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

The former president was found to have defrauded lenders.

Last Updated: February 16, 2024, 7:15 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, 4:07 pm

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 06, 2023, 10:42 AM EST

'Please just answer the questions,' judge says

Asked by State attorney Kevin Wallace about his 2014 statement of financial condition, Trump took a swipe at Judge Engoron.

"First of all, it's so long ago -- this is well beyond the statute of limitations," Trump said. "But I'm sure the judge will rule against me because he always rules against me."

Engoron, who had already directed Trump to answer concisely and avoid lengthy narrative responses, stepped in, addressing Trump's attorney Christopher Kise.

"Mr. Kise, was that relevant to the narrative?" he asked.

"This is an unusual situation and an unusual trial," Kise replied. "I think it's fair for the court to hear his position. I certainly think it's fair for the American people to hear his position."

"The comment that I always rule against him ... certainly didn't answer the question," Engoron said. "You can attack me -- you can do whatever you want. Please just answer the questions."

Nov 06, 2023, 10:34 AM EST

'All Trump haters,' Trump calls attorneys

Less than 10 minutes into his direct examination, Donald Trump took an opportunity to criticize the investigations and prosecutions that have dogged his life after the presidency.

"You and every other Democratic district attorney, AG, U.S. Attorney were coming after me from 15 different sides. All Democrats, all Trump haters," Trump said unprompted.

State attorney Kevin Wallace attempted to begin his direct examination by asking Trump his revocable trust -- the mechanism that Trump used to prevent business conflicts during his presidency.

"I thought there may be a conflict of interest, so I formed the trust," Trump said, describing his son and trustee Donald Trump Jr. as "a hard working boy, young man."

Asked about former Trump Organization CFO Allen Weisselberg, who also was a trustee, Trump spoke highly of his former employee, who later pleaded guilty to tax evasion.

"He did a good job, he was very good at what he did," Trump said. "We really liked him for a long time.'

Trump said that he briefly resumed control of his trust in 2021 before returning control back to Donald Trump Jr. so he could return to politics.

"He was impressive in business, as was Eric. I thought that I would do that while I continue en route to politics," Trump said before decrying the political motivation of his multiple criminal cases.

Judge Arthur Engoron has already advised Trump to limit the length of his answers.

"I would like things to move along a little faster. Please answer the questions, no speeches," Engoron said.

Nov 06, 2023, 10:26 AM EST

'The numbers are much greater,' Trump says

"This is all ridiculous," Trump told reporters on his way into the courtroom, regarding the trial.

Former President Donald Trump attends the Trump Organization civil fraud trial, in New York State Supreme Court in New York City, November 6, 2023.
Shannon Stapleton/Reuters

"The numbers are much greater than on the financial statement," he said of the New York attorney general's accusation that he overvalued his properties on this statements of financial condition, before going on to call New York AG Letitia James, who is Black, a racist who has "made some terrible statements."

Nov 06, 2023, 10:07 AM EST

Trump takes the stand

"The people call Donald J. Trump," state attorney Kevin Wallace said.

With that, Donald Trump rose from his seat, made the short walk from the counsel table to the witness stand, and took a seat.

To his immediate right sits Judge Arthur Engoron and his clerk Allison Greenfield, who Trump has repeatedly criticized as biased. Directly across from him and in eyeshot is New York Attorney General Letitia James, who sits in the courtroom's gallery with her eyes fixed on the former president.

Trump, wearing a tailored navy blue suit, blue dress shirt, and blue tie, sits slightly slouched in the witness box.

"Please raise your right hand," a court officer advised Trump. "Do you solemnly swear or affirm that any testimony you give will be the truth, the whole truth and nothing but the truth?"

"I do," Trump said with his hand raised.

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