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
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 fines Trump $354 million
Former President Donald Trump must pay $354 million for fraudulent business practices, Judge Arthur Engoron has ruled.
Trump's sons Donald Trump Jr. and Eric Trump have been fined $4 million apiece, and former Trump Organization CFO Allen Weisselberg has been fined $1 million.
The decision bars Trump barred from serving as an officer of a New York company for three years, and bars his sons for two years apiece.
Regarding the dissolution of Trump's companies, the decision says, "This Court hereby modifies its September 26, 2023, Decision and Order solely to the extent of removing the language ordering the LLCs cancellation en masse. The restructuring and potential dissolution of any LLCs shall be subject to individual review by the Court appointed Independent Director of Compliance in consultation with Judge Jones."
In his decision, Engoron wrote that "Defendants' refusal to admit error -- indeed, to continue it, according to the Independent Monitor -- constrains this Court to conclude that they will engage in it going forward unless judicially restrained."
"Overall, Donald Trump rarely responded to the questions asked, and he frequently interjected long, irrelevant speeches on issues far beyond the scope of the trial," the judge wrote. "His refusal to answer the questions directly, or in some cases, at all, severely compromised his credibility."
"The accountants created these 'compilations' based on data submitted by the Trump entities," the decision said. "In order to borrow more and at lower rates, defendants submitted blatantly false financial data to the accountants, resulting in fraudulent financial statements. When confronted at trial with the statements, defendants' fact and expert witnesses simply denied reality, and defendants failed to accept responsibility or to impose internal controls to prevent future recurrences."
Of Donald Trump Jr., Engoron wrote, "Despite disclaiming responsibility for or knowledge of the Statements of Financial Conditions' contents, Trump, Jr. still insisted that the Statements of Financial Condition were 'materially accurate.'"
Engoron's decision follows an 11-week civil trial in New York, where Trump and three of his adult children testified.
New York Attorney General Letitia James sued Trump, his two adult sons, and Trump Organization executives in September 2022 for issuing fraudulent financial statements -- including over 200 false and misleading asset values between 2011 and 2021 -- to get better loan terms and business deals.