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.

Top headlines:

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

Dec 06, 2023, 4:42 PM EST

Potential for violence justifies gag order, judge's lawyer argues

Judge Arthur Engoron's attorney argues in a new court filing that the willingness of Donald Trump's followers "to engage in violence to show their support" for Trump justifies the limited gag order in the former president's civil fraud trial.

Trump filed an Article 78 proceeding against Engoron earlier this month to remove the gag orders the judge imposed prohibiting him from commenting on the judge's staff, but a panel of judges vacated a temporary stay of the gag orders last week.

"It is undisputed that Mr. Trump has an inordinate ability to draw attention, fervor, and animosity to those he singles out for attention. Whether he seeks it or not, some of Mr. Trump's followers are willing to engage in violence to show their support," said Engoron's attorney Michael Suidzinski, an assistant deputy counsel with the New York State Office of Court Administration.

Engoron's attorney questioned Trump's need to speak about the judge's staff during the trial or his campaign, adding that the gag order still permits him to criticize Engoron, the attorney general, the case itself, witnesses, and the entire judicial process.

"It is unclear, however, how his ability to talk about Justice Engoron's court staff is necessary for his campaign when this country faces a number of issues more worthy of debate," Suidzinski wrote.

"Given the real and demonstrated likelihood of harm that could come to Justice Engoron's court staff if the gag orders were annulled, Justice Engoron's legitimate and justifiable interest in preventing such harm greatly outweighs the de minimis interference to Mr. Trump's rights," Suidzinski wrote.

Dec 06, 2023, 12:07 PM EST

Court is off today after Eric Trump's testimony is called off

Court is not in session today after the defense yesterday called off the testimony of Eric Trump, who was scheduled to be today's lone witness.

Donald Trump's legal spokesperson, Alina Habba, said that testimony from Eric Trump was no longer needed because the court has heard sufficient testimony from defense experts and Deutsche Bank executives.

Eric Trump, who took the stand in the state's case last month, was scheduled to testify for the defense today -- but defense lawyers abruptly called off his testimony yesterday in order to streamline their case, defense attorney Clifford Robert said in court yesterday.

"Although Eric Trump was certainly prepared to testify again, his testimony is no longer necessary. He has already testified fully and well in the case," Habba said.

In a social media post Tuesday night, Donald Trump said he directed Eric not to testify.

"I told my wonderful son, Eric, not to testify tomorrow at the RIGGED TRIAL," Trump wrote.

Dec 06, 2023, 11:02 AM EST

Trump confirms he'll testify Monday

Former President Trump has confirmed he plans to testify as a defense witness on Monday.

"I will be testifying on Monday," Trump wrote on his social media platform.

Court is not in session today, but Trump is expected to be in attendance tomorrow.

Trump's plan to testify was thrown into question on Tuesday after Judge Arthur Engoron denied a request from the defense to delay the testimony to accommodate Trump's effort to appeal the limited gag order in the case that prohibits him from commenting on the judge's staff.

"He is not capable of fully testifying because he is subject to the gag order," Kise said, arguing for a delay.

"Absolutely not. No way, no how. It's a nonstarter," Engoron said in response to the defense's request for a delay. "If he is going to testify, it'll be Monday, and that's that."

While Trump's lawyers have attempted to appeal the limited gag order to a higher court, their application to expedite the appeal was denied on Monday, ensuring that the limited gag order will be in place when Trump testifies.

During a campaign stop in Iowa, Trump repeated his claims that his opponents are trying to silence him, describing the gag order as an "honor."

"In many ways, it's an honor because if they wanted to hear me speak, they wouldn't do the gag order," Trump said.

When asked if he's concerned about his scheduled court testimony, Trump said "No, not at all."

Trump is set to be the final witness for the defense case when he testifies on Monday.

ABC News' Soorin Kim and Lalee Ibssa contributed to this report.

Dec 05, 2023, 5:04 PM EST

Defense expert quotes John Lennon, compares Trump to MLK

Prior to his brief cross-examination, real estate valuation expert Lawrence Moens quoted John Lennon's "Imagine" and compared Donald Trump to Martin Luther King Jr. at the conclusion of his direct testimony.

"You may say I am a dreamer, but I'm not the only one," Moens said, quoting the "Imagine" lyrics before comparing Trump to Thomas Jefferson and Martin Luther King Jr.

"He's a dreamer for sure. If you have a dream and are a great American, I don't think that's a bad thing," Moens said of Trump, whose Mar-a-Lago estate he praised as "something breathtaking" and "amazing to see."

Moens' cell phone went off during his testimony, and he briefly interrupted his direct examination to answer a call.

"I'll call you right back … love you," Moens said in a quiet tone as Judge Engoron watched in disbelief.

Moen apologized to the judge, explaining that the call was from his elderly father.

Court was adjourned for the day after Moens stepped off the witness stand.

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