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


Eric Trump, leaving court, criticizes case against his family

Standing in the courthouse hallway where his father earlier railed against his civil trial, Eric Trump echoed his father's attacks on the New York attorney general and the case levied against his family, following the adjournment of court for the day.

"We have an unbelievable company. We have some of the best assets anywhere in the world. We've never had a default. We've never missed a payment," Eric Trump said of the Trump Organization.

Like his father, he described the case as politically motivated and decried the involvement of his family.

"They've dragged Don and I and Ivanka into it as collateral damage," he said.

Later, addressing reporters on the courthouse steps, he said that the state's efforts should be focused elsewhere.

"Let's get the murderers off the street. Let's take care of the crime. Let's rebuild our infrastructure. Everywhere you drive in New York, you hit a pothole and your car gets destroyed," he said.


Court adjourned for the day, with Trump on deck for Monday

Judge Engoron adjourned court until Monday, when the state plans to call former President Trump to the stand.

"We will reconvene on Monday at 10 a.m., and the first witness will be...?" Engoron asked state attorney Andrew Amer.

"The only witness will be Donald J. Trump," Amer said.


Eric Trump pressed on Mar-a-Lago valuation

Eric Trump has stepped down from the witness stand after facing an hour of questions from state attorney Andrew Amer.

Amer concluded his questioning by directly asking Eric Trump about the $2 million severance agreement between the Trump Organization and its former CFO, Allen Weisselberg.

"Did you participate in the business agreement to enter into this business decision with Mr. Weisselberg?" Amer asked.

"Yes," Eric Trump said.

"Did your father direct you to enter into this agreement with Mr. Weisselberg?" Amer asked.

"No, he did not," Eric Trump replied. He reiterated, "I did this agreement with Mr. Weisselberg."

Pressed on the value of Trump's Mar-A-Lago property, Eric Trump denied knowing that the club was valued for tax purposes as a commercial property used as a social club.

"It is very clear that Mar-a-Lago is not a club, it is a private residence. I don't see anything wrong with that. 100 percent," Eric Trump said.

Previous testimony and documents in evidence demonstrated that despite the property being restricted by deed to club usage, Donald Trump continued to overvalue the property as if it could be sold as a private residence. Judge Engoron already found that the club was overvalued by 2,300%.

"Mar-a-Lago is a residence that could be sold to a private individual," Eric Trump insisted.



Eric Trump testifies that he signed financial certifications

Eric Trump said that he signed three financial certifications to lenders that relied on his father's statements of financial condition, which are at the heart of the attorney general's case.

"I certified something I believed was accurate. My lawyers told me was accurate, and our financial people told me was accurate," Eric Trump said.

While Eric Trump did not certify his father's financial statements themselves, like his brother Donald Trump Jr., the attorney general has alleged that these certifications to lenders are similarly fraudulent.

Eric Trump said that he did not personally review the methodologies or supporting data for the financial statements themselves, instead relying on lawyers and accountants to verify the documents for him.

"I wouldn't sign something that I thought was inaccurate," he said multiple times.


Judge mulls holding Trump in contempt over gag order

Judge Engoron said he is considering holding former President Trump in contempt of court -- and even raised the possibility of imprisonment -- following what Engoron described as a "blatant violation of the gag order" imposed earlier this month during the trial.

Engoron imposed a limited gag order on Oct. 3 after Trump made a false social media post about the judge's clerk. While Trump immediately removed the post from Truth Social, Trump's campaign website appeared to still include the social media post until last night.

"Despite this clear order, last night I learned that the subject offending post was never removed from [the Trump's campaign website], in fact had been on that website for the past 17 days," Engoron said.

The judge said he was considering holding Trump in contempt of court, fining him, or "possibly imprisoning him."

"Incendiary untruths can, and in some cases already had, lead to serious physical harm," Engoron said.

Trump's lawyer Chris Kise told Engoron that the website including the post was an "inadvertent" mistake and that Trump has tried to comply with the order since it was imposed.

"The Truth Social post was taken down when President Trump represented it to the court," Kise said.

Addressing why the post remained on Trump's campaign website, Kise blamed Trump's "very large [campaign] operation."

"This unfortunately is a part of the process that is built into the campaign structure," Kise said.

Engoron, who did not immediately resolve the issue, said, "I will take this under advisement, but I want to make clear that Donald Trump is still responsible for the large machine, even if it is a large machine."