Trump ‘breaks court ruling’ by moving $40m from Trump Organisation to personal bank account – report

Donald Trump has been accused of using his company’s funds to pay his tax and legal bills, in breach of a court ruling that requires him to notify a financial auditor before withdrawing cash.

The former president reportedly moved $40 million (£31.5 million) from the Trump Organisation into a personal bank account in three cash transfers across ten months of financial statements, The Daily Beast reported.

Mr Trump has been ordered to notify Barbara S Jones, a former federal judge, before withdrawing more than $5 million from his trust, in an attempt to regulate the Trump Organisation’s business practices.

Ms Jones has notified a New York State court that Mr Trump moved the money out of his businesses account to pay a $29 million tax bill and a $5 million penalty from the E Jean Carroll lawsuit.

In that case in May, Mr Trump was ordered to pay Ms Carroll damages for sex abuse and defamation.

The restriction on the former president’s financial activities was imposed by Arthur Engoron, the judge in his New York civil fraud trial, in the run-up to a judgment that could see him fined $250 million and barred from operating businesses in the city.

Mr Engoron is overseeing a jury-less trial to determine penalties for the fraudulent exaggeration of Mr Trump’s net worth and the value of his assets.

Ms Jones said her team’s review of ten months of bank statements from twelve accounts linked to the Donald J. Trump Revocable Trust found three transactions totalling $40 million she did not previously know about.

“These transactions included a cash transfer of $29 million to Donald J. Trump, which I have confirmed was used for tax payments,” she wrote.

“I have also confirmed that the other transfers were for insurance premiums and to an attorney escrow account.”

Escrow accounts are used by lawyers to hold money paid to a plaintiff as the result of a settlement in a civil case.

It is understood the money withdrawn by Mr Trump in this case was to pay Ms Carroll, who sued him for sex abuse and defamation.

A representative for Mr Trump was contacted for comment.

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month, then enjoy 1 year for just $9 with our US-exclusive offer.