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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Defense plans to request a halt to the proceedings

Donald Trump's legal team plans to request a stay of the ongoing fraud trial, pending their appeal of Judge Engoron's partial summary judgment ruling issued last week, defense lawyer Chris Kise notified Engoron in court.

In seeking to halt the trial, the defense team said they plan to file their request tomorrow morning and wanted to provide notice to the state.

State attorneys objected that less than 24 hours' notice is not enough.

"That's clearly not sufficient," Engoron said of the notice, adding that the appellate court could deny the request due to the lack of proper notice.


Note on financial document suggests Trump had final say

A marked-up version of the Trump Organization's 2014 statement of financial condition suggests that Trump himself issued final approval for the statements, according to the document, which was entered into evidence today.

The document included a handwritten note from longtime Trump Organization Controller Jeffrey McConney saying "DJT TO GET FINAL REVIEW."

The document also included a list showing the 2013 value of Trump's properties, which McConney had crossed out to adjust to the 2014 values.

Testifying on the stand, McConney -- who joined the Trump Organization in 1987 and was responsible for Trump's financial statements between 2011 and 2017 -- testified that he worked in conjunction with accounting firm Mazars USA and Trump Organization chief financial officer Allen Weisselberg to issue the statements.

While McConney acknowledged that he wrote the note on the document, he could not provide specifics about the extent of Trump's involvement.


Judge outlines next steps for dissolving Trump's companies

As the questioning of witnesses continues, Judge Engoron has issued an order outlining the next steps to dissolve Trump's companies in New York.

Engoron last week found that Trump and his adult sons used fraudulent documents to conduct business, and ordered the cancellation of his business certificates in the state. Trump appealed that ruling yesterday.

In today's order, Engoron asks the defendants to provide a list of "entities controlled or beneficially owned by Donald J. Trump" -- and the other co-defendants -- to the Hon. Barbara S. Jones, the independent monitor overseeing Trump's business activities.

Trump is also required to notify Jones of any new business applications or changes to preexisting entities.

The order also gives the parties 30 days to recommend a receiver to oversee the dissolution of Trump's corporate assets. However both parties previously suggested that they plan to recommend Jones for that position.

In the meantime, the ongoing trial is being held to determine what additional penalties Trump might face and what might happen with the multiple causes of action included in the attorney general's lawsuit.


Trump firm didn't prepare financial statements, controller says

Longtime Trump Organization controller Jeffrey McConney, a defendant in the case, has taken the stand.

McConney testified that he was responsible for Trump's statement of financial condition from 2011 until 2017, when the responsibility was passed on to another employee.

But McConney was quick to differentiate his role from that of the organization's accounting firm, Mazar's USA.

"We as the Trump Organization didn't prepare the statement," McConney said.

Unlike most witnesses who generally aren't allowed to hear other witnesses testify, McConney -- as a defendant in the case -- is entitled to be in the courtroom for the entire trial. However, today is the first time he has appeared.


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.