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 26, 2023, 11:02 AM EDT

Defense asks judge to reconsider gag order fine

Defense attorney Chris Kise requested that Judge Engoron again reconsider his decision to fine Donald Trump $10,000 for violating the case's limited gag order yesterday, offering a broader criticism of the gag order based on First Amendment grounds.

"This is open, public, and the defendant has a First Amendment right to comment on what he sees and perceives as a potential source of bias," Kise said.

Like yesterday, Kise maintained that Trump was referring to Michael Cohen, rather than the judge's law clerk, during his hallway statement in which he said the judge has a "person who is very partisan sitting alongside of him." Trump attested to this on the stand yesterday, though Engoron found that Trump was "not credible."

"The review of the statement does not support the sanction," Kise said.

Even if Trump was referring to the clerk, Kise made a broader argument that the gag order itself was "constitutionally infirm," considering Trump is the "leading candidate" for the presidency.

"I don't think that the order survives constitutional scrutiny," Kise said.

State attorney Andrew Amer argued in support of the gag order, which he said was narrowly limited to withstand constitutional scrutiny.

"A federal judge in D.C. has issued a similar order to protect herself," Amer added, referring to a ruling in Trump's election interference case.

Judge Engoron said he would reconsider the fine but stood by his gag order.

Oct 26, 2023, 10:19 AM EDT

Insurance underwriter to testify

An underwriter who worked on a Trump Organization insurance policy to cover legal expenses incurred by the firm's executives is scheduled to testify this morning.

Michael Holl, an underwriter at Tokio Marine HCC, worked on the Trump Organization's Directors and Officers insurance policy in 2016 and 2017, according to the New York attorney general.

With Donald Trump about to be inaugurated president at the time, the Trump Organization attempted to increase their policy's limit to $50,000,000, which was ten times higher than their previous limit, according to the attorney general.

"In response to specific questioning from the underwriters, the Trump Organization personnel represented that there was no material litigation or inquiry from anyone that could potentially lead to a claim under the D&O coverage," the state alleged in their complaint.

However, four months before that representation was made, Trump Organization executives learned about an ongoing investigation by the attorney general into the Trump Foundation as well as Trump family members, according to the complaint.

Oct 26, 2023, 9:34 AM EDT

Trump, AG offer contrasting takes on Cohen's testimony

After a dramatic day in court yesterday -- including surprise testimony from Donald Trump, a $10,000 gag order violation fine, and inconsistent testimony from Michael Cohen -- both New York Attorney General Letitia James and the former president took to social media to describe the state of the trial.

"Their 'star' witness lied like a dog on the stand today," Trump wrote in a Truth Social post overnight.

In a video statement posted on X, formerly Twitter, James defended her case against Trump as a multi-year effort built on thousands of documents and hundreds of witnesses, rather than simply the testimony of Cohen.

"The defendants' counsel attempted and failed to discredit our entire case," James said.

Judge Arthur Engoron yesterday denied a motion from the defense to dismiss the case following the conclusion of Cohen's testimony, saying that Trump's former lawyer was not the case's "star witness."

"There's enough evidence in this case to fill this courtroom," Engoron quipped.

Oct 25, 2023, 5:07 PM EDT

AG downplays Cohen's testimony as Trump slams it

Following the adjournment of court for the day, Trump and New York Attorney General Letitia James offered contrasting views of the testimony of former Trump lawyer Michael Cohen.

Trump, speaking to reporters in a courthouse hallway, continued to claim that today was his Perry Mason moment.

"He was caught lying like no one has ever lied," he said of Cohen. "It was better than a Perry Mason moment, and that should be the end of the case."

The former president also criticized Judge Engoron for not ending the trial following Cohen's testimony, claiming he is being "railroaded."

"Any other judge, this would be the end of the case," Trump said.

New York Attorney General Letitia James speaks to the press at the Trump Organization civil fraud trial, outside New York State Supreme Court in New York City, Oct. 25, 2023.
Mike Segar/Reuters

James, speaking separately to reporters outside court, downplayed Cohen's importance to the case.

"It's also important to know that Michael Cohen is not the main witness," she said.

"His evidence has been corroborated by the mountains of evidence, enough evidence to fill the courtroom," the AG said, echoing a phrase Engoron used earlier.

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