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
Former Trump Organization VP testifies about Ivanka Trump
Former Trump Organization VP David Orowitz testified about Ivanka Trump's involvement with Trump's Old Post Office property in Washington, D.C.
"Ivanka wanted me to change the language in the GAAP section. She asked that I review with you," Orowitz wrote in a 2011 email to then-Trump Organization CFO Allen Weisselberg, referring to the Generally Accepted Accounting Principles used in the preparation of financial documents.
Defense attorneys have previously tried to downplay the extent to which Ivanka Trump was involved in the representation of Trump's finances.
Orowitz subsequently stepped down from the witness stand to make way for Michiel McCarty, the state's sole expert witness, to begin his testimony.
'We have a busy day,' judge says as court gets underway
"We have a busy day and a busy week, so let's try to move things along," Judge Engoron remarked as he brought the courtroom to order to begin the day's proceedings.
"Would you like to continue your witness?" Engoron asked state attorney Eric Haren.
"We would," said Haren, before calling back to the stand former Trump Organization vice president David Orowitz, who began his testimony yesterday afternoon.
Defense attorneys Chris Kise, Alina Habba, and Jesus Suarez are sitting at the counsel table, leaving one seat available for Donald Trump Jr., who has not yet appeared ahead of his scheduled testimony this afternoon.
Trump rails against judge, gag order
Former President Trump continued to attack Judge Engoron this morning, calling him "crazy, totally unhinged, and dangerous" on his Truth Social platform.
"He then put a RIDICULOUS GAG ORDER ON ME, which we will appeal. He fines me at levels never seen before," Trump wrote this morning.
Trump recently paid $15,000 in fines related to two violations of the limited gag order Engoron established that prohibits public statements about the judge's staff.
Trump also complained about the potential fine that Engoron could impose in the case. During court yesterday, the judge remarked that disgorgement -- fining Trump for profits made through fraudulent means -- is a "clearly available remedy" in the case.
"Now they come up with something called 'disgorgement.' I never even heard of the term," Trump said.
Engoron already ruled in a partial summary judgment that Trump had submitted "fraudulent valuations" for his assets, leaving the trial to determine additional actions and what penalty, if any, the defendants should receive.
'Leave my children alone,' Trump says ahead of sons' testimony
Former President Trump attacked Judge Arthur Engoron and New York Attorney General Letitia James on social media ahead of today's expected testimony from his son Donald Trump Jr.
"Leave my children alone, Engoron. You are a disgrace to the legal profession!" Trump wrote overnight on his Truth Social platform.
Donald Trump Jr. is expected to begin his testimony in the afternoon today.
If that testimony concludes today, his brother Eric Trump could also begin his testimony.
Both of them are executive vice presidents in the Trump Organization.
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.