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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Trump attorney says sons made no misrepresentations

An attorney for Donald Trump's adult sons, Eric Trump and Donald Trump Jr., added a brief opening statement of his own, defending his clients from accusations of wrongdoing.

"There was never a material misrepresentation made by Eric Trump or Donald Trump Jr.," said Clifford Robert, the attorney for Trump's adult sons, who help run the Trump Organization.

Robert said he disagrees "with just about everything" the state's prosecutor said in his opening remarks, and took aim at the state's star witness.

"Their major linchpin is Michael Cohen, a guy who lies to everyone," Robert said of the former Trump attorney.


AG's case sets 'dangerous precedent,' defense says

Attorney General Letitia James "is setting a very dangerous precedent for any business in the state of New York," warned Trump attorney Alina Habba in her opening statement.

Habba told the court she hadn't planned to make opening remarks, but that she felt moved to speak after hearing the state present its own opening statement. Habba accused the attorney general of targeting Trump before taking office, claiming the investigation and lawsuit were personal in nature.

"We are attacking a sitting president and two of his children and his employees for a statement of financial condition which is frankly worth less than what they are worth," Habba said.

Habba reiterated many of the points made earlier by co-counsel Christopher Kise, highlighting the fact that "these lenders made money," and arguing that "real estate is malleable -- the values change."

After Habba concluded her remarks, Judge Engeron engaged her in a series of follow-up questions, asking about her claim that the property appraisals at issue were "undervalued" by prosecutors.

Habba replied that "the Trump brand is worth something."


'The attorney general has no case,' defense counsel says

Former President Trump's defense counsel will present a "very different picture of the evidence" than the prosecution alleges, and will demonstrate that "there are many ways to value assets," according to opening remarks from Christopher Kise, Trump's lead attorney.

"We think the evidence is going to establish … President Trump has made billions of dollars building one of the most successful real estate empires in the world," Kise said, reiterating sentiments he conveyed in pretrial motions.

Kise offered a glimpse into the former president's defense, including plans to present testimony from a New York University professor who will explain that "there is no one generally accepted procedure to determine the estimated current value" of a property.

Other defense witnesses, including four Deutsche Bank officers who were involved in approving Trump's loans, will explain how they were able to craft their own independent risk analyses meant to mitigate the claims of fraud that are core to the state's case.

"Anyone committing fraud does not tell the other side, 'Please do your own analysis,'" Kise said regarding Trump's instructions to lenders.

Kise also previewed plans to undermine the state's key witness, former Trump attorney Michael Cohen, who Kise said has "lied to everyone and anyone he has come in contact with."

Kise reiterated the defense's claim that Trump did not commit fraud and that there were no victims of his alleged conduct.

"The attorney general has no case," Kise said.


Defendants were 'lying year after year,' prosecutors say

Prosecutors intend to prove in the coming months that "each defendant engaged in repeated, persistent, illegal acts in conduct of business," according to the opening statement from Kevin Wallace of the attorney general's office.

Referring to Judge Engoron's partial summary judgment last week, Wallace said that "the people have already proven" that former President Trump used "false, misleading" statements that were "repeatedly [and] persistently used in the conduct of business."

But prosecutors will further demonstrate that Trump and his co-defendants knew those statements were false and continued to peddle them anyway in furtherance of their alleged scheme, Wallace told the judge.

"The defendants were lying year after year," he said.

Wallace played clips of video depositions to punctuate his remarks, including testimony from Trump himself, as well as Eric Trump and former Trump attorney Michael Cohen -- whose congressional testimony years ago precipitated the state's investigation and some of the key allegations underpinning their case.

"The goal was to use each of [Trump's] assets and increase its value in order to get to the end result number," Cohen said during his taped deposition. "It was essentially backing in numbers to each of the asset classes in order to attain the number that President Trump wanted."

Trump and his co-defendants "knew that a high net worth was necessary to get and maintain certain financial benefits," Wallace said, pointing to basic principles of accounting and finance.

Throughout Wallace's remarks, the attorney general's office flashed graphics on television screens inside the courtroom showing some of the alleged inflated values of Trump's properties alongside the amounts the properties were appraised at.

Seated in his chair with his arms crossed, Trump visibly shook his head at times during the prosecutor's opening statement. At one point he seemed to mutter something under his breath.

The former president whispered with his attorneys throughout.


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.