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


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Appraiser set to conclude testimony

Real estate executive Doug Larson, whose cross-examination began yesterday afternoon, is scheduled to complete his testimony this morning.

Larson, who testified yesterday that phone calls with him that were referenced in Trump Organization financial documents did not actually take place, faced hours of cross-examination yesterday by defense attorney Lazaro Fields.

Fields grilled Larson on discrepancies in the final drafts of appraisals --- a process that Larson acknowledged was less of a "science" than an "art."

Jack Weisselberg, an executive at the real estate investment firm Ladder Capital who is also the son of Trump Organization ex-CFO Allen Weisselberg, is scheduled to testify next about his work refinancing a loan of Trump's 40 Wall Street property.

"I suggest we call him Jack," said Judge Arthur Engoron, anticipating confusion regarding the actions of both Weisselbergs.


Trump's empire 'built on lies,' AG says after court ends for the day

After court adjourned for the day, New York Attorney General Letitia James offered one of her firmest repudiations of the former president's claims.

"He can call me names, he can engage in distractions, but at the end of the day ... his entire empire was built on nothing but lies and on sinking sand," James told reporters outside the lower Manhattan courthouse.

Trump has frequently targeted James in his comments during courtroom breaks, criticizing her efforts as politically motivated and pushing an unfounded theory that the case against him is part of a plot of interfere in the 2024 election.

"This is an attorney general ... that went out and campaigned on 'I will get Trump,'" Trump said before entering court this morning, repeating attacks that he's made on social media.

James fired back that her team has repeatedly demonstrated that Trump committed fraud, both in the first two weeks of the trial, as well as in Judge Arthur Engoron's pretrial ruling about Trump's fraudulent financial statements.

"He will again attempt to distract each and every one of you, attempt to raise his voice and scream," James told reporters. "But at the end of the day, justice will be served, and I'm confident that victory will be mine."


Trump leaves court early

Former President Trump did not return to court after the mid-afternoon break, leaving his attorneys alone at counsel table for the cross-examination of professional appraiser Doug Larson.

The former president departed from the lower Manhattan courthouse in his motorcade.

Trump is scheduled to sit for a deposition today related to a civil lawsuit brought by former FBI agent Peter Strzok and former FBI attorney Lisa Page. Strzok filed suit against the Justice Department and the FBI in 2019, claiming his First Amendment rights were violated when he was wrongfully terminated the year before over private text messages with Page that reflected anti-Trump sentiments.


Exec's testimony shows 'illicit agreement or scheme,' state argues

State attorney Eric Haren has filed a letter with the court arguing that Trump Organization executive Patrick Birney's testimony yesterday about Trump's net worth should be admissible.

During his testimony, Birney claimed that CFO Allen Weisselberg told him that "Mr. Trump wanted his net worth on the statement of financial condition to go up." Trump lawyer Chris Kise immediately objected to the statement as hearsay.

Judge Engoron then asked both parties to submit two-page memos by today, regarding whether the statements from Birney are hearsay.

"Regardless of its truth, Mr. Weisselberg's statement tends to show the existence of an illicit agreement or scheme," Haren wrote in his letter to the judge.

Haren argued that since Weisselberg is alleged to be a co-conspirator who carried out his "illicit objectives" through Birney, the statement should be considered admissible.


1st witness eyes Trump's decade-old financial statements

Testifying about the preparation of the Trump Organization's statements of financial condition in 2011, former Mazars USA accountant Donald Bender said Trump executives largely provided the input data for statements, in addition to dictating the standards by which the work was completed.

"We would cut and paste that information into a new worksheet," Bender said about the approach taken by Mazar after receiving new data from co-defendant Jeffrey McConney of the Trump Organization.

When asked about the compliance with the Generally Accepted Accounting Principles -- which Bender testified are the standards for accounting in the United States -- Bender repeatedly placed responsibility in the lap of the Trump organization.

"That was the Trump Organization's responsibility," Bender testified about GAAP compliance.

Bender acknowledged that he rarely questioned the inputs from the Trump Organization, and when he did, he largely dealt with McConney and executives other than Trump and his adult sons.

Repeatedly asked by the state attorney if Mazars would have issued the statements if they had known the Trump Organization included material misrepresentations in their data, Bender reiterated that Mazars would not have issued the statements.

When Judge Engoron remarked at the end of the trial day that the state would still need to present further evidence to prove that the 2011 statement was within the statute of limitations, Trump seized the statement as a partial victory.

"The last five minutes was outstanding, because the judge actually conceded that the statute of limitations … is in effect," Trump told reporters as he was leaving court.

Engoron, however, did not completely rule out the 2011 evidence during trial, instead appearing to remind counsel that they need to show the 2011 statement represents an ongoing concern that falls within the statute of limitations.

Testimony is scheduled to resume on Tuesday at 10 a.m. ET.