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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'We're a nation in decline,' Trump says

Addressing reporters in the hallway before he entered the courtroom, Trump spoke about the current House speaker race, his former chief of staff Mark Meadows, and his false allegations of a rigged election.

"We're a nation in decline, all because of a rigged and stolen election," Trump said before entering court for the resumption of Michael Cohen's cross-examination.

Before Cohen returned to the stand, defense attorney Alina Habba requested that Judge Engoron and his clerk refrain from any distracting behavior.

"It is incredibly distracting when there are eye rolls and constant whispering at the bench," said Habba, who added that the judge she clerked for earlier in her career was "very strict."


Manhattan prosecutors watching Cohen's testimony

Susan Hoffinger, who is leading Manhattan District Attorney Alvin Bragg's criminal hush money case against Donald Trump, is attendance at the trial this morning. With Cohen serving as a key witness in that case, Hoffinger also was in court yesterday to hear Cohen's direct examination.

New York Attorney General Letitia James is also back in the courtroom for the second day of Cohen's testimony.

Seated in the gallery behind her team of lawyers, James encounters Trump each time he enters and exits the courtroom, though it appears the two rarely make eye contact.


Michael Cohen to return to witness stand

Former Trump attorney Michael Cohen is set to face a grueling day of cross examination, as defense lawyers attempt to discredit him after his potentially damaging testimony yesterday.

Calm and confident when answering questions from a state lawyer, Cohen dealt a blow to his former boss early in his testimony yesterday when he said he "reverse engineered" Trump's financial statements to "achieve the number" Trump wanted, inflating the values of assets such as Trump Park Avenue, Trump World Tower, and the Miss Universe Pageant to achieve Trump's desired figure -- though his testimony was notably devoid of notes, communications, or draft financials to support his claims.

Trump's lawyer Alina Habba hammered at Cohen's inconsistencies during the first hour of cross-examination, confronting Cohen with his past guilty pleas and history of false testimony. A disbarred lawyer, Cohen's answers grew combative at times, often responding to questions with "objection" or "asked and answered."

Trump said in a Truth Social post this morning that he plans to attend court for a second day in a row. In a social media post overnight, he described Cohen's testimony yesterday as a "complete and total disaster."

New York Attorney General Letitia James offered a contrasting opinion of Cohen's testimony in a video statement posted to social media.

"Donald Trump lives in a fantasy land. He directed those around him to lie and scheme to make his fantasy a reality," James said.


Cohen combative during forceful cross-examination

Michael Cohen underwent a forceful cross-examination by Trump attorney Alina Habba in the day's final court session.

"You are not on Mea Culpa. You are not on your podcast, and you are not on CNN. You're here with me," Habba instructed Trump's former attorney during the questioning.

Compared to Cohen's direct examination -- when Trump could often be seen conferring with the lawyers by his side, examining exhibits, or passing notes around -- Trump had a more positive demeanor during the cross.

Cohen himself grew combative at parts of the questioning, responding "objection" and "asked and answered" as if he were a lawyer at counsel table, rather than a witness on the stand.

"You have lied under oath numerous times, isn't that correct, Mr. Cohen?" Habba asked at one point.

"That is correct," Cohen replied.

Habba even admitted that she was enjoying herself during the questioning, after Judge Engoron offered to cut testimony short for the day.

"It is entertaining -- I am happy to go all night," Habba said.

Exiting court at the end of the afternoon, Cohen declined to comment about the ongoing cross-examination.

"He's a disgraced felon, and that's the way it's coming out," Trump said on his way out.


Appraisals didn't necessary equate to value, controller says

Longtime Trump Organization controller Jeffrey McConney, in response to the New York attorney general's allegations that the Trump Organization ignored multiple appraisals that would have significantly decreased the value of their assets, testified that some appraisals had specific purposes outside of valuing properties.

"They are done for a specific purpose," McConney said, acknowledging that some appraisals valued overall properties while others were specifically ordered for limited tax purposes.

"Just because an appraisal was done, does not mean it reflects the value of that property," McConney said, explaining that appraisals related to conservation easements were "not done to value the property."

McConney appeared to acknowledge that the Trump Organization choose to ignore a 2015 appraisal that valued its 40 Wall Street property at $540 million, while Trump valued the property in his financial statement at $735 million.

"We didn't think this valuation property reflected what the building was worth," McConney said.

Asked if the Trump Organization provided the appraisal to their outside accountant Donald Bender of Mazars USA, McConney responded, "If he wanted them, he could have had them."