Trump civil fraud case: Judge fines Trump $354M, says frauds 'shock the conscience'

The former president was found to have defrauded lenders.

ByPeter Charalambous and Aaron Katersky
Last Updated: October 11, 2023, 9:09 AM EDT

Former President Donald Trump has been fined $354.8 million plus approximately $100 million in interest in a civil fraud lawsuit that could alter the personal fortune and real estate empire that helped propel him to the White House. In the decision, Judge Arthur Engoron excoriated Trump, saying the president's credibility was "severely compromised," that the frauds "shock the conscience" and that Trump and his co-defendants showed a "complete lack of contrition and remorse" that he said "borders on pathological."

Engoron also hit Donald Trump Jr. and Eric Trump with $4 million fines and barred all three from helming New York companies for years. New York Attorney General Letitia James accused Trump and his adult sons of engaging in a decade-long scheme in which they used "numerous acts of fraud and misrepresentation" to inflate Trump's net worth in order get more favorable loan terms. The former president has denied all wrongdoing and has said he will appeal.

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Here's how the news is developing. All times Eastern.
Feb 16, 2024, 4:07 PM EST

Summary of penalties

Donald Trump and his adult sons were hit with millions in fines in the civil fraud trial and barred for years from being officers in New York companies. The judge said the frauds "shock the conscience."

Donald Trump: $354 million fine + approx. $100 million in interest
+ barred for 3 years from serving as officer of NY company
Donald Trump Jr.: $4 million fine
+ barred for 2 years from serving as officer of NY company
Eric Trump: $4 million fine
+ barred for 2 years from serving as officer of NY company
Former Trump Organization CFO Allen Weisselberg: $1 million fine
+ barred for 3 years from serving as officer of NY company
+ barred for life from financial management role in NY company
Former Trump Organization controller Jeffrey McConney:
+ barred for 3 years from serving as officer of NY company
+ barred for life from financial management role in NY company

Oct 11, 2023, 9:04 AM EDT

Deutsche Bank executive set to take stand

Donald Trump's civil fraud trial is set to resume this morning with the testimony of Nicholas Haigh, a credit risk executive who worked at Deutsche Bank when it issued loans to the former president.

Deutsche Bank was the largest single lender to the Trump Organization between 2011 and 2022, according to the New York attorney general.

Owing approximately $340 million to the bank at one point, the Trump Organization used Deutsche Bank to secure favorable loans related to its purchase of the Old Post Office Hotel in Washington, D.C., the Trump International Hotel and Tower in Chicago, Illinois, and Trump National Doral golf club in Florida, according to the AG's complaint.

Oct 10, 2023, 5:23 PM EDT

Ex-CFO can't say who OK'd statements after Trump became president

Ex-CFO Allen Weisselberg, who testified earlier Tuesday that Trump approved his financial statements before they were finalized during the years between 2011 and 2016, was unable to recall who approved financial statements after Trump was elected president in 2016.

While he recalled discussing some elements of the statements with Trump Organization VP Eric Trump, he declined to say that either Eric or VP Don Jr. had final say regarding the statements.

Court then adjourned for the day.

Court is set to resume Wednesday morning with the testimony of Deutsche Bank risk manager Nicholas Haigh, who is testifying early due to a scheduling conflict.

Weisselberg is scheduled to return to the witness stand later Wednesday.

Oct 10, 2023, 4:40 PM EDT

Ex-CFO OK'd financial documents used to prevent loan default

Ex-Trump CFO Allen Weisselberg testified that he certified that Trump's financial statements were "true, correct and complete" so the documents could be provided to lenders to prevent a breach of contract resulting in a loan default.

"Please see the attached report required per our loan documents, for the above referenced loan," a Trump Organization employee would write to lenders like Wells Fargo, according to examples entered into evidence.

The employee would include a certification, signed by Weisselberg, attesting to the accuracy of Trump's financial documents.

"Did you understand that if you failed to provide this, the Trump organization would be in breach of its obligations under the loan agreement?" state attorney Louis Solomon asked Weisselberg for each email.

"Yes," Weisselberg replied.

Oct 10, 2023, 3:37 PM EDT

Weisselberg says Trump signed off on financial statements

Donald Trump would approve his financial statements before they were finalized between 2011 and 2016, ex-Trump CFO Allen Weisselberg testified.

Weisselberg said that Trump often had feedback about the notes sections of the statements, which contained more detailed descriptions of Trump's properties.

"'Don't use the word beautiful. Use the word magnificent,'" Weisselberg offered as an example of the kind of feedback Trump would provide.

Alan Weisselberg, Donald Trump's longtime finance chief, left, sits inside New York Supreme Court, Oct. 10, 2023, in New York.
Seth Wenig/AP

Earlier Tuesday, Weisselberg testified that he did not meet with Trump or attorney Michael Cohen to review the statements. Returning to the topic after the lunch break, Weisselberg described Trump's final review of the document as a regular occurrence before he became president.

"Did you ever send it to the Mazars [accountants] … as a final version before Mr. Trump signed off on it?" state attorney Louis Solomon asked.

"Not that I can remember, no," Weisselberg said.

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