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.

Top headlines:

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, 4:34 PM EDT

Cohen, following testimony, calls Trump 'a defeated man'

Speaking outside after his testimony was complete and court was adjourned for the day, former Trump attorney Michael Cohen portrayed his testimony as successful and vital to holding Trump accountable, despite the contradictions in some of his answers.

Cohen maintained that he was not intimidated by Trump being in court during his testimony.

Former attorney for former U.S. President Donald Trump, Michael Cohen, speaks to the press after attending the Trump Organization civil fraud trial, outside New York State Supreme Court in New York City, Oct. 25, 2023.
Mike Segar/Reuters

"When you looked him in the eye, Michael, what did you see?" ABC News reporter Aaron Katersky asked him.

"I saw a defeated man. I saw somebody that knows that it's the end of the Trump Organization," Cohen said.

Oct 25, 2023, 4:10 PM EDT

'There's enough evidence to fill this courtroom,' says judge

Judge Arthur Engoron vehemently denied the defense's request to end the trial following former Trump attorney Michael Cohen's contradictory testimony.

"The government's key witness has fallen flat on his face," Trump attorney Clifford Robert said when requesting the case be dismissed.

"Absolutely denied. This case has evidence, credible or not, all over the place," said Engoron, who disagreed that Cohen was the case's star witness.

"There's enough evidence to fill this courtroom," Engoron said.

During Cohen's redirect examination, state attorney Colleen Faherty attempted to square Cohen's inconsistent answers by asking about his 2019 congressional testimony again. Cohen testified yesterday that he was "tasked by Trump" to inflate Trump's reported net worth, then today said his 2019 testimony, in which he said Trump never directly told him to do so, was correct.

"Donald Trump speaks like a mob boss … he tells you what he wants without specifically telling you," Cohen said in explaining the inconsistent response. "We understood what he wanted."

Oct 25, 2023, 3:34 PM EDT

Trump storms out after Cohen reverses testimony

Former President Trump stormed out of courtroom after the judge denied his request for an immediate directed verdict to end the trial.

Defense attorney Clifford Robert asked Judge Engoron to end the trial after Michael Cohen offered contradictory testimony about his 2019 testimony in front of Congress.

During his 2019 testimony, Cohen was directly asked, "Did Mr. Trump direct you or Mr. Weisselberg to inflate the numbers for his personal statement?" referring to then-Trump Organization CFO Allen Weisselberg.

"Did he ask me to inflate the numbers? Not that I recall," Cohen responded.

Confronted with this testimony before today's lunch break by Alina Habba, Cohen testified that he lied during the 2019 testimony.

Shown the same testimony again by Robert after lunch, Cohen reversed course.

"I stand with that response, not that I recall, no," Cohen said, indicating his 2019 testimony was truthful.

Sitting at the counsel table, Trump mumbled inaudibly, threw up his hands, and gestured to Robert, who walked over to Trump from the lectern where he was questioning Cohen.

Trump and Robert whispered for roughly ten seconds, after which Robert returned to the lectern and asked for a directed verdict.

"I can't think of anything more appropriate now," Robert said.

"Denied," Engoron immediately responded.

Trump immediately stood up, turned around, and marched out of the courtroom flanked by Secret Service agents.

"The witness just admitted that we won the trial, and the judge should end this trial immediately," Trump told reporters as he entered the hallway.

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.

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