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 attorney accuses judge of 'double standard'

After a relatively calm day, tensions flared between Judge Engonon and Trump lawyer Chris Kise, after Kise accused the judge of applying a "double standard" to the defense team.

Defense attorney Jesus Suarez attempted to question Ivanka Trump about a document from the General Services Administration, prompting an objection from state attorney Louis Solomon, who argued that Suarez lacked the foundation to ask about the document.

"I've objected hundreds of times now," an exasperated Kise said, arguing that the state attorneys used documents with less foundation provided.

"I continually object to your constant insinuation that I have some sort of double standard. It's just not true," Engoron replied forcefully.

Ivanka Trump, sitting feet away from Engoron, appeared to watch the exchange in disbelief.

"I wish it were different. I respect your honor's position. I just see these ruling ... frequently going in a different direction," Kise said.

"Their objections have been of greater validity than yours," Engoron shot back.


Ivanka Trump says father had 'deep and nostalgic love' of golf course

Following a sometimes-tense direct examination by state attorney Louis Solomon, Ivanka Trump is speaking more comfortably, showing more emotion, and offering more lengthy answers to questions during cross examination.

Asked about why the Trump Organization worked with Deutsche Bank to secure financing for its purchase of the Doral golf club in Miami, she spoke wistfully about the property.

"My father had a deep and nostalgic love for that particular property," she testified.

"He told me he took my mother there," she said with a smile, recalling her father bringing her there when she was a child.

"They were really impressed by what we had done over the course of several years in terms of upgrading and refurbishing the property," Ivanka Trump said.


Banks sought to promote ties to Trump Organization, says defense

Deutsche Bank sought to promote its ties to the Trump Organization in marketing materials a decade ago, according to emails shown in court during Ivanka Trump's ongoing cross-examination.

Trump attorney Jesus Suarez showed the emails to demonstrate a key pillar of their defense: that the state's allegations were victimless, and in fact, rather than getting bilked in loan agreements, bankers appreciated -- and even competed for -- the Trump Organization's business.

"I was constantly told by Rosemary and her team how much they appreciated our relationship and ... seeking to grow it," Ivanka Trump testified regarding Deutsche Bank executive Rosemary Vrablic.

Deutsche Bank asked Ivanka Trump to appear in promotional videos for their firm, the emails suggested.


Ivanka Trump says she received $4 million from sale of building

Ivanka Trump acknowledged that she personally received more than $4 million from the Trump Organization's sale of the Old Post Office building in Washington, D.C., last year.

In total, she received $4,013,204 in profit after the building was sold in 2022, according to a document shown in court.

"That is consistent with my recollection, yes," Ivanka Trump said.

New York Attorney General Letitia James had pledged to show that Ivanka Trump personally profited from the fraud the AG says is at the center of the case.

Ivanka Trump has now completed her direct examination and is being cross-examined by defense attorney Jesus Suarez.

Under cross-examination, she repeated that she was not involved with reviewing, approving, or providing values for her father's financial statements, which state attorneys say contained fraudulent valuations.


Defense asks judge to reconsider gag order fine

Defense attorney Chris Kise requested that Judge Engoron again reconsider his decision to fine Donald Trump $10,000 for violating the case's limited gag order yesterday, offering a broader criticism of the gag order based on First Amendment grounds.

"This is open, public, and the defendant has a First Amendment right to comment on what he sees and perceives as a potential source of bias," Kise said.

Like yesterday, Kise maintained that Trump was referring to Michael Cohen, rather than the judge's law clerk, during his hallway statement in which he said the judge has a "person who is very partisan sitting alongside of him." Trump attested to this on the stand yesterday, though Engoron found that Trump was "not credible."

"The review of the statement does not support the sanction," Kise said.

Even if Trump was referring to the clerk, Kise made a broader argument that the gag order itself was "constitutionally infirm," considering Trump is the "leading candidate" for the presidency.

"I don't think that the order survives constitutional scrutiny," Kise said.

State attorney Andrew Amer argued in support of the gag order, which he said was narrowly limited to withstand constitutional scrutiny.

"A federal judge in D.C. has issued a similar order to protect herself," Amer added, referring to a ruling in Trump's election interference case.

Judge Engoron said he would reconsider the fine but stood by his gag order.