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 warned lenders statements may be unreliable, expert says
Donald Trump disclosed that 95% of the assets listed in his 2014 statement of financial condition departed from generally accepted accounting principles -- known in the industry as GAAP -- according to the defense's expert witness Jason Flemmons.
The testimony from the defense's accounting expert bolsters Trump's argument that the departures from GAAP in his statements were adequately disclosed to lenders, making the lenders themselves responsible for drawing their own conclusions about the valuations listed in the documents.
It also supports the defense's position that Trump's statements fell within the regulations on personal financial statements, thus shielding him from allegations of fraud.
Judge delays ruling on mistrial after Trump claims bias
Judge Arthur Engoron did not issue a ruling on the defense's motion for a mistrial in court, opting to give the New York attorney general time to determine if the state wants to respond to the request.
"I would ask if we could have until tomorrow to determine if we want to put in anything," state attorney Kevin Wallace said after Engoron's asked if the state plans to file a response.
The testimony of expert witness Jason Flemmons is now resuming.
Motion accuses judge of 'predetermining' trial's outcome
In their motion for a mistrial, lawyers for Donald Trump and his adult sons argue that Judge Engoron has "predetermined the outcome of this proceeding and is merely going through the motions before it ultimately doles out punishment."
Writing that the actions of both Engoron and his clerk create an appearance of impropriety that has resulted in "biased rulings," Trump's lawyers warn of wide-reaching implications.
"Left unchecked, the introduction of such demonstrable pro-Attorney General and anti-Trump/big real estate bias into a case of worldwide interest involving the front-runner for the Presidency of the United States impugns the integrity of the entire system," they write.
Their three-pronged motion argues that the extrajudicial conduct of Engoron, the political activity of his clerk, and their rulings -- including their gag order and fines -- are each irreparable harms that can only be remedied by scrapping the entire trial.
"Only the grant of a mistrial can salvage what is left of the rule of law," they write.
Trump is 'trying to dismiss the truth,' NY AG spokesperson says
A spokesperson for New York Attorney General Letitia James described Donald Trump's motion for a mistrial as an effort "to dismiss the truth and the facts."
"Donald Trump is now being held accountable for the years of fraud he committed," the spokesperson said. "He can keep trying to distract from his fraud, but the truth always comes out."
Trump's motion for a mistrial takes aim at Judge Engoron as well as his law clerk, who frequently collaborates with the judge before he rules on objections, the admissibility of evidence, and other legal matters.
The judge imposed a limited gag order prohibiting statements about his staff after Trump posted about the clerk on social media.
Judge admonishes Trump after he posts about clerk
As court resumed after the lunch break, Judge Engoron admonished Donald Trump for a post he made this afternoon on his Truth Social platform regarding Engoron's clerk, Alison Greenfield.
"Personal attacks on members of my court staff are unacceptable and inappropriate. Consider this statement a gag order forbidding all parties from posting, emailing or speaking publicly about any of my staff," the judge said in his admonishment.
The post, which included a photo of Greenfield with Senate Majority Leader Chuck Schumer, made unsubstantiated claims about her connections with Schumer and falsely claimed that Greenfield is "running" the case against Trump.
Trump apparently made the post, which linked to Greenfield's Instagram account, while the former president was sitting in the courtroom.
The post was deleted shortly before the judge's admonishment, but it was up for at least an hour and a half. Engoron lamented that the sentiment was shared to millions.
The judge did not mention Trump by name but noted the post came from one of the defendants.
Greenfield sits at the bench to Engoron's immediate right and the judge is often seen conferring with her over legal and logistical matters.
In a statement, Schumer spokesperson Allison Biasotti called Trump's post "ridiculous, absurd, and false," saying that "Sen. Schumer does not know Ms. Greenfield. As is well known, Sen. Schumer attends countless events in every corner of the state where tens of thousands of constituents take photos with him, just like this one, which was taken at a stop at an annual brunch in Manhattan.”
-ABC News' Peter Charalambous, Aaron Katersky, Soo Rin Kim, Lalee Ibssa and Kendall Ross