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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Ex-CFO Weisselberg last year pleaded guilty to tax fraud

Ex-Trump Organization CFO Allen Weisselberg's expected testimony this morning comes six months after he was released from New York City's Rikers Island jail complex after pleading guilty last year to 15 felony charges related to a long-running scheme to avoid $1.7 million in taxes while working for the Trump Organization.

As a condition of his plea deal, Weisselberg testified last year in the Manhattan district attorney's criminal trial of the Trump Organization itself.

"Are you embarrassed about what you did?" Trump Organization attorney Alan Futerfas asked Weisselberg during the criminal trial last November.

"More than you can imagine," replied Weisselberg, who testified that Trump himself was unaware of his tax evasion scheme.

The Trump Organization was convicted and later paid a $1.6 million fine imposed by the judge overseeing the case.


Ex-Trump CFO Allen Weisselberg expected to take stand

Former Trump Organization chief financial officer Allen Weisselberg is expected to testify when former President Donald Trump's civil fraud resumes this morning.

A named defendant in the case alongside Trump and his adult sons, Weisselberg allegedly supervised and approved the inflated valuations in Trump's financial statements at the center of the state's case, according to state attorneys.

He's also alleged to have personally met with the former president each year between 2011 and 2016 to review and get approval for the fraudulent financial statements.

"Mr. Trump made known through Mr. Weisselberg that he wanted his net worth on the Statements to increase -- a desire Mr. Weisselberg and others carried out year after year in their fraudulent preparation of the Statements," New York Attorney General Letitia James wrote in her initial complaint.


Judge doesn't stop trial, but pauses dissolving of Trump Org

A New York appellate judge declined to pause Donald Trump's ongoing civil fraud trial, after attorneys for Trump sought a stay of the trial while they appeal Judge Arthur Engoron's summary judgment ruling last week that decided the core of the case.

Judge Peter Moulton issued the ruling minutes after hearing oral arguments from both sides. While he did not pause the trial, he did stop the immediate cancelation of Trump's business certificates that Engoron had ordered last week.

"This is everything owned or controlled by the defendant. Once you dissolve you dissolve," defense attorney Christopher Kise argued in an afternoon hearing convened at the Appellate Division's First Department. "It's chaos. It's chaos right now."

The New York attorney general's office balked at halting the trial.

"There's just absolutely no basis for an interim stay of trial that's already been going on for a week," said Deputy Solicitor General Judy Vale. "It has been an enormous endeavor to get this off the ground."

Trump's defense insisted a pause was warranted given the magnitude of the potential consequences for Trump's business.

"We're not seeking delay. We're seeking a fair trial," Kise said before the judge ruled that the trial would continue.

The trial is scheduled to resume Tuesday morning.


Questioning of controller ends on dramatic note

State attorney Andrew Amer ended the afternoon dramatically, questioning longtime Trump Organization controller Jeff McConney about whether he had ever helped Trump Organization CFO Allen Weisselberg commit tax fraud.

McConney initially responded that he had not -- prompting Amer to confront McConney with his testimony from the Trump Organization's 2022 tax fraud trial, at which he testified the opposite.

Among other offenses, McConney testified during that trial that he processed a payroll check to Weisselberg's wife so she could claim social security benefits.

"You engaged in this illegal conduct because Mr. Weisselberg was your boss and if you refused his requests, you would lose your job?" Amer asked.

"Yes," McConney said.

The trial adjourned until Tuesday, when it's scheduled to resume with the direct examination of Weisselberg.

This afternoon, an appellate court will take up Trump’s request to pause the trial while he appeals Judge Engoron's summary judgment ruling last week that decided the core of the case.


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."