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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NY AG claims Trump Jr., Eric Trump lied to enrich father

After a day of testimony in which tempers at times flared on all sides, Eric Trump will return to court this morning for what is expected to be his final day on the witness stand.

In a video statement posted to social media last night, New York Attorney General Letitia James suggested that Donald Trump Jr. and Eric Trump's testimony yesterday highlighted how they lied to help inflate their father's net worth.

Eric Trump was "intimately involved in lying about the values of properties ... to make his father appear richer," while Donald Trump Jr. "continued to lie" by certifying his father's financial statements despite being confronted with misstatements, James alleged.

"They pretend that they were not involved in their family's fraudulent business. But the facts tell a very different story," James said in the video.


Appeals courts rules that Ivanka Trump must testify

A New York appeals court has denied an emergency request from Ivanka Trump to stop her testimony at her father's civil fraud trial.

Trump's daughter, who is not a defendant in the case, was subpoenaed by the attorney general to testify.

She is currently scheduled to testify next week on Wednesday.


Trump attorney decries trial as 'waste of NY taxpayer dollars'

Outside court after court was adjourned for the day, Trump attorney Alina Habba defended the actions of Donald Trump's adult children on the heels of their testimony.

"These children are being brought in, away from their families, for doing nothing wrong," Habba said.

Echoing Trump, Habba attacked New York Attorney General Letitia James and called the trial "the biggest waste of New York taxpayer dollars I have ever seen."

"She piggybacked on Trump to get into office. She didn't do it well enough to become governor," Habba said, referencing James' failed attempt to run for New York governor in 2021.

"This is a waste of time," Habba said.

Exiting court separately with his attorney, Eric Trump shot a thumbs-up to an onlooker ahead of his return to the stand Friday morning.


Judge suggests Trump attorney is misogynist, threatens gag order

Court concluded for the day with a threat from Judge Engoron to expand the trial's limited gag order to include attorneys, after a clash between the judge and defense counsel.

The judge had previously issued the partial gag order prohibiting defendants from making public comments about his staff, after former President Trump posted online about Engoron's law clerk.

After defense attorney Chris Kise suggested potential bias from the bench, Engoron told him, "Do not refer to my law clerk again."

"Sometimes I think there might be a bit of misogyny," Engoron told Kise.

"I have the right to make points on the record," Kise responded. "If there is bias in the proceedings, I have the right to raise that."

Engoron, pounding on the bench, shouted into his microphone that Kise had no right to hear conversations between the judge and his clerk.

"I have an absolute, unfettered right to get advice from my principal law clerk," Engoron said.

Court is scheduled to resume tomorrow morning when Eric Trump returns to the stand.


New York AG's senior counsel to question Trump

Senior Enforcement Counsel Kevin Wallace of the New York attorney general's office will lead the direct examination of Donald Trump when the former president takes the stand this morning.

Wallace led the depositions of Trump during the New York attorney general's investigation and also delivered the state's opening statement in the trial.

"The defendants were lying year after year," Wallace said in his opening statement.

A constant presence in court during the trial, Wallace joined the New York AG's office in 2018 after working in the private sector for 15 years.

Wallace and Trump sparred for hours during Trump's April deposition, according to a transcript of the deposition that was subsequently released by the AG's office.

"We're going to be here until midnight if your client answers every question with an eight-minute speech," Wallace remarked after one of Trump's lengthier answers.

Wallace tried to press Trump on spreadsheets that Wallace displayed during the deposition, promoting frequent objections from Trump's lawyers.

"Oh my God -- are you people capable of reading a spreadsheet?" an exasperated Wallace said after one objection from Trump's attorney Chris Kise.