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 17, 2023, 12:11 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, 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 17, 2023, 12:06 PM EST

Defense expert appears to contradict his own findings

The cross examination of the defense's real estate expert, which was expected to last at least two hours, ended abruptly after he appeared to contradict his own findings in the expert report he had compiled.

Steven Laposa testified yesterday that he believed the attorney general's report was "flawed" because it was based on the market value of Trump's assets, rather than their investment value, which could be much higher.

Minutes into his cross-examination, state attorney Louis Solomon requested that Laposa read the second sentence of the notes section of Donald Trump's statement of financial condition.

"Assets are stated at their estimated current values," the note said, referring to the properties' market value.

"First time I've seen this," Laposa responded after reading the note, which supported the attorney general's contention that the valuations were indeed based on market values.

"You wrote a report accusing the attorney general of bias" by using market values, Solomon lectured Laposa, prompting a sustained objection from the defense.

Solomon's cross-examination of Laposa concluded after the exchange.

Nov 17, 2023, 10:51 AM EST

Judge limits testimony about 'trophy properties'

The defense's real estate expert Steven Laposa resumed his testimony this morning by testifying about Donald Trump's "trophy properties."

Under questioning from the defense, Laposa explained that certain unique and iconic properties could be classified as trophy properties, which are generally purchased by a smaller pool of real estate investors. Trump's lawyers have claimed that the former president's assets include multiple trophy properties that were undervalued in his financial statements.

When Laposa attempted to describe how trophy properties are generally valued differently compared to normal buildings, state attorney Louis Solomon objected to the line of questioning, calling it a "waste of time."

Judge Arthur Engoron sustained the objection.

Nov 17, 2023, 8:58 AM EST

Trump touts defense witnesses' testimony

Following the fourth full day of testimony from witnesses for the defense Thursday, Donald Trump took to social media overnight to tout his case.

The former president posted that defense witnesses have "conclusively" proven that his financial statements were conservative and adequately disclosed, while claiming that New York Attorney General Letitia James and Judge Arthur Engoron "knowingly, substantially, & outrageously" devalued his assets.

After criticizing Engoron's law clerk in a post last night, Trump's latest posts do not reference the clerk, who Trump was previously prohibited from mentioning under the limited gag order that was temporarily lifted yesterday.

Nov 16, 2023, 8:51 PM EST

With gag order lifted, Trump blasts judge's clerk online

Hours after an appeals court temporarily lifted a gag order that prohibited Donald Trump from commenting about court staff in his civil fraud trial, the former president criticized Judge Arthur Engoron's law clerk on social media.

Describing the gag order as "Ridiculous and Unconstitutional," Trump applauded the appeals court for its decision and described Engoron's clerk as "politically biased and out of control."

Engoron issued the limited gag order after Trump made a false social media post about the clerk last month. This evening's post marked the first time Trump has explicitly mentioned her since then.

Trump also attacked New York Attorney General Letitia James, calling her a "worldwide disgrace," and his former attorney Michael Cohen, who testified against him during the trial.

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