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
Manhattan prosecutors watching Cohen's testimony
Susan Hoffinger, who is leading Manhattan District Attorney Alvin Bragg's criminal hush money case against Donald Trump, is attendance at the trial this morning. With Cohen serving as a key witness in that case, Hoffinger also was in court yesterday to hear Cohen's direct examination.
New York Attorney General Letitia James is also back in the courtroom for the second day of Cohen's testimony.
Seated in the gallery behind her team of lawyers, James encounters Trump each time he enters and exits the courtroom, though it appears the two rarely make eye contact.
Michael Cohen to return to witness stand
Former Trump attorney Michael Cohen is set to face a grueling day of cross examination, as defense lawyers attempt to discredit him after his potentially damaging testimony yesterday.
Calm and confident when answering questions from a state lawyer, Cohen dealt a blow to his former boss early in his testimony yesterday when he said he "reverse engineered" Trump's financial statements to "achieve the number" Trump wanted, inflating the values of assets such as Trump Park Avenue, Trump World Tower, and the Miss Universe Pageant to achieve Trump's desired figure -- though his testimony was notably devoid of notes, communications, or draft financials to support his claims.
Trump's lawyer Alina Habba hammered at Cohen's inconsistencies during the first hour of cross-examination, confronting Cohen with his past guilty pleas and history of false testimony. A disbarred lawyer, Cohen's answers grew combative at times, often responding to questions with "objection" or "asked and answered."
Trump said in a Truth Social post this morning that he plans to attend court for a second day in a row. In a social media post overnight, he described Cohen's testimony yesterday as a "complete and total disaster."
New York Attorney General Letitia James offered a contrasting opinion of Cohen's testimony in a video statement posted to social media.
"Donald Trump lives in a fantasy land. He directed those around him to lie and scheme to make his fantasy a reality," James said.
Cohen combative during forceful cross-examination
Michael Cohen underwent a forceful cross-examination by Trump attorney Alina Habba in the day's final court session.
"You are not on Mea Culpa. You are not on your podcast, and you are not on CNN. You're here with me," Habba instructed Trump's former attorney during the questioning.
Compared to Cohen's direct examination -- when Trump could often be seen conferring with the lawyers by his side, examining exhibits, or passing notes around -- Trump had a more positive demeanor during the cross.
Cohen himself grew combative at parts of the questioning, responding "objection" and "asked and answered" as if he were a lawyer at counsel table, rather than a witness on the stand.
"You have lied under oath numerous times, isn't that correct, Mr. Cohen?" Habba asked at one point.
"That is correct," Cohen replied.
Habba even admitted that she was enjoying herself during the questioning, after Judge Engoron offered to cut testimony short for the day.
"It is entertaining -- I am happy to go all night," Habba said.
Exiting court at the end of the afternoon, Cohen declined to comment about the ongoing cross-examination.
"He's a disgraced felon, and that's the way it's coming out," Trump said on his way out.
'This witness is out of control,' Trump attorney says of Cohen
Trump attorney Alina Habba began her cross-examination by having Michael Cohen recount the criminal acts related to his 2018 guilty plea.
"Mr. Cohen, what did you respond?" Habba asked while reading a transcript from his 2018 plea proceeding.
"Guilty, your honor," Cohen said aloud in court.
Habba also read from a sentencing memorandum related to Cohen's plea in which prosecutors wrote that Cohen's crimes "were marked by a pattern of deception that permeated his professional life."
When Habba asked if Cohen lied to his wife about evading taxes, Cohen responded by saying "objection" and attempting to cite legal precedent.
"You can't object. It's a yes or no question," Habba said.
"He is a serial liar, and he lied to his wife," defense lawyer Chris Kise told the judge about why the question is relevant. He later added, "This witness is completely out of control."
Trump loses bid to throw out limited gag orders, fines
Donald Trump has lost his appeal to throw out the limited gag orders and associated fines in his civil fraud trial.
In a decision Thursday, New York's Appellate Division, First Department rejected Trump's request to annul and vacate the limited gag orders imposed by Judge Arthur Engoron that prohibit Trump and attorneys from commenting on the judge's staff.
In November, Trump's lawyers asked the Appellate Division to vacate the gag orders, citing a provision of New York state law to personally sue Judge Engoron. But the court said in today's ruling that the method used to appeal the gag orders was an improper application of the law.
"To the extent there may have been appealable issues with respect to any of the procedures the court implemented in imposing the financial sanctions, the proper method of review would be to move to vacate the Contempt Orders, and then to take an appeal from the denial of those motions," the ruling said, indicating that Trump should use the normal appellate process to pursue the vacating of the gag orders.
The court also determined that the "extraordinary remedy" requested by Trump's lawyers did not match the minimal potential harm from barring statements about Engoron's staff.
"Here, the gravity of potential harm is small, given that the Gag Order is narrow, limited to prohibiting solely statements regarding the court's staff," the decision said.