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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Ivanka Trump benefited from fraud, NY AG says

Speaking to reporters outside court this morning, New York Attorney General Letitia James said that today's testimony will demonstrate that Ivanka Trump personally benefited from the fraud that a judge has ruled her family committed.

"We uncovered the scheme and she benefited from it personally," James told reporters. "And Ms. Trump will do all that she can to try to separate herself from his corporation, but she is inextricably tied to the Trump Organization and to these properties that she helped secure financing for."

James has taken a seat in the front row of the courtroom's gallery, feet from her team of lawyers at the state's counsel table.


NY AG's chief real estate lawyer to question Ivanka Trump

Louis Solomon, the chief of the New York attorney general's real estate finance division, is expected to lead the questioning of Ivanka Trump.

Solomon led Ivanka's Trump deposition in August 2022, where she denied being involved in her father's financial statements that are at the center of the case.

Earlier in the trial, Solomon led a contentious direct examination of former Trump Organization CFO Allen Weisselberg, who frequently struggled to answer questions about who was responsible for various financial decisions at the company.

Solomon has frequently sparred with Donald Trump's lawyers during the trial, including a heated exchange after multiple members of the state team tested positive for COVID-19 during the proceedings.

"Everything in this courtroom concerns me and my client, including your health," defense lawyer Chris Kise said.

"Thanks for your concern," Solomon responded offhandedly.


Ivanka Trump arrives at courthouse

Ivanka Trump has arrived at the New York State Supreme Courthouse, where she was greeted by a crowd of photographers ahead of her testimony this morning.

She did not make a statement outside court.

The eldest daughter of former President Trump is scheduled to take the stand at around 10 a.m. ET.


Crowd of reporters awaits Ivanka Trump outside court

A sizeable group of reporters is huddling outside the New York State Supreme Courthouse in lower Manhattan awaiting the arrival of Ivanka Trump on a chilly 42-degree morning.

Moderately smaller than the crowd that waited her father on Monday, photographers and court reporters are crammed in a narrow maze of metal barriers that police have assembled outside the building for the trial. The security arrangement, which has been utilized any time a Trump family member has appeared in court, has become a regular part of life for reporters covering the trial and a curiosity for tourists exploring downtown New York.

"Is this the line to see Donald Trump?" a passerby asked this morning.

"Yes, but he's not here today," a reporter responded to the visibly disappointed tourist.


Judge stops expert's testimony following state's objection

Donald Trump's lawyers abruptly stopped the testimony of their first expert witness -- who was expected to testify for a full day or two -- after Judge Engoron limited the topic areas of his testimony.

Steven Witkoff, a real estate investor and longtime friend of Trump's, was brought into court by the defense team to testify that Trump's Doral golf club was undervalued in Trump's financial statements.

But Judge Engoron sustained an objection from the state barring any testimony about the valuation of Doral, significantly limiting Witkoff's testimony and appearing to hamper the defense strategy proposed by Trump's attorney Chris Kise.

Kise argued that the inaccuracies in Trump's statement of financial condition can cut both ways: Even if some properties were overvalued, other properties like Doral were significantly undervalued and balanced out the statement, according to Kise.

"It is highly, extraordinarily relevant if there are assets that are undervalued substantially on those same statements," Kise said. "They can't look at this one-sided."

State attorney Andrew Amer fiercely rebutted that argument, telling Engoron he should not take the defense's position that the inconsistencies "come out in the wash."

That argument appeared to convince Engoron, who said that overvaluations would not "insulate" a false valuation. He promised to sustain any objection that related to the value of Doral -- an approach Kise described as "lunacy."

"The reader of the financial statement has the right to know whether each particular number was accurate," Engoron said. "They are looking for accuracy."