does face criminal charges in several other cases.
The social media user who shared the post could not be reached for comment.
Our fact-check sources:
Associated Press, Sept. 21, 2022, ‘Art of the steal': Trump accused of vast fraud in NY suit
Associated Press, Sept. 26, 2023, Judge rules Donald Trump defrauded banks and insurers while building real estate empire
Associated Press, Feb. 17, Here’s a look inside Donald Trump’s $355 million civil fraud verdict
USA TODAY, Oct. 2, 2023, Donald Trump's real estate fraud trial begins in New York: What you missed.
USA TODAY, Feb. 16, Donald Trump hit with $453.5 million penalty in New York real estate fraud lawsuit
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This article originally appeared on USA TODAY: Trump faced civil fraud lawsuit in New York case | Fact check