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
Trump lauds 'beautiful daughter' ahead of Ivanka's testimony
Former President Donald Trump has renewed his attacks on New York Attorney General Letitia James and Judge Arthur Engoron ahead of testimony this morning from his daughter Ivanka Trump, who is expected to be the last witness in the state's case before the defense begins presenting its case.
"My wonderful and beautiful daughter, Ivanka, is going to the Lower Manhattan Courthouse, at the direction of Letitia Peekaboo James ... and a Trump Hating, out of control Clubhouse appointed Judge, Arthur Engoron, who viciously ruled against me before the trial even started," Trump wrote on Truth Social, referring to the judge's partial summary judgment against the defendants.
Donald Trump's lawyers also plan to question Ivanka Trump -- a notable departure after they declined to cross-examine Donald Trump and his adult sons when they testified.
"We are certainly going to ask her questions, to the extent we have questions," Trump's attorney Chris Kise said on Monday. "We are trying to get that done now so as to minimize the interference in her life to not have to come back again."
James says Trump's testimony doesn't change evidence
New York Attorney General Letitia James, speaking to reporters after court had adjourned, said that Trump's testimony didn't change her case.
"He rambled, he hurled insults, but we expected that," James said. "At the end of the day the documentary evidence demonstrated that, in fact, he inflated his net worth."
The New York AG said she "will not be bullied."
"I will not be harassed -- this case will go on," she said.
Defense says it will finish presenting its case by Dec. 15
Donald Trump's lawyers plan to present a defense case that would conclude by Dec. 15, defense lawyer Chris Kise said.
Before court concluded today, Judge Engoron also advised Trump's lawyers that he would not respond positively to a motion for mistrial based on the actions of his clerk who Trump's attorneys have accused of being biased against the defense and improperly influencing the trial.
"I am directing you not to make that motion," Engoron initially said -- but then he backtracked.
"We obviously are going to be moving for a mistrial -- that is part of the plan. [But] we do not want to put anyone at risk," Trump's lawyer Alina Habba said, requesting clarity about how they can move for a mistrial without violating the case's gag order that prohibits parties from making public statements about the judge's staff.
"You can make that motion. And I'm sorry I yelled at you before," Engoron told Habba.
Court is set to resume on Wednesday with testimony from Ivanka Trump.
Trump steps down from witness stand
After testifying on and off for five hours, Donald Trump has stepped down from the witness stand after completing his direct examination.
State attorney Kevin Wallace concluded his questions by asking Trump about his former CFO Allen Weisselberg, who pleaded guilty to tax evasion, and about internal controls at the Trump Organization.
Weisselberg served three months for tax fraud after he pleaded guilty to 15 felony charges related to his compensation while working for Trump.
"People went after him viciously and violently because he worked for me," Trump said.
Trump said he only learned about Weisselberg's illegal conduct because of the Manhattan district attorney's criminal probe into the Trump Organization and Weisselberg.
"I feel very badly for him," Trump said. "He did a good job for me for a long time."
Regarding the current court case, Wallace asked, "Do you think anything needs to change at the Trump Organization because of what you learned from this lawsuit?"
"I don't think so," Trump said, but suggested he would defer to his new accounting firm.
"We will see if anything will come of it," he said.
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.