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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Donald Trump Jr. and Eric Trump arrive at courthouse

Donald Trump Jr. and Eric Trump have arrived together at the New York State Supreme Courthouse for their testimony today.

Trump Jr. is scheduled to complete his testimony from yesterday, after which Eric Trump is scheduled to take the stand.

New York Attorney General Letitia James arrived shortly after the Trumps and took a seat in the courtroom.


Trump Jr. has helped run family's business for a 'long time,' AG says

As Donald Trump Jr. prepares to return to the witness stand this morning, New York Attorney General Letitia James says the Trump Organization executive VP has been been with the Trump Organization for a long time for someone who appears to have so little understanding of the business.

In a video posted to social media last night following Trump Jr.'s first day of testimony, James said the eldest son of former President Trump "claimed to have very little understanding of the accounting and legal mechanics of the family business -- but we know he has been involved in running the Trump Organization for a long time."

Trump Jr. testified yesterday that he relied on the expertise of others when he signed his father's statements of financial condition, distancing himself from the documents at the heart of the attorney general's case.

While he acknowledged that he had some of the "the most intimate knowledge" about some of the deals described in the statements, Trump Jr. reiterated that he did not have a role in putting the documents together.

"The accountants worked on it. That's what we pay them to do," Trump Jr. said.

Trump Jr. will return to the witness stand this morning, with his bother Eric Trump on deck to testify later today.


'I wasn't involved' preparing financial statements, Trump Jr. says

Before stepping down from the witness stand at the end of the afternoon, Donald Trump Jr. was asked repeatedly about his involvement in the Trump Organization's statements of financial condition -- the allegedly fraudulent documents that underpin the attorney general's case.

Trump Jr., who signed and certified the accuracy of the statements while his father was president between 2016 and 2021, said that he was not involved in preparing the filings.

"I wasn't involved in the compilation of this statement of financial condition," Trump Jr. said, placing the responsibility on his accountants.

"Did you work on the statement of financial condition for June 30, 2017?" state attorney Colleen Faherty asked.

"I did not. The accountants worked on it. That's what we paid them to do," Trump Jr. said.

Throughout the afternoon, the tone of the proceedings alternated rapidly between lighthearted and heated, varying from playful interactions between Trump Jr. and Judge Engoron, to bitter spats between some of the lawyers.

"I know you don't like it when good evidence comes in," Faherty told the defense lawyers during one particularly heated exchange.

"There's no reason to raise your voice," Donald Trump Jr.'s lawyer, Clifford Robert, responded.

Trump Jr. is scheduled to return to the stand tomorrow morning.


Trump Jr. to resume testimony tomorrow

Donald Trump Jr. has stepped down from the witness stand.

He is due to return to the courtroom tomorrow morning to resume his direct examination.

Court is now adjourned for the day.


Defense expert says Mar-a-Lago was worth $1.2 billion

Donald Trump's Mar-a-Lago Club was worth more than $1.2 billion in 2021 -- roughly double the value listed in Trump's statement of financial condition -- according to defense expert Lawrence Moens.

Describing Mar-a-Lago as a castle nestled on 17.6 acres of waterfront property, Moens said he determined the value by considering nearby properties and adding the total value of the club's 500 memberships, which in 2021 cost $350,000 each.

Between 2011 and 2021, Moens' analysis found that Trump undervalued Mar-a-Lago in his statements of financial condition -- but his analysis appeared to be based on Trump being able to sell the property to an individual to use it as a private residence, which the New York attorney general says Trump is prohibited from doing based on a 2002 deed he signed that would "forever extinguish their right to develop or use the Property for any purpose other than club use."

Judge Engoron only qualified Moens as an expert on the value of residential real estate.

Moens spoke with confidence about his ability to value real estate in Palm Beach, saying that he has sold billions of dollars of real estate since his first sale as a broker in 1982. Asked if any broker has sold more Palm Beach real estate than he has, Moens replied, "They don't exist."

"I am on the front lines everyday of selling properties, and I have a pretty good handle of what is going on currently in the market," Moens said. He later added, "My numbers are usually right."

Moens also put together a seven-minute promotional video about Mar-a-Lago, which was played during his testimony. Set to relaxing music, the video included high-resolution drone shots and dramatic panning shots of the property's amenities. After the video played, Moens highlighted details such as hand-carved stones, gold decorations that cost millions to construct, and other details that required years of work from tradesmen.

"I invited the attorney general's office to come see it anytime. The offer still stands," Moens said. "I will make sure he is not there when you come," he said of Trump.

Engoron appeared attentive to Moen's testimony -- but once Moens left the courtroom, he indicated that he wasn't as concerned about Mar-a-Lago's specific value as he was about whether it was misrepresented.

"I see this case about the documents -- whether the defendants used false documents when transacting business," Engoron said. "I am not trying to figure out what the value is ... I don't necessarily consider it relevant."