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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Trump Organization monitor flags financial misstatements

A report issued Friday by the former judge appointed to serve as the Trump Organization's independent monitor by Judge Arthur Engoron found that the company has been cooperative, implemented some changes, and issued necessary corrections to financial statements; however, the report also outlined multiple errors and misstatements observed by the monitor over her 14 months in the role.

The report, by independent monitor Barbara Jones, was issued at the request of Judge Engoron ahead of his expected ruling in Trump's civil fraud trial.

"It is important to note that the Trump Organization acknowledged the disclosure issues described after I brought them to its attention and has been open to recommendations to improve accuracy and transparency," Jones wrote in her report.

However, Jones wrote, "Absent steps to address the items above, my observations suggest misstatements and errors may continue to occur, which could result in incorrect or inaccurate reporting of financial information to third parties."


Trump lawyer calls NY AG's 'Pharma Bro' comparison 'irresponsible'

A day after New York Attorney General Letitia James cited a ruling involving "Pharma Bro" Martin Shkreli to support a lifetime real estate ban for Donald Trump, a defense lawyer responded in a letter to the court calling the comparison "misplaced and irresponsible."

The New York AG said Tuesday that a federal appeals court decision upholding a lifetime industry ban for Shkreli should convince Judge Arthur Engoron to impose a lifetime real estate ban on Trump.

Defense attorney Clifford Robert, in response, wrote Wednesday that "the absurdity of the Attorney General's latest effort would be almost comical but for the sobering future consequences of her shameless abuse of power."

Robert argued that Trump's fraud case lacks witnesses, complaints, and victims compared to Shkreli's case.

In a statement to ABC News, Trump attorney Chris Kise said the ruling in Trump's case could have far-reaching implications for the New York business community.

"This is not just about President Trump. Every major bank CEO and every Wall Street participant should speak out now before the Attorney General's shocking and tyrannical interference in the capital markets places all New York business transactions at risk," Kise said.


NY AG cites 'Pharma Bro' ruling in seeking lifetime ban for Trump

The New York attorney general's office says a federal appeals court decision upholding a lifetime industry ban for disgraced "Pharma Bro" Martin Shkreli should convince Judge Arthur Engoron to impose a lifetime real estate ban on Donald Trump.

In a letter to Judge Engoron, state attorney Colleen Faherty cited Tuesday's decision in the Shkreli case to justify the NY AG's request to ban the former president from the New York real estate industry for life.

According to Faherty, New York State Executive Law 63(12) -- which was used in the NY AG's lawsuits against both Trump and Shkreli -- gives the court the ability to "issue a permanent and plenary ban in a particular industry."

"63(12) is the Swiss Army knife of the AG's Office," said Tristan Snell, a former lawyer with the New York attorney General's office who used the law to sue Trump over the now-defunct real estate seminar called Trump University. "If you don't have laws like this in place, that you basically allow lies and misrepresentations to be endemic."

A final decision in Trump's civil fraud case is expected later this month.


James releases video of Trump's April 2023 deposition

New York Attorney General Letitia James on Friday released video of former President Trump's April 2023 deposition in the case.

Video of the deposition, the transcript of which was released by the attorney general in August 2023, was released as part of a public records request.

As ABC News reported in August, Trump in the deposition called his real estate portfolio "the Mona Lisa of properties" and suggested his assets were worth far more than what appeared in his statements of financial condition that are at the center of the New York AG's case.

The videotaped deposition proved to be a preview of Trump's testimony at trial earlier this month, in which he bragged about his finances and declared himself "an innocent man."


Trump Jr. pressed about departure of ex-CFO

Donald Trump Jr. struggled to answer questions when pressed about why former Trump Organization CFO Allen Weisselberg departed the family's firm.

"Because some legal issues he got himself into," Trump Jr. said, declining to offer specifics about Weisselberg's guilty plea on tax evasion charges last year.

Previously giving lengthy answers to questions about his background and even smiling with the judge, Trump Jr. appeared tense on the witness stand as he answered questions about Weisselberg.

"The specific event was he was indicted," Trump Jr. said.

He added that when began working for the Trump Organization as an executive vice president in the 2010s, Weisselberg outranked him. Trump Jr. would seek Weisselberg's approval for certain business decisions such as refinancing loans.

"Who is above you in your role as an executive vice president in the Trump Organization?" state attorney Colleen Faherty asked.

"Obviously I would have reported to my father in that period of time … people like Allen Weisselberg would have still been senior to me," Trump Jr. said of that time period.

Trump Jr. said he gained more responsibility in 2016 when his father became president and he was named a trustee of his father's revocable trust. He said that he, Weisselberg and his brother Eric Trump became a kind of triumvirate running the Trump Organization.

"We stopped reporting to my father on decisions involving the business," Trump Jr. said.

That relationship broke down once Weisselberg got himself into "legal issues," Trump Jr. said. He testified that he could not recall the circumstances of Weisselberg's exit, including the multimillion-dollar severance deal that Weisselberg received, which Weisselberg faced questions about during his own testimony earlier this month.

"I have no knowledge of the specifics of how it happened. He is no longer working at the Trump Organization," Trump Jr. said of the former CFO.