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

The former president was found to have defrauded lenders.

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.


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


Trump says he'll return to courtroom this morning

Donald Trump plans to attend his ongoing fraud trial in downtown Manhattan this morning, the former president said in a Truth Social post this morning.

Star witness Michael Cohen, Trump's former lawyer and self-described "fixer," will be absent from the courtroom after a medical issue delayed his testimony.

Trump will instead hear testimony from his company's assistant controller, Donna Kidder.

State attorneys also plan to call real estate executives who appraised Trump properties, as well as real estate executive Jack Weisselberg, the son of former Trump Organization CFO Allen Weisselberg, who worked on a refinanced loan for Trump's 40 Wall Street property.

Trump was in attendance for the first three days of the trial when it began two weeks ago.


Trump Hotels chief accounting officer concludes testimony

State attorney Andrew Amer concluded his direct examination of Trump Hotels chief accounting officer Mark Hawthorn by applauding Hawthorn's skills and experience.

Amer highlighted that Hawthorn successfully conducted cash flow analysis, understood estimated current value, and applied the generally accepted accounting principles to his work.

Asked by Amer if he was ever asked to work on Trump's statement of financial condition -- a job that was handled by other executives like CFO Allen Weisselberg and controller Jeffrey McConney, who in earlier testimony acknowledged their lack of knowledge regarding foundational accounting principles -- Hawthorn replied that he was never approached about the task.

"I would be qualified to give it a try," said Hawthorn.

Hawthorn then stepped down from the witness stand to make way for Trump Organization assistant controller Donna Kidder to begin her testimony, after which court was adjourned for the day.

Kidder's testimony is scheduled to resume tomorrow morning, when former President Trump is expected to return to the courtroom.


Assets on statement were apparently overstated, exec says

Trump Hotels chief accounting officer Mark Hawthorn testified that in 2018 he inadvertently overstated the value of Trump's assets by relying on Trump's statement of financial condition.

When an outside accounting firm requested the amount of Trump's liquid assets, Hawthorn said he consulted the financial statement that listed "cash equivalents in excess of $290 million."

The New York attorney general alleges that Vornado Partnerships, a separate company with whom Trump has a limited partnership interest, owned 30% of the "cash and cash equivalents" Trump claimed in his 2018 statement.

In his testimony, Hawthorn said that information was not disclosed in the statement. He also said that he only was able to view the statement briefly in a 20-minute Google Meet session.

"It appears to have been overstated," Hawthorn said of the representation of Trump's assets on the statement.



Michael Cohen could testify next Monday, judge says

The earliest possible day that former Trump attorney Michael Cohen could testify is next Monday, Judge Engoron said.

Cohen, who for years was Trump's so-called "fixer," said an ongoing medical issue had forced him to postpone his testimony, which was originally scheduled to begin tomorrow.

Judge Engoron noted that he has not yet received Cohen's "all-important doctor's note," but that he hopes to receive it sometime today.

Trump attorney Chris Kise criticized the delayed appearance of Cohen, who he described as central to the state's case -- noting that Cohen has continued to post to social media despite his medical issue.

"He does continue to be active in his pursuit of my client," Kise said. "He does not appear to be that infirm."


Judge again denies request to subpoena independent monitor

Judge Engoron again denied a request from the defense to subpoena the Trump Organization's independent monitor for testimony.

Twice this week, Trump's attorneys unsuccessfully sought to call to the stand former judge Barbara Jones, the monitor appointed by Engoron to oversee the Trump Organization's finances after the New York attorney general accused the firm of fraud.

Trump attorney Chris Kise tried for a third time Friday.

"We should be entitled to the benefit of having Judge Jones here to respond to those questions about any ambiguities that might exist in her reports," Kise said.

State attorney Andrew Amer argued against the request, citing Jones' immunity as an agent of the court.

"Your request to subpoena Judge Jones is denied," Engoron said, describing the request as a "dangerous infringement on court immunity."

In her latest report issued to Engoron this week, Jones reported that the Trump Organization was "in compliance" but under "enhanced monitoring."

Court was subsequently adjourned for the day following Engoron's ruling.