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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Michael Cohen could testify next Monday, judge says

The earliest possible day that former Trump attorney Michael Cohen could testify is next Monday, Judge Engoron said.

Cohen, who for years was Trump's so-called "fixer," said an ongoing medical issue had forced him to postpone his testimony, which was originally scheduled to begin tomorrow.

Judge Engoron noted that he has not yet received Cohen's "all-important doctor's note," but that he hopes to receive it sometime today.

Trump attorney Chris Kise criticized the delayed appearance of Cohen, who he described as central to the state's case -- noting that Cohen has continued to post to social media despite his medical issue.

"He does continue to be active in his pursuit of my client," Kise said. "He does not appear to be that infirm."


Trump wanted his net worth to 'go up,' exec says he was told

Trump Organization executive Patrick Birney testified that then-CFO Allen Weisselberg told him that Trump wanted to see his net worth "go up."

"Did Allen Weisselberg ever tell you that Mr. Trump wanted his net worth on the statement of financial condition to go up?" state attorney Eric Haren asked Birney.

"Yes," Birney said. "I think that happened in Allen Weisselberg's office."

Birney said the meeting with Weisselberg happened sometime between 2017 and 2019, but could recall a specific date.

The testimony prompted a quick objection from Trump attorney Chris Kise, who pushed back on claims from the New York attorney general that there was a conspiracy between Trump Organization employees to inflate Trump’s net worth.

"They are mixing hearsay and the conspiracy," Kise argued.

Judge Engoron asked both parties to submit two-page memos by tomorrow about whether the statements from Birney are hearsay.

Trump's lawyers declined to cross-examine Birney, who stepped down from the stand, clearing the way for Trump Hotels chief accounting officer Mark Hawthorn to testify.


Judge says he'll clarify upcoming schedule

On the heels of former Trump attorney Michael Cohen's decision to delay his testimony, Judge Engoron said that "the schedule for the rest of this week is somewhat up in the air."

The judge, however, promised to offer clarity about the trial schedule later today.

Engoron also acknowledged the anticipated return on Tuesday of former President Trump to the courtroom.

When the judge, while waiting for a witness to enter, joked about arguing before an empty chair, defense attorney Chris Kise replied, "It won't be empty tomorrow."

Engoron responded with a smile, saying "So I hear."


Michael Cohen delays testimony as trial enters Week 3

The civil fraud trial of former President Trump, his adult sons, and Trump Organization executives enters its third week with a notable schedule change.

Trump's former lawyer and so-called "fixer" Michael Cohen, who was initially scheduled to begin his testimony on Tuesday, has delayed his court appearance due to a preexisting medical condition.

"I look forward to testifying and correcting the record as to the multiple misstatements and responses by previous witnesses who stated … 'I don't recall.' Unfortunately for them, I do," Cohen told ABC News on Saturday.

Trump is expected to attend multiple days of the trial beginning on Tuesday, according to sources familiar with his plans.

In the meantime, Trump Organization executive Patrick Birney is expected to conclude his testimony this morning.

Birney is scheduled to be followed on the stand by Mark Hawthorn, the chief accounting officer at Trump Hotels.


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.