In a significant blow to former US President Donald Trump's business empire and financial standing, a New York judge has ruled that Trump must pay $355 million over fraud allegations and is prohibited from running companies in the state for three years.

The ruling, delivered by Judge Arthur Engoron, found Trump liable for unlawfully inflating his wealth and manipulating property values to secure favorable bank loans or insurance terms. Trump's sons, Eric and Donald Trump Jr., were also held liable and ordered to pay over $4 million each.

Trump, who is widely expected to be the Republican presidential nominee in the upcoming election, accused President Joe Biden of driving the case, labeling it as "weaponization against a political opponent who's up a lot in the polls." He vowed to appeal the decision.

Although the ruling pertained to a civil case rather than a criminal one, Trump faces mounting legal challenges, with 91 criminal counts pending in other cases. Despite his legal woes, Trump has used the situation to rally supporters and criticize Biden, characterizing the court cases as attempts to undermine him politically.

Judge Engoron justified the significant penalties imposed on Trump, citing his lack of contrition and remorse, which he described as "bordering on pathological." The ruling also mandates an independent compliance director for the Trump Organization.

The order marks a victory for New York State Attorney General Letitia James, who sought $370 million in restitution from Trump and advocated for his ban from conducting business in the state. James hailed the ruling as a "tremendous victory" for accountability and the rule of law.

In response, Trump has lambasted James and Engoron, dismissing the ruling as politically motivated. His lawyer, Chris Kise, argued that there was no clear evidence of intent to defraud on Trump's part.

The ruling concludes a tumultuous legal week for Trump, who faces a criminal trial in New York over hush money payments and separate legal battles related to attempts to overturn the 2020 election results.