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

The former president was found to have defrauded lenders.

Last Updated: October 10, 2023, 12:01 PM EDT

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

Oct 10, 2023, 11:55 AM EDT

Weisselberg concedes Trump's triplex is smaller than valuation

Former Trump Organization CFO Allen Weisselberg testified that Trump's triplex apartment in Trump Tower is 10,996 square feet -- which is a third the size that Trump claimed on financial documents.

In October 1994, Trump signed a document that certified his penthouse triplex is 10,996 square feet, but his statements of financial condition for several years beginning in 2012 listed the apartment as 30,000 square feet.

An attorney with the New York attorney general's office showed the page with Trump's signature to Weisselberg, who appeared to struggle to explain the discrepancy.

"It was always in my mind a de minimis asset on the statement of financial condition," Weisselberg said. "I never even thought about the apartment."

Allen Weisselberg, Donald Trump's longtime finance chief, left, sits inside New York Supreme Court, Oct. 10, 2023, in New York.
Seth Wenig/AP

Louis Solomon of the attorney general's office confronted Weisselberg with emails from Forbes magazine seeking clarity about the apartment's size, as well as a letter signed by Weisselberg certifying the 30,000 square foot figure to the Trump Organization's then-accountant, Mazars USA.

Weisselberg offered a lengthy take on the discrepancy, prompting Judge Arthur Engoron to intercede.

"Your role is to answer the questions, not to give speeches. Please just answer the questions," Engoron said.

"Forbes was right, the triplex was actually only 10,996, right?" Solomon asked.

"Right," Weisselberg finally conceded.

"I've been through quite a bit the last two years," Weisselberg said at one point during the morning's questioning. The former CFO moved to Florida following three months in jail after he pleaded guilty last year to criminal fraud charges and subsequently testified against the Trump Organization.

Oct 10, 2023, 9:47 AM EDT

Weisselberg to be questioned about valuations

Ex-Trump CFO Allen Weisselberg is expected to face questions this morning about his work valuing properties like Trump's triplex apartment in Trump Tower and Trump's 40 Wall Street building, as well as the Trump Organization's efforts to secure loans from banks and Weisselberg's direct conversations with the former president.

Weisselberg is the second named defendant to testify in the ongoing civil trial.

Trump Organization controller and co-defendant Jeffrey McConney, who concluded his testimony on Friday, was deemed a hostile witness by Judge Arthur Engoron, giving the state more latitude in their questions.

Oct 10, 2023, 9:08 AM EDT

Ex-CFO Weisselberg last year pleaded guilty to tax fraud

Ex-Trump Organization CFO Allen Weisselberg's expected testimony this morning comes six months after he was released from New York City's Rikers Island jail complex after pleading guilty last year to 15 felony charges related to a long-running scheme to avoid $1.7 million in taxes while working for the Trump Organization.

As a condition of his plea deal, Weisselberg testified last year in the Manhattan district attorney's criminal trial of the Trump Organization itself.

"Are you embarrassed about what you did?" Trump Organization attorney Alan Futerfas asked Weisselberg during the criminal trial last November.

"More than you can imagine," replied Weisselberg, who testified that Trump himself was unaware of his tax evasion scheme.

The Trump Organization was convicted and later paid a $1.6 million fine imposed by the judge overseeing the case.

Oct 10, 2023, 8:22 AM EDT

Ex-Trump CFO Allen Weisselberg expected to take stand

Former Trump Organization chief financial officer Allen Weisselberg is expected to testify when former President Donald Trump's civil fraud resumes this morning.

A named defendant in the case alongside Trump and his adult sons, Weisselberg allegedly supervised and approved the inflated valuations in Trump's financial statements at the center of the state's case, according to state attorneys.

Former Trump Organization Executive Allen Weisselberg arrives for a sentencing hearing at Manhattan Criminal Court on Jan. 10, 2023, in New York City.
Michael M. Santiago/Getty Images

He's also alleged to have personally met with the former president each year between 2011 and 2016 to review and get approval for the fraudulent financial statements.

"Mr. Trump made known through Mr. Weisselberg that he wanted his net worth on the Statements to increase -- a desire Mr. Weisselberg and others carried out year after year in their fraudulent preparation of the Statements," New York Attorney General Letitia James wrote in her initial complaint.

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