Barbara Jones, a former federal judge who was assigned as a special monitor in the Trump Organization fraud case, wrote a letter to Engoron, suggesting that Trump’s team might have provided false information regarding the existence of a $48 million loan.

“When I inquired about this loan, I was informed that there are no loan agreements that memorialize the loan, but that it was a loan that was believed to be between Donald J. Trump, individually, and Chicago Unit Acquisition for $48 million,” Jones wrote.

“The allegations from the independent monitor’s report could reinforce the judge’s previous findings of fraudulent practices within the Trump Organization,” trial attorney Tray Gober told Salon. “The report suggests a pattern of misleading financial representations, which would bolster the case against the organization. That explains why Trump’s attorneys have come out so hard against Barbara Jones.”

The report is “very important and potentially damaging” to Trump, David Schultz, a professor of political science at Hamline University, told Salon. It might also produce evidence that could lead to new criminal charges or evidence in his forthcoming criminal trial in New York.

A lawyer for the Trumps shot back in a court filing Monday, calling Jones’ report on the family company a “demonstrable falsehood,” adding that the monitor’s “deliberate mischaracterization casts further doubt on her competency and veracity” and “simply fails to support continued oversight,” according to documents obtained by Business Insider.

“The monitor now twists immaterial accounting items into a narrative favoring her continued appointment, and thereby the continued receipt of millions of dollars in excessive fees,” an attorney for Trump Clifford Robert wrote in a letter to Engoron, adding that she has earned over $2.6 million in 14 months on the job.

James has requested Engoron to mandate Jones to oversee the Trump Organization for a minimum of five years as part of his judgment in the case.

The Trump team also recruited a public accountant, Jason Flemmons, to review Jones’s report, who supported their claims, The Daily Beast reported.

“Based upon my education and experience, my review of the various reports, and the express language contained in those reports, the Monitor did not identify any financial reporting misconduct, suspicious activity, or any suspected or actual fraud,” Flemmons wrote.

Last month, Engoron criticized Flemmons for contradicting himself multiple times and appearing overly accommodating to the Trumps. Engoron expressed frustration with the accountant consistently defending the Trump family.

Jones’ report comes shortly before Engoron is expected to issue his decision on financial penalties in the civil fraud case brought by New York Attorney General Letitia James, who has asked that Trump be banned from doing business in the state and pay $370 million for inflating valuations on financial statements for personal gain.

While Engoron has determined that the Trump organization committed fraud, he now has to deliberate on the appropriate penalty.

Unlike the trial phase focused on establishing liability, the rules of evidence are “not as strict” when determining “punishment or penalty,” Schultz said. The court has far more leeway to admit evidence or information that could be useful in determining an “appropriate penalty.”

“These new accusations are significant,” he continued. “They may speak less to the fine but more to a determination whether the Trump Organization retains or loses its right to do business in New York. If this report speaks to ongoing and continuous tax fraud or deception, the judge could conclude that the Trump Organization can no longer be trusted to do business in New York.”

On top of this, the report may “enhance” the financial penalty because of continued “bad behavior” by the Trump Organization, he added.

Trump, who was ordered last week to pay $83 million for defaming writer E. Jean Carroll in 2019, has often resorted to social media to frame his ongoing legal battles as a “witch hunt”

On Sunday, he targeted the attorney general’s accusations, writing on Truth Social: “I AM WORTH MUCH MORE THAN THE NUMBERS SHOWN ON MY FINANCIAL STATEMENTS,” adding that the banks were “paid back in full” and were not victims.

The report could be “pivotal” in the judge’s decision regarding the $370 million penalty requested by prosecutors, Gober said. The Trump Organization, a major player in New York City real estate, faces the possible dissolution of many parts of his business empire, all because of false statements to lenders.

“But the lenders haven’t really cried foul, and Trump’s attorneys are saying it was a victimless crime,” Gober continued. “In that context, the independent monitor’s report is important because it highlights problems with the organization’s financial dealings that may be systemic, which could justify a substantial penalty. However, the judge’s decision will be based on the totality of evidence presented in the case.”

While Trump’s team initially had some “confidence in her,” they are now “comparing her to Javert, the villainous police inspector in ‘Les Misérables’ who wouldn’t cut a hungry thief a break. But everyone knows Trump is not a hungry thief, or at least he’s not hungry,” Gober said.

It will be difficult for Trump’s attorneys to convince the public that Jones is all that villainous because everyone expects a financial auditor to do their work by the book and not cut anyone a break, he added.

Trump and his lawyer’s attacks on Jones will serve as “further evidence” for his supporters to conclude that their candidate is being “persecuted,” Schultz said. However, for the rest of the public, the report and the complaints will “get lost in the noise” of the 2024 presidential election.