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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'Nobody forgot to check off a box,' judge says about lack of jury

Responding to lingering questions about the lack of a jury at the ongoing civil trial, Judge Engoron stated on the record that Trump would not have been entitled to a jury trial.

"We are having a non-jury trial because we are hearing a non-jury case," Engoron said, dispelling claims that the trial lacks a jury because Trump's lawyers simply forgot to check off a box or file a motion.

"It would have not helped to make a motion. Nobody forgot to check off a box," Engoron said.

During her opening statement, Trump's lawyer Alina Habba said the former president would have preferred a jury trial, and Trump himself has made multiple posts on his Truth Social platform about the alleged injustice stemming from the lack of a jury.

"The AG checked off non-jury, and there was no motion for a jury," Engoron said about the process in Trump's case -- but he added that if a motion for a jury trial had been filed, he would have rejected it because the attorney general asked for "equitable" relief, which does not entitle participants to a jury trial.

"I would like to say thank you, your honor," Habba said about the clarification.


New York AG not attending trial today

New York Attorney General Letitia James is absent from the courtroom this morning.

James attended the first six days of the trial, which started last Monday.

Former President Trump and Trump Organization VP Eric Trump both attended the first three days of the trial.


Trump used private banking to secure $300M in loans, per AG

While the Trump Organization's relationship with Deutsche Bank goes back 30 years, the attorney general alleges in her complaint that in 2011, Trump began doing business with the private wealth managers at the bank, rather than bankers who specialized in commercial real estate.

"In essence, rather than obtain credit facilities through the wing of Deutsche Bank with an expertise in commercial real estate, Mr. Trump began to seek funds from a wing of Deutsche Bank focused on servicing ultrawealthy clients," the attorney general's complaint said. "Hence, Mr. Trump's personal guaranty, and his representations regarding his finances that backed up that guaranty, featured prominently in Mr. Trump's loan transactions through the [private wealth management] wing of Deutsche Bank."

During the attorney general's investigation, Deutsche Bank credit risk executive Nicholas Haigh told investigators that he "may not have authorized" Trump's loans if he was aware of the inflated values in Trump's financial statements, according to a letter the state submitted to the court.


Deutsche Bank executive set to take stand

Donald Trump's civil fraud trial is set to resume this morning with the testimony of Nicholas Haigh, a credit risk executive who worked at Deutsche Bank when it issued loans to the former president.

Deutsche Bank was the largest single lender to the Trump Organization between 2011 and 2022, according to the New York attorney general.

Owing approximately $340 million to the bank at one point, the Trump Organization used Deutsche Bank to secure favorable loans related to its purchase of the Old Post Office Hotel in Washington, D.C., the Trump International Hotel and Tower in Chicago, Illinois, and Trump National Doral golf club in Florida, according to the AG's complaint.


Trump, after testifying, fined $10,000 for violating gag order

Judge Engoron fined former President Trump $10,000 for violating a limited gag order after deciding that Trump referred disparagingly to his law clerk during a statement in the hallway.

Trump briefly took the witness stand, raising his hand and stating his name, "Donald John Trump, New York."

Engoron asked Trump, "Did you say, 'This judge is a very partisan judge with a person who is very partisan sitting alongside of him?'"

Trump responded "Yes," but insisted he was referring to Michael Cohen, who was seated next to the judge in the witness chair.

"You sure you didn't mean the person on the other side?" Engoron asked, referring to his law clerk, whom Trump previously disparaged in a social media post that the judge ordered him to take down as part of the limited gag order he imposed earlier in the trial.

"Yes, I'm sure," Trump answered.

Trump conceded his social media post was "maybe unfair" but he added he thinks "she's very unfair."

Engoron decided Trump's hallway statement must have referred to his clerk because "there's a barrier" between the bench and Cohen, and he suggested Trump would have called Cohen by name.

The defense immediately balked at the fine.

"I just don't think there's any clear record here," defense attorney Chris Kise said.