Trump civil fraud case: Judge fines Trump $354M, says frauds 'shock the conscience'

The former president was found to have defrauded lenders.

Last Updated: November 14, 2023, 10:38 AM 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, 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 14, 2023, 10:26 AM EST

Judge doesn't address post Trump shared calling for his arrest

As court got underway this morning, Judge Engoron -- who has said he has received harassing messages regarding his role in the trial -- did not address Trump's sharing of a post on his Truth Social platform calling for his arrest.

The former president yesterday shared a user's post calling for the "citizens arrest" of Engoron and Attorney General Letitia James "for blatant election interference and harassment."

When he expanded the case's limited gag order earlier this month, Engoron said that his chambers had received hundreds of "harassing and threatening phone calls, voicemails, emails, letters, and packages" since the start of the trial.

The gag order does not prohibit attacks against Engoron himself or the New York attorney general.

Nov 14, 2023, 9:40 AM EST

Defense to call first expert witness

Donald Trump's defense team plans to call their first of several expert witnesses to the stand today.

Steven Witkoff, a New York-based real estate investor and developer, is set to testify about his expert opinion that the Trump National Doral golf course in Miami was undervalued in Trump's financial statement, despite the attorney general's claim to the contrary.

The expert report Witkoff prepared for the case also criticized the finding from the state's expert regarding the value of Trump's 40 Wall Street property.

During a 2018 roundtable on tax reform, Trump called Witkoff a "pal" who he inspired to enter the real estate industry.

"You know, people don't realize Steve started out as a lawyer -- a very good lawyer, a top lawyer in New York. And then he said, 'I'm going to go into the real estate business because I can do this, too," Trump said. "He saw me do it, and he said, 'If Trump can do it, I guess I can do it, right?'"

Nov 14, 2023, 9:02 AM EST

James, Trump respond as defense begins its case

In a video statement posted to social media, New York Attorney General Letitia James said that the testimony of Donald Trump Jr. yesterday failed to refute any of her case against Donald Trump and his adult sons.

"After spending a full day walking through a marketing presentation to sell us all on the greatness of the Trump Organization, the defendants did not make a single point to refute the case we brought against them," James said of Trump Jr., who led off the defense's case.

Trump's eldest son, an executive VP with the family firm, functionally served as a summary witness to explain the history and notable assets of the Trump Organization, repeatedly using words like "spectacular" and "incredible" to spell out the details of Trump's properties.

James, meanwhile, drew the ire of Donald Trump for appearing to smile in court.

"A.G. Letitia James is smirking all day long from her seat in Court, as New York continues to set records in murder and other violent crimes, and businesses flee to other States," Trump wrote on Truth Social this morning, despite murders in New York City being down nearly 10% this year according to the NYPD.

Nov 13, 2023, 5:55 PM EST

Court adjourns for day after tax lawyer's testimony

The defense wrapped up the first day of its case with testimony from Donald Trump's former external tax lawyer, Sheri Dillon, who returned to the witness stand to clarify her actions related to conservation easements at Trump's properties.

Dillon previously testified during a lengthy and combative portion of the state's case.

"Welcome back. I feel like I am at a reunion -- Trump trial reunion," Judge Engoron joked when Dillon returned to the courtroom.

Dillon, explaining a potential gap in email communications about specific deals, testified that she often communicated with Eric Trump over the phone.

"If I picked up the phone and talked to him, I would know he knew what he needed to know," Dillon testified.

She also said she advised Trump's appraiser, David McArdle, that the company could add 40 additional residential units at Trump National Golf Club in New York's Westchester County by filing a new offering plan, according to an email shown in court. The clarification challenges the New York attorney general's allegation that a $101 million increase in the value of undeveloped land was based on an unfounded plan by Eric Trump to add units to the property.

During a short cross-examination, state attorney Louis Solomon attempted to challenge Dillon's authority to provide such legal information to McArdle.

"Do you know if a sponsor has a right to have an offering plan accepted for filing merely because the development meets the requirements for zoning?" Solomon asked.

"No, I do not," she responded.

Dillon concluded her testimony, and court then adjourned for the day.

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