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.
Here's how the news is developing. All times Eastern.
Feb 16, 2024, 4:07 PM EST
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 06, 2023, 12:35 PM EST
Trump airs complaints against judge, New York AG
After a cordial question-and-answer interlude seemed to cool down the temperature in courtroom, the former president has grown increasingly animated as he levels complaints against the judge and the New York attorney general, whom he called "a political hack."
When state attorney Kevin Wallace asked Trump if he disagreed with the attorney general's assessment of the value of some of the Trump Organization's properties, Trump fired back.
"I think it's fraudulent," Trump said. "The fraud is on the court, not on me."
Looking at Wallace but motioning toward Judge Engoron, Trump said of the judge, "You ruled against me before you knew anything about me ... he called me a fraud and he didn't know anything about me."
Referring to New York Attorney General Letitia James, Trump said: "It's a political witch hunt and I think she should be ashamed of herself."
Wallace has largely ignored Trump's asides, instead moving on to the next question. After a particularly agitated exclamation, Wallace asked Trump, "You done?"
"Yes," Trump replied.
Nov 06, 2023, 12:00 PM EST
Real estate valuations aren't a science, defense says
Despite addressing two overvaluations on his statement of financial condition, Trump has repeatedly tried to stymie the state attorney's yes-or-no line of questioning regarding his financial statement, underscoring his legal team's defense that real estate valuations are an art, not a science.
Earlier, in response to a question about the compilation of his financial records in 2021, Trump invoke his work in the White House to demonstrate that he was too preoccupied with the nation's business to engage in his own.
"I was so busy in the White House," Trump said. "My threshold was China, Russia and keeping our country safe."
"Just for the record," state attorney Kevin Wallace replied, "you weren't president in 2021?"
"No, I wasn't," Trump acknowledged.
Nov 06, 2023, 11:44 AM EST
Trump acknowledges adjusting 2 overvaluations
Donald Trump acknowledged during direct examination that he overvalued at least two properties in his statements of financial condition, though he broadly represented that the statements underestimated his total net worth.
"Did you ever think that the values were off in your statement of financial condition?" state attorney Kevin Wallace asked about the document at the center of the case, which the New York attorney general has alleged contained fraudulent valuations.
"Yes, on occasion. Both high and low," Trump said, appearing to surprise Wallace, who paused to allow Trump to continue his answer.
Compared to his sons, who largely testified that they deferred to accountants and lawyers, Trump portrayed himself as an experienced businessman who "was certainly more expert than anybody else" when it came to the value of his own properties.
Asked about properties like 40 Wall Street and a retail space near Trump Tower, the former president confidently used real estate shorthand to explain why he thought certain properties were undervalued. He also repeated that his brand value -- which was not included in his financial statement -- is worth billions.
"The most valuable asset was the brand value," Trump said. "I became president because of my brand."
Former President Donald Trump prepares to testify during his trial at New York State Supreme Court in New York, on November 6, 2023.
Jabin Botsford/POOL/AFP via Getty Images
However, Trump acknowledged that two properties -- his triplex apartment in Trump Tower and his Seven Springs estate in New York's Westchester County -- were overvalued and had to be adjusted in his financial statement.
"I thought the apartment was overvalued when I looked at it," Trump said, appearing to refer to a $200 million correction applied to his statement after Forbes magazine reported that he falsely stated the apartment was three times its actual size.
Asked about the change in the statement, Trump acknowledged the square footage mistake, which he blamed on a broker, while also claiming that the number was "not far off" from reality when you consider the square footage of Trump Tower's roof.
"It's a mistake … [but] there's a disclaimer clause so you don't have to get sued by the attorney general of New York," Trump said.
"I thought it was too high and we lowered it," Trump said, though he could not provide specifics about the changed valuation.
Nov 06, 2023, 11:09 AM EST
'This is a very unfair trial,' Trump says
Judge Engoron has continued to interrupt the former president, imploring him to refrain from lengthy responses as Trump has remained calm and measured while attacking the judge and making political pronouncements.
"I beseech you to control him," Engoron barked at Trump's attorney, Christopher Kise. "If you can't, I will."
Kise has attempted to argue that Trump is entitled to answer questions in his own way.
Former President Donald Trump prepares to testify during his trial in New York State Supreme Court on November 06, 2023 in New York City.
David Dee Delgado/Getty Images
"This is a situation where you have on the stand a candidate for president of the United States. Being here takes away from that effort," Kise said. "The court needs to hear what he has to say about these statements."
"No, I am not here to hear what he has to say," Engoron shot back.
When Trump attorney Alina Habba attempted to weigh in, Engoron raised his voice, telling her, "Sit down already! Sit down."
After a moment's pause, Trump weighed in with a measured tone.
"This is a very unfair trial," Trump said. "I hope the public is watching."