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 25, 2023, 3:05 PM EDT

'Don't do it again or it will be worse,' judge tells Trump

"Don't do it again or it will be worse," Judge Engoron told former President Trump after fining him $10,000 for violating the limited gag order he imposed prohibiting comments about his staff.

The judge made the comment after Trump's lawyers raised concerns with the sanction.

Trump attorney Chris Kise specifically criticized Engoron for not believing Trump's testimony, which the judge described as "not credible."

"I think the speaker needs to be taken at face value," Kise said.

Former President Donald Trump attends the continuation of his civil business fraud trial at New York Supreme Court, Oct. 25, 2023, in New York.
Dave Sanders/Pool via AP

Trump attorneys Alina Habba and Clifford Robert also criticized how closely Engoron appears to work with his clerk during the trial, which they described as unorthodox.

"I make the final decisions. I value input from both of my law clerks. Every judge does things differently," Engoron said.

When Trump took the stand, the former president sat still but appeared unfazed by the sudden turn of the events.

While Engoron issued his ruling, Trump sat with his arms crossed at the counsel table and briefly conferred with Kise.

Oct 25, 2023, 2:47 PM EDT

Trump, after testifying, fined $10,000 for violating gag order

Judge Engoron fined former President Trump $10,000 for violating a limited gag order after deciding that Trump referred disparagingly to his law clerk during a statement in the hallway.

Trump briefly took the witness stand, raising his hand and stating his name, "Donald John Trump, New York."

Engoron asked Trump, "Did you say, 'This judge is a very partisan judge with a person who is very partisan sitting alongside of him?'"

Trump responded "Yes," but insisted he was referring to Michael Cohen, who was seated next to the judge in the witness chair.

In this courtroom sketch, Judge Arthur Engoron questions former President Donald Trump on the witness stand in New York Supreme Court, on Oct. 25, 2023, in New York.
Elizabeth Williams via AP

"You sure you didn't mean the person on the other side?" Engoron asked, referring to his law clerk, whom Trump previously disparaged in a social media post that the judge ordered him to take down as part of the limited gag order he imposed earlier in the trial.

"Yes, I'm sure," Trump answered.

Trump conceded his social media post was "maybe unfair" but he added he thinks "she's very unfair."

Engoron decided Trump's hallway statement must have referred to his clerk because "there's a barrier" between the bench and Cohen, and he suggested Trump would have called Cohen by name.

The defense immediately balked at the fine.

"I just don't think there's any clear record here," defense attorney Chris Kise said.

Oct 25, 2023, 2:35 PM EDT

Trump takes stand for gag order hearing

Trump been sworn in as a witness for a hearing Judge Engoron is holding on whether he violated the limited gag order Engoron imposed earlier in the trial.

The former president then took the stand.

Oct 25, 2023, 1:52 PM EDT

Trump mum on private conference with judge

After Judge Engoron raised concerns that Trump had possibly violated the limited gag order the judge had imposed during the trial, Trump and his lawyers remained inside the courtroom at the start of the lunch break for a 25-minute conference that was sealed to the press.

Afterward, when asked by reporters about the private conference, Trump responded, "I can't tell you."

Trump otherwise praised his lawyer's cross examination of Michael Cohen, who admitted he lied under oath on multiple occasions.

"That was a Perry Mason moment," Trump said.

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