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
Court is off today after Eric Trump's testimony is called off
Court is not in session today after the defense yesterday called off the testimony of Eric Trump, who was scheduled to be today's lone witness.
Donald Trump's legal spokesperson, Alina Habba, said that testimony from Eric Trump was no longer needed because the court has heard sufficient testimony from defense experts and Deutsche Bank executives.
Eric Trump, who took the stand in the state's case last month, was scheduled to testify for the defense today -- but defense lawyers abruptly called off his testimony yesterday in order to streamline their case, defense attorney Clifford Robert said in court yesterday.
"Although Eric Trump was certainly prepared to testify again, his testimony is no longer necessary. He has already testified fully and well in the case," Habba said.
In a social media post Tuesday night, Donald Trump said he directed Eric not to testify.
"I told my wonderful son, Eric, not to testify tomorrow at the RIGGED TRIAL," Trump wrote.
Trump confirms he'll testify Monday
Former President Trump has confirmed he plans to testify as a defense witness on Monday.
"I will be testifying on Monday," Trump wrote on his social media platform.
Court is not in session today, but Trump is expected to be in attendance tomorrow.
Trump's plan to testify was thrown into question on Tuesday after Judge Arthur Engoron denied a request from the defense to delay the testimony to accommodate Trump's effort to appeal the limited gag order in the case that prohibits him from commenting on the judge's staff.
"He is not capable of fully testifying because he is subject to the gag order," Kise said, arguing for a delay.
"Absolutely not. No way, no how. It's a nonstarter," Engoron said in response to the defense's request for a delay. "If he is going to testify, it'll be Monday, and that's that."
While Trump's lawyers have attempted to appeal the limited gag order to a higher court, their application to expedite the appeal was denied on Monday, ensuring that the limited gag order will be in place when Trump testifies.
During a campaign stop in Iowa, Trump repeated his claims that his opponents are trying to silence him, describing the gag order as an "honor."
"In many ways, it's an honor because if they wanted to hear me speak, they wouldn't do the gag order," Trump said.
When asked if he's concerned about his scheduled court testimony, Trump said "No, not at all."
Trump is set to be the final witness for the defense case when he testifies on Monday.
ABC News' Soorin Kim and Lalee Ibssa contributed to this report.
Defense expert quotes John Lennon, compares Trump to MLK
Prior to his brief cross-examination, real estate valuation expert Lawrence Moens quoted John Lennon's "Imagine" and compared Donald Trump to Martin Luther King Jr. at the conclusion of his direct testimony.
"You may say I am a dreamer, but I'm not the only one," Moens said, quoting the "Imagine" lyrics before comparing Trump to Thomas Jefferson and Martin Luther King Jr.
"He's a dreamer for sure. If you have a dream and are a great American, I don't think that's a bad thing," Moens said of Trump, whose Mar-a-Lago estate he praised as "something breathtaking" and "amazing to see."
Moens' cell phone went off during his testimony, and he briefly interrupted his direct examination to answer a call.
"I'll call you right back … love you," Moens said in a quiet tone as Judge Engoron watched in disbelief.
Moen apologized to the judge, explaining that the call was from his elderly father.
Court was adjourned for the day after Moens stepped off the witness stand.
Mar-a-Lago valuation expert is also Mar-a-Lago member
During a short cross-examination of the defense's real estate valuation expert, Lawrence Moens, state attorney Kevin Wallace attempted to highlight flaws in Moens' analysis that valued Mar-a-Lago at $1.2 billion in 2021.
Wallace noted that Moens' analysis added over $100 million in membership dues to the value of the property, while Trump's own statements of financial conduction didn't include the membership fees since they're refundable.
"Some get paid back, and some are nonrefundable," Moens said in response. "I don't know what their methodology is in those numbers."
Wallace also asked if Moens had a membership in the club he had been paid to value.
"Are you a member at the club?" Wallace asked.
"I am," Moens said, adding that he joined in 1995 or 1996. "I don't go too often. I don't like clubs," he said.
Moens described his process for valuing properties as comparable to a baker making a cake by taste, rather than a recipe. By his own admission, the process was not replicable or scientific.
"You're not running a process that is recreatable ... is that fair?" Wallace asked.
"That's fair," Moens said.
Like during his direct examination, Moens appeared confident and playful on the stand, even taking a job at the profession of a colleague mentioned in an email.
"I think he is still a liar -- I mean a lawyer," Moens said. "Sorry, I apologize, it was really low."
Eric Trump acknowledges email about financial statement
Eric Trump responded angrily when a state attorney questioned his previous statement that he was unaware that information he provided was being used in his father's statement of financial condition.
"We're a major organization. A massive real estate organization," Eric Trump said, raising his voice, before acknowledging he was aware of his father's financial statements, which are at the center of the case.
State attorney Andrew Amer pressed Eric Trump about a 2013 email in which then-Trump Organization controller Jeff McConney told Eric Trump, "I'm working on the notes to Mr. Trump's annual financial statement..."
"Is it correct that when you received this email in August of 2013, you understood that your father had an annual financial statement and you understood that Mr. McConney was asking you for information to assist with notes for that financial statement?" Amer asked.
"Yes," Eric Trump said.