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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NY AG claims Trump Jr., Eric Trump lied to enrich father

After a day of testimony in which tempers at times flared on all sides, Eric Trump will return to court this morning for what is expected to be his final day on the witness stand.

In a video statement posted to social media last night, New York Attorney General Letitia James suggested that Donald Trump Jr. and Eric Trump's testimony yesterday highlighted how they lied to help inflate their father's net worth.

Eric Trump was "intimately involved in lying about the values of properties ... to make his father appear richer," while Donald Trump Jr. "continued to lie" by certifying his father's financial statements despite being confronted with misstatements, James alleged.

"They pretend that they were not involved in their family's fraudulent business. But the facts tell a very different story," James said in the video.


Appeals courts rules that Ivanka Trump must testify

A New York appeals court has denied an emergency request from Ivanka Trump to stop her testimony at her father's civil fraud trial.

Trump's daughter, who is not a defendant in the case, was subpoenaed by the attorney general to testify.

She is currently scheduled to testify next week on Wednesday.


Trump attorney decries trial as 'waste of NY taxpayer dollars'

Outside court after court was adjourned for the day, Trump attorney Alina Habba defended the actions of Donald Trump's adult children on the heels of their testimony.

"These children are being brought in, away from their families, for doing nothing wrong," Habba said.

Echoing Trump, Habba attacked New York Attorney General Letitia James and called the trial "the biggest waste of New York taxpayer dollars I have ever seen."

"She piggybacked on Trump to get into office. She didn't do it well enough to become governor," Habba said, referencing James' failed attempt to run for New York governor in 2021.

"This is a waste of time," Habba said.

Exiting court separately with his attorney, Eric Trump shot a thumbs-up to an onlooker ahead of his return to the stand Friday morning.


Judge suggests Trump attorney is misogynist, threatens gag order

Court concluded for the day with a threat from Judge Engoron to expand the trial's limited gag order to include attorneys, after a clash between the judge and defense counsel.

The judge had previously issued the partial gag order prohibiting defendants from making public comments about his staff, after former President Trump posted online about Engoron's law clerk.

After defense attorney Chris Kise suggested potential bias from the bench, Engoron told him, "Do not refer to my law clerk again."

"Sometimes I think there might be a bit of misogyny," Engoron told Kise.

"I have the right to make points on the record," Kise responded. "If there is bias in the proceedings, I have the right to raise that."

Engoron, pounding on the bench, shouted into his microphone that Kise had no right to hear conversations between the judge and his clerk.

"I have an absolute, unfettered right to get advice from my principal law clerk," Engoron said.

Court is scheduled to resume tomorrow morning when Eric Trump returns to the stand.


Estate's valuation included 7 mansions that weren't yet built

When the Trump Organization valued its Seven Springs compound in New York's Westchester County at $261 million, the company included seven mansions, estimated to be worth $23 million each, that had not been built, longtime Trump Organization controller Jeff McConney testified.

In contrast, an appraiser had said Seven Springs was worth $56 million, excluding development rights for the property, which hadn't been awarded.

McConney testified that he did not factor into the valuation when, or whether, the homes would be built.

"You have treated, for the purposes of this valuation, a profit of $23 million per home as if it were realized immediately?" asked Andrew Amer with the New York attorney general's office.

"Correct," McConney said.

Amer said that Trump Organization VP Eric Trump, in a call with McConney the following year, instructed McConney to continue to value the seven mansions the same as he did in 2013.

McConney is testifying as a hostile witness since he is also a named defendant in the case. It gives Amer wider latitude in his examination, though defense attorneys have made several objections about leading questions.

The proceedings were briefly interrupted by the blaring of a horn that was audible in the courtroom, prompting Amer to interrupt his questioning and remark, "Someone is having a celebration."

Judge Engoron, who has displayed a dry wit throughout the trial, responded, "Maybe they're celebrating us."