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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Michael Cohen could testify next Monday, judge says

The earliest possible day that former Trump attorney Michael Cohen could testify is next Monday, Judge Engoron said.

Cohen, who for years was Trump's so-called "fixer," said an ongoing medical issue had forced him to postpone his testimony, which was originally scheduled to begin tomorrow.

Judge Engoron noted that he has not yet received Cohen's "all-important doctor's note," but that he hopes to receive it sometime today.

Trump attorney Chris Kise criticized the delayed appearance of Cohen, who he described as central to the state's case -- noting that Cohen has continued to post to social media despite his medical issue.

"He does continue to be active in his pursuit of my client," Kise said. "He does not appear to be that infirm."


Trump wanted his net worth to 'go up,' exec says he was told

Trump Organization executive Patrick Birney testified that then-CFO Allen Weisselberg told him that Trump wanted to see his net worth "go up."

"Did Allen Weisselberg ever tell you that Mr. Trump wanted his net worth on the statement of financial condition to go up?" state attorney Eric Haren asked Birney.

"Yes," Birney said. "I think that happened in Allen Weisselberg's office."

Birney said the meeting with Weisselberg happened sometime between 2017 and 2019, but could recall a specific date.

The testimony prompted a quick objection from Trump attorney Chris Kise, who pushed back on claims from the New York attorney general that there was a conspiracy between Trump Organization employees to inflate Trump’s net worth.

"They are mixing hearsay and the conspiracy," Kise argued.

Judge Engoron asked both parties to submit two-page memos by tomorrow about whether the statements from Birney are hearsay.

Trump's lawyers declined to cross-examine Birney, who stepped down from the stand, clearing the way for Trump Hotels chief accounting officer Mark Hawthorn to testify.


Judge says he'll clarify upcoming schedule

On the heels of former Trump attorney Michael Cohen's decision to delay his testimony, Judge Engoron said that "the schedule for the rest of this week is somewhat up in the air."

The judge, however, promised to offer clarity about the trial schedule later today.

Engoron also acknowledged the anticipated return on Tuesday of former President Trump to the courtroom.

When the judge, while waiting for a witness to enter, joked about arguing before an empty chair, defense attorney Chris Kise replied, "It won't be empty tomorrow."

Engoron responded with a smile, saying "So I hear."


Michael Cohen delays testimony as trial enters Week 3

The civil fraud trial of former President Trump, his adult sons, and Trump Organization executives enters its third week with a notable schedule change.

Trump's former lawyer and so-called "fixer" Michael Cohen, who was initially scheduled to begin his testimony on Tuesday, has delayed his court appearance due to a preexisting medical condition.

"I look forward to testifying and correcting the record as to the multiple misstatements and responses by previous witnesses who stated … 'I don't recall.' Unfortunately for them, I do," Cohen told ABC News on Saturday.

Trump is expected to attend multiple days of the trial beginning on Tuesday, according to sources familiar with his plans.

In the meantime, Trump Organization executive Patrick Birney is expected to conclude his testimony this morning.

Birney is scheduled to be followed on the stand by Mark Hawthorn, the chief accounting officer at Trump Hotels.


Judge, clerk subjected to daily threats, official says in gag order filing

An attorney for Judge Arthur Engoron also filed in support of the gag order in Donald Trump's civil fraud trial, arguing that violent threats have increased since the gag order was lifted.

The limited gag order, which prohibited Donald Trump and his attorneys from publicly commenting about Engoron's staff, was issued by the judge last month after Trump posted about the judge's law clerk on social media. Judge David Friedman of the appellate division's First Department stayed the order on Thursday, citing constitutional concerns over Trump's free speech rights.

Engoron's filing includes a report from Charles Hollon of the Judicial Threats Assessment Unit of the New York State Court System's Department of Public Safety. According to the report, Engoron and his principal law clerk, Allison Greenfield, have been inundated with credible, violent and antisemitic threats since Trump began criticizing Greenfield.

"The threats against Justice Engoron and Ms. Greenfield are considered to be serious and credible and not hypothetical or speculative," Hollon wrote in the report.

Greenfield has been the victim of daily doxing of her personal email address and phone number, receiving dozens of calls, emails and social media messages daily, according to Hollon. Approximately half the harassing messages have been antisemitic, according to Greenfield.

In the report, Hollon wrote that Engoron was the subject of credible threats before the trial had started, but Trump's Oct. 3 Truth Social post directed at Greenfield exponentially increased the number of threats directed at her.

The report included multiple examples of voicemails that were left on the telephone in Engoron's chambers.

Hollon said the messages have created an "ongoing security risk" for Engoron, his staff and family, but that the gag order had been effective in lowering the number of threats.

"The implementation of the limited gag orders resulted in a decrease in the number of threats, harassment and disparaging messages that the judge and his staff received," Hollon said in the report. "However, when Mr. Trump violated the gag orders, the number of threatening, harassing and disparaging messages increased."

Engoron's lawyer, Lisa Evans, said the threats detailed in Hollon's affirmation justify the gag order, which functions as a reasonable limit on free speech.

"The First Amendment does not prohibit courts from limiting speech that threatens the safety of the court's staff," Evans wrote.

Trump's reply to the filing is due on Nov. 27, after which the First Department will decide whether to fully lift the gag order.