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

The former president was found to have defrauded lenders.

Last Updated: February 16, 2024, 7:15 PM EST

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, 4:07 pm

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 24, 2023, 5:37 PM EDT

Cohen combative during forceful cross-examination

Michael Cohen underwent a forceful cross-examination by Trump attorney Alina Habba in the day's final court session.

"You are not on Mea Culpa. You are not on your podcast, and you are not on CNN. You're here with me," Habba instructed Trump's former attorney during the questioning.

Compared to Cohen's direct examination -- when Trump could often be seen conferring with the lawyers by his side, examining exhibits, or passing notes around -- Trump had a more positive demeanor during the cross.

Cohen himself grew combative at parts of the questioning, responding "objection" and "asked and answered" as if he were a lawyer at counsel table, rather than a witness on the stand.

"You have lied under oath numerous times, isn't that correct, Mr. Cohen?" Habba asked at one point.

"That is correct," Cohen replied.

Habba even admitted that she was enjoying herself during the questioning, after Judge Engoron offered to cut testimony short for the day.

"It is entertaining -- I am happy to go all night," Habba said.

Exiting court at the end of the afternoon, Cohen declined to comment about the ongoing cross-examination.

"He's a disgraced felon, and that's the way it's coming out," Trump said on his way out.

Oct 24, 2023, 4:36 PM EDT

'This witness is out of control,' Trump attorney says of Cohen

Trump attorney Alina Habba began her cross-examination by having Michael Cohen recount the criminal acts related to his 2018 guilty plea.

"Mr. Cohen, what did you respond?" Habba asked while reading a transcript from his 2018 plea proceeding.

"Guilty, your honor," Cohen said aloud in court.

Habba also read from a sentencing memorandum related to Cohen's plea in which prosecutors wrote that Cohen's crimes "were marked by a pattern of deception that permeated his professional life."

When Habba asked if Cohen lied to his wife about evading taxes, Cohen responded by saying "objection" and attempting to cite legal precedent.

"You can't object. It's a yes or no question," Habba said.

"He is a serial liar, and he lied to his wife," defense lawyer Chris Kise told the judge about why the question is relevant. He later added, "This witness is completely out of control."

Oct 24, 2023, 4:29 PM EDT

Defense begins cross-examination of Cohen

Following the conclusion of the state's direct examination of Michael Cohen, Trump attorney Alina Habba has begun what is expected to be a lengthy cross-examination.

“You understand what 'under oath' means?” Habba asked Cohen at the start of her cross-examination.

“Yes,” Cohen said, after which Habba began to describe Cohen’s previous criminal conduct.

Oct 24, 2023, 4:20 PM EDT

Trump claimed $8B net worth when bidding for Buffalo Bills

When Donald Trump attempted to bid for the Buffalo Bills football team in 2014, he claimed that his net worth was "in excess of eight billion dollars," according to a document entered evidence during Michael Cohen's testimony.

To support the bid, Trump's frequent lender Deutsche Bank sent a letter to Morgan Stanley to demonstrate that Trump had the "financial wherewithal" to support his bid, according to Cohen.

The New York attorney general alleges that Trump used his inflated financial statement to convince Deutsche Bank to support Trump's financial strength.

The line of questioning prompted strong objections from Trump lawyer Chris Kise, who argued that the bid for the Buffalo Bills is not related to any of the attorney general's causes of action.

"I think this is arguably false, particularly the eight billion dollars ... and this shows a pattern of practice of fraud," Judge Engoron said when overruling the objection.

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