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 22, 2023, 4:53 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 22, 2023, 4:53 PM EST

NY AG argues for limited gag order in court filing

A lawyer for New York Attorney General Letitia James, in a court filing Wednesday, argued in favor of maintaining the judge's limited gag after an appeals court temporarily lifted the order last week.

The limited gag order, which prohibited Donald Trump and his attorneys from publicly commenting about Judge Arthur Engoron's staff, was issued by the judge last month after Trump posted about the judge's law clerk on social media. Judge David Friedman of the appellate division's First Department stayed the order on Thursday, citing constitutional concerns over Trump's free speech rights.

James' court filing Wednesday alleges that Trump and his lawyers continue to harass Engoron’s law clerk "as part of an improper tactic to disrupt trial and undermine the proceedings."

James said the gag order is a necessary and "exceedingly limited restraint" to protect Engoron’s staff, and Trump’s lawyers failed to prove that attacks on judicial staff during a trial are protected by the First Amendment.

"A speedy denial is necessary to ensure the safety of [the] Supreme Court's staff and the integrity and the orderly administration of the proceedings through the end of the trial," James wrote, describing Trump's attacks as "extraordinary and dangerous."

Arguing that Trump has engaged in a "pattern" of attacking civil servants involved in proceedings against him, James cited his attacks on the former lieutenant governor of Georgia, as well as officials in his federal election interference case. She also mentioned Trump’s renewed attacks against the clerk over the last week since the gag order was lifted, including calling for her prosecution, sharing an article suggesting she engaged in drug use, and describing her as "crooked and highly partisan."

Trump's lawyers have defended such attacks as constitutionally protected speech and argued that Engoron failed to articulate how the attacks present a "clear and present danger" to the clerk.

Trump personally sued Engoron last week using a provision of state law called Article 78, which is generally used to challenge New York government agencies. Trump unsuccessfully attempted to use an Article 78 proceeding on the eve of the trial to delay the proceeding; however, his most recent attempt successfully resulted in a temporary stay of the gag order.

Trump's reply to the filing is due on Nov. 27, after which the First Department will decide whether to fully lift the gag order.

Nov 21, 2023, 3:27 PM EST

Court adjourns for extended Thanksgiving break

After two days of testimony for the defense, former Trump Organization controller Jeff McConney stepped off the witness stand.

Judge Arthur Engoron then adjourned court until Monday.

When court resumes after the Thanksgiving break, the defense plans to call two Trump Organization executives, followed by several Deutsche Bank employees.

Nov 21, 2023, 3:01 PM EST

McConney suggested that Eric Trump review 2021 statement

Former Trump Organization controller Jeff McConney, on cross-examination, testified that he thought Eric Trump should review his father's statement of financial condition in 2021.

"You thought Eric Trump should review the statement of financial condition?" state attorney Andrew Amer asked after showing McConney his notes indicating "Eric should review SOFC."

"That was my thought," McConney said.

When Eric Trump testified, he described the statements as the responsibility of the Trump Organization's accountants.

"I never had anything to do with the statement of financial condition," Eric Trump testified, before partially walking back his statement to say, regarding notes that McConney requested from him, "I don't think that it ever registered it was for a personal statement of financial condition."

Nov 21, 2023, 2:39 PM EST

McConney says overvaluation of Trump’s penthouse was incorrect

Former Trump Organization controller Jeff McConney, testifying for the defense, said that he overvalued Donald Trump's penthouse apartment by over $100 million because he relied on an incorrect email.

Judge Arthur Engoron determined in his partial summary judgment that the penthouse was overvalued by as much as $200 million because it was falsely listed as being three times larger than its actual size.

To get to that value, McConney said relied on a Trump Organization broker who falsely represented the apartment was 30,000 square feet.

"I would rely on him. I figured he knew the property a lot better than I did," said McConney, who added that he never spent considerable time in the apartment.

The Trump Organization lowered the value of the penthouse by more than $200 million in 2017 after a Forbes magazine article exposed the error.

McConney's testimony came before he broke down on the stand at the end of his direct examination.

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