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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Trump, following closed proceedings, says he'll be back Wednesday

Former President Trump told reporters he plans to return to court on Wednesday as he left the courtroom following a closed proceeding Tuesday afternoon.

Judge Arthur Engoron held multiple closed proceedings during the afternoon after issuing a warning to Trump not post anything to social media about his staff.

Neither Trump nor New York Attorney General Letitia James answered questions about the nature of the closed sessions when they left the courthouse at the end of the day.

Earlier, Mazars accountant Donald Bender underwent a forceful cross examination by Trump lawyer Jesus Suarez. Mixing criticism of Bender with praise of Trump -- who Suarez described as "the leader of the free world" and "possibly even the 47th president of the United States" -- Suarez attempted to paint Blender as an incompetent accountant who "messed up" and landed Trump in court.

As part of his cross examination, Suarez questioned Bender about why he failed to raise concerns about Trump inaccurately overstating the size of his triplex apartment in Manhattan's Trump Tower.

"Do you think two thirds of his [triplex] disappearing is not something you should have said to the leader of the free world?" Suarez asked during a portion of his questioning that was so theatrical that it prompted occasional laughter in the courtroom.


Judge admonishes Trump after he posts about clerk

As court resumed after the lunch break, Judge Engoron admonished Donald Trump for a post he made this afternoon on his Truth Social platform regarding Engoron's clerk, Alison Greenfield.

"Personal attacks on members of my court staff are unacceptable and inappropriate. Consider this statement a gag order forbidding all parties from posting, emailing or speaking publicly about any of my staff," the judge said in his admonishment.

The post, which included a photo of Greenfield with Senate Majority Leader Chuck Schumer, made unsubstantiated claims about her connections with Schumer and falsely claimed that Greenfield is "running" the case against Trump.

Trump apparently made the post, which linked to Greenfield's Instagram account, while the former president was sitting in the courtroom.

The post was deleted shortly before the judge's admonishment, but it was up for at least an hour and a half. Engoron lamented that the sentiment was shared to millions.

The judge did not mention Trump by name but noted the post came from one of the defendants.

Greenfield sits at the bench to Engoron's immediate right and the judge is often seen conferring with her over legal and logistical matters.

In a statement, Schumer spokesperson Allison Biasotti called Trump's post "ridiculous, absurd, and false," saying that "Sen. Schumer does not know Ms. Greenfield. As is well known, Sen. Schumer attends countless events in every corner of the state where tens of thousands of constituents take photos with him, just like this one, which was taken at a stop at an annual brunch in Manhattan.”

-ABC News' Peter Charalambous, Aaron Katersky, Soo Rin Kim, Lalee Ibssa and Kendall Ross


Trump says he's attending trial to 'expose' AG

Former President Donald Trump said he is attending his civil trial to "expose" New York Attorney General Letitia James, during an exchange with ABC News.

Asked by ABC News' Aaron Katersky why he was attending the trial even though he's not required to be there, Trump replied, "Because this trial is a rigged trial. It's a fraudulent trial."

"The attorney general is a fraud, and we have to expose her as that," Trump said after exiting the courtroom for the afternoon break. "You see what's going on. It's a rigged deal."

James has said of her probe, "No matter how powerful you are, no matter how much money you think you may have, no one is above the law."

The statements from Trump follow the conclusion of the state's lengthy direct examination of longtime Mazars accountant Donald Bender, who testified about the procedures Mazars and the Trump Organization used to compile a central piece of evidence in the case -- Trump's statements of financial condition between 2011 and 2020.

Trump appeared attentive during the testimony, often studying the exhibits displayed on the court's screens -- including a recurring spreadsheet titled "Jeff Supporting Data" prepared by co-defendant and Trump Organization executive Jeffrey McConney, which contained the source information for the financial statements.

Bender testified about a specific red notation spelled "PBC" that appeared on the Excel file across multiple years. The notation -- indicating that the files were "Prepared By [the] Client" -- seemed to emphasize how much of the accounting was done by the Trump Organization rather than Mazars.

Testifying about letters of representation issued by the Trump Organization in support of the statements, Bender addressed specific language in the letter stating that the Trump Organization had included all the relevant records and data needed for the statements.

"We have not knowingly withheld from you any financial records or related data that in our judgment would be relevant to your compilation," the letter read.

But Bender testified that he later learned that meaningful information was indeed omitted -- information he said he learned in 2021 during meetings with prosecutors.

When asked repeatedly if Mazars would have issued the statements if they knew the Trump Organization had withheld information, Bender repeated that Mazars would not have issued the statements.

-ABC News' Aaron Katersky, Jack Feeley and Peter Charalambous


Judge mixes focus, humor on the bench

Justice Arthur Engoron appears to be enjoying his time overseeing the trial today, including correcting the attorneys for the state on minor issues.

"The correct word is withdrawn, not strike," Engoron interjected at one point, after a state attorney attempted to "strike" the record so he could rephrase a statement.

Later, Engoron smiled and signaled a thumbs-up when the same attorney adjusted his language and "withdrew" his words from the record to rephrase.

The veteran justice, who has served on the bench in New York for more than 20 years, has a reputation as a reliable albeit unusual judge, according to past and former associates.


Bank relied on Trump's financial statement to secure loan

Deutsche Bank relied on the strength of Donald Trump's "financial profile" when deciding to loan the former president roughly $125 million related to the purchase of the Trump National Doral golf club in 2011, according to retired Deutsche Bank executive Nicholas Haigh.

Haigh testified that because Trump used the golf course and spa as collateral -- relatively "unusual" assets that Deutsche Bank would struggle to sell in the event of a foreclosure -- the bank leaned on the strength of Trump's larger portfolio.

"[Trump] is guaranteeing he will repay our loan -- all the money due on the loan," Haigh said about the terms of the loan. "He is also guaranteeing if the result is losing money, he will pay the cost of that shortfall."

Haigh said that he personally reviewed Trump's statement of financial condition when determining whether to sign off on the loan.

"My conclusion was the client owned a lot of real estate, which was not surprising," Haigh said about his findings after reading Trump's financial statement.

Previous witnesses in the trial have offered insights into how Trump's annual financial statement was drafted, finalized, and provided to banks to fulfill loan obligations. Haigh is the first witness to testify from the perspective of the banks, which considered the statements when deciding whether to do business with Trump.