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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Defense to call first expert witness

Donald Trump's defense team plans to call their first of several expert witnesses to the stand today.

Steven Witkoff, a New York-based real estate investor and developer, is set to testify about his expert opinion that the Trump National Doral golf course in Miami was undervalued in Trump's financial statement, despite the attorney general's claim to the contrary.

The expert report Witkoff prepared for the case also criticized the finding from the state's expert regarding the value of Trump's 40 Wall Street property.

During a 2018 roundtable on tax reform, Trump called Witkoff a "pal" who he inspired to enter the real estate industry.

"You know, people don't realize Steve started out as a lawyer -- a very good lawyer, a top lawyer in New York. And then he said, 'I'm going to go into the real estate business because I can do this, too," Trump said. "He saw me do it, and he said, 'If Trump can do it, I guess I can do it, right?'"


James, Trump respond as defense begins its case

In a video statement posted to social media, New York Attorney General Letitia James said that the testimony of Donald Trump Jr. yesterday failed to refute any of her case against Donald Trump and his adult sons.

"After spending a full day walking through a marketing presentation to sell us all on the greatness of the Trump Organization, the defendants did not make a single point to refute the case we brought against them," James said of Trump Jr., who led off the defense's case.

Trump's eldest son, an executive VP with the family firm, functionally served as a summary witness to explain the history and notable assets of the Trump Organization, repeatedly using words like "spectacular" and "incredible" to spell out the details of Trump's properties.

James, meanwhile, drew the ire of Donald Trump for appearing to smile in court.

"A.G. Letitia James is smirking all day long from her seat in Court, as New York continues to set records in murder and other violent crimes, and businesses flee to other States," Trump wrote on Truth Social this morning, despite murders in New York City being down nearly 10% this year according to the NYPD.


Court adjourns for day after tax lawyer's testimony

The defense wrapped up the first day of its case with testimony from Donald Trump's former external tax lawyer, Sheri Dillon, who returned to the witness stand to clarify her actions related to conservation easements at Trump's properties.

Dillon previously testified during a lengthy and combative portion of the state's case.

"Welcome back. I feel like I am at a reunion -- Trump trial reunion," Judge Engoron joked when Dillon returned to the courtroom.

Dillon, explaining a potential gap in email communications about specific deals, testified that she often communicated with Eric Trump over the phone.

"If I picked up the phone and talked to him, I would know he knew what he needed to know," Dillon testified.

She also said she advised Trump's appraiser, David McArdle, that the company could add 40 additional residential units at Trump National Golf Club in New York's Westchester County by filing a new offering plan, according to an email shown in court. The clarification challenges the New York attorney general's allegation that a $101 million increase in the value of undeveloped land was based on an unfounded plan by Eric Trump to add units to the property.

During a short cross-examination, state attorney Louis Solomon attempted to challenge Dillon's authority to provide such legal information to McArdle.

"Do you know if a sponsor has a right to have an offering plan accepted for filing merely because the development meets the requirements for zoning?" Solomon asked.

"No, I do not," she responded.

Dillon concluded her testimony, and court then adjourned for the day.


Trump Jr. acknowledges positive rapport with judge

Speaking outside the courthouse following his testimony for the defense, Donald Trump Jr. told ABC News that he seems to have a positive relationship with Judge Engoron.

"Perhaps there's a New York personality there, but no I think he understood," Trump Jr. said when ABC News suggested he and the judge appeared to get along. "I can't help myself even in this very serious situation. If you take yourself too seriously the world sort of sucks. You got to have a little bit of fun with it, so I did."

His relationship with the judge appears to stand in contrast to that of his father, who has accused Engoron of bias and insulted him from the witness stand.

"We had some quips in the courtroom the first time I was here," Trump Jr. said of Engoron. "Sort of gave me a fist bump on the way out. I guess I had a rather snappy response to something that was -- I can't even remember what it was right now. He said, 'That was really funny.'"

Asked by ABC News whether Trump Jr. shared his father's views about the judge being biased, the son demurred.

"Listen, I don't even know how far the gag order applies, so I don't need to do that and put myself -- I'm in enough crosshairs, guys," he said.


Trump Jr. says he didn't 'do anything' with triplex info

Donald Trump Jr. testified he largely ignored a 2017 email from a Forbes magazine reporter who asked about the false claim that Donald Trump's triplex apartment in Trump Tower was 30,000 square feet -- about three times larger than its actual size.

Forwarded the message by a Trump Organization executive in 2017, Trump Jr. replied, "Insane amount of stuff there," according to material entered into evidence.

Asked about the email, Trump Jr. said he largely ignored the lengthy email and did not act on it.

"I don't know if I would spend hundreds of questions' worth of time answering questions from Forbes magazine," Trump Jr. said. "I have no specific recollection of doing anything with it."

Despite the error being called out, Trump Jr. and then-CFO Allen Weisselberg still signed off on Trump's 2016 financial statement that falsely claimed Trump's triplex was 30,000 square feet and worth $327 million, according to the New York attorney general's complaint.

Judge Engoron later paused the proceedings for the court's morning break. On his way out of the courtroom, Trump Jr. stopped to chat with the court's sketch artist.

"He said, 'Make me look sexy,'" the artist, Jane Rosenberg, told reporters.

Rosenberg famously sketched Trump Jr.'s father during his arraignment in the Stormy Daniels case, with her work landing on the cover of New Yorker magazine.