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.
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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
With gag order lifted, Trump blasts judge's clerk online
Hours after an appeals court temporarily lifted a gag order that prohibited Donald Trump from commenting about court staff in his civil fraud trial, the former president criticized Judge Arthur Engoron's law clerk on social media.
Describing the gag order as "Ridiculous and Unconstitutional," Trump applauded the appeals court for its decision and described Engoron's clerk as "politically biased and out of control."
Engoron issued the limited gag order after Trump made a false social media post about the clerk last month. This evening's post marked the first time Trump has explicitly mentioned her since then.
Trump also attacked New York Attorney General Letitia James, calling her a "worldwide disgrace," and his former attorney Michael Cohen, who testified against him during the trial.
Engoron ends day without addressing gag order
After attentively watching the testimony of the defense's real estate expert Steven Laposa, Judge Engoron adjourned court for the day without referencing the stay of his limited gag order issued this afternoon by an appellate court.
The judge's clerk -- who was the subject of Trump's false social media post that triggered Engoron's limited gag order last month -- remained in her regular seat next to the judge after the ruling came down.
Court will resume with Laposa back on the stand Friday.
Real estate expert describes NY AG's approach as 'flawed'
The New York attorney general's approach to valuing Donald Trump's properties was "flawed," according to testimony from the defense's real estate expert Steven Laposa.
Laposa said that the attorney general's complaint relied on a market value analysis of Trump's properties, rather than the investment value of the assets, which would consider the asset's value based on an individual's investment requirements instead of market norms.
"In my opinion, it's flawed," Laposa said about the attorney general's findings.
Judge Arthur Engoron appeared attentive during Laposa's testimony, overruling an objection from the state that would have limited the scope of his testimony.
"I want to hear what he says about evaluations," Engoron said.
Defense teams applauds lifting of gag order
Defense attorney Alina Habba, speaking to reporters outside court, said that an appellate judge's decision to temporarily stay Judge Engoron's limited gag order on Donald Trump would allow the defense team to continue raising issues with the conduct of Engoron's clerk.
Habba also said she saw no reason to advise Trump to refrain from attacking the clerk now that the gag order has been stayed -- despite Judge Engoron's concerns about his staff facing threats.
"There is not a day that I don't get a threat. It's just part of the game," Habba said. "If I put something out on social media, and I get a threat for it, which has happened to me every single day, I don't get to cry."
"Ms. James is continuing to disparage my client," Habba said, referring to New York Attorney General Letitia James, who filed the lawsuit against Trump. "And they were grasping at straws for a reason to say that the president should be gagged. There was no reason."
James did not ask for the gag order, which was issued by Judge Engoron last month out of concern for the safety of his staff after Trump made a false post about his clerk on social media.
Accounting expert to resume after Trump testifies Monday
New York University accounting professor Eli Bartov will have to return to court on Tuesday to conclude his testimony, after his direct examination ran longer than expected.
After Bartov's direct examination concluded, state attorney Louis Solomon began his cross-examination -- but the parties agreed to adjourn for the day and resume the cross-examination next week.
Donald Trump is scheduled to be the only witness on Monday.
Once Bartov concludes his testimony, New York Attorney General Letitia James plans to present a brief rebuttal case.