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: 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

Nov 02, 2023, 4:12 PM EDT

Eric Trump denies ignoring appraisal of luxury NY property

Eric Trump denied that he ignored a professional appraisal that would have significantly lowered the value of his family's Seven Springs estate in New York's Westchester County.

State attorney Andrew Amer attempted to show Eric Trump multiple emails and calendar invites from 2014 and 2015 to demonstrate that he was personally involved in an appraisal by Cushman & Wakefield executive David McArdle that placed the total value of the property's undeveloped lots between $30 and $50 million.

Trump's 2014 financial statement, in contrast, valued the property at $291 million, including $161 for just seven of the undeveloped lots.

"Can we agree that Mr. McArdle's valuation in relation to the easement donation he was doing was disregarded?" Amer asked.

"No, the exercises are apples and oranges. Nothing to do with each other," Eric Trump responded.

Nov 02, 2023, 3:53 PM EDT

Attorney continues to press Eric Trump on financial statement

Eric Trump grew visibly irritated as he appeared to struggle with his testimony regarding his father's statement of financial condition.

Resisting state attorney Andrew Amer's efforts to show he was familiar with the document at the center of the case, he at times raised his voice and punctuated his short answers with phrases like "obviously," "clearly," and "as I previously testified." Other times he responded with lengthy equivocations, prompting Amer to exhort him to keep his answers to "yes or no."

Eric Trump, center, appears at the fraud trial for his father, former President Donald Trump, at New York Supreme Court, Nov. 2, 2023.
Jeenah Moon/AP, FILE

"You don't have to give a speech about that," Judge Engoron implored Eric Trump at one point.

Amer repeatedly asked variations of the same question: Was Eric Trump aware of his father's statement of financial condition?

"This is not something I ever recall seeing or working on," Eric Trump said in one clip from his deposition that was played in court. "This is accounting, and that is not what I do on a daily basis."

Nov 02, 2023, 2:49 PM EDT

Eric Trump appears to contradict deposition

After acknowledging in his testimony that he provided Trump Organization controller Jeffrey McConney with information for his father's statement of financial condition, Eric Trump was shown video from his own deposition where he appeared to contradict his testimony in court.

"I have no recollection of ever providing Jeff material to be used in a statement that I've ever seen," Eric Trump said in the deposition he gave state attorneys during their probe.

"I don't think it would have ever registered" what the material was for, Eric Trump said in court today, responding to his own statement during his deposition.

Nov 02, 2023, 2:32 PM EDT

Eric Trump clarifies testimony about email

Eric Trump clarified his earlier answer regarding his involvement in his father's statement of financial condition, in which he was asked if he recalled a 2013 email from then-Trump Organization controller Jeff McConney asking him for notes for the statement.

"I clearly understood I sent notes to Jeffrey McConney," Eric Trump testified.

"I don't think that it ever registered [that] it was for a personal statement of financial condition," he said.

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