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
'There's enough evidence to fill this courtroom,' says judge
Judge Arthur Engoron vehemently denied the defense's request to end the trial following former Trump attorney Michael Cohen's contradictory testimony.
"The government's key witness has fallen flat on his face," Trump attorney Clifford Robert said when requesting the case be dismissed.
"Absolutely denied. This case has evidence, credible or not, all over the place," said Engoron, who disagreed that Cohen was the case's star witness.
"There's enough evidence to fill this courtroom," Engoron said.
During Cohen's redirect examination, state attorney Colleen Faherty attempted to square Cohen's inconsistent answers by asking about his 2019 congressional testimony again. Cohen testified yesterday that he was "tasked by Trump" to inflate Trump's reported net worth, then today said his 2019 testimony, in which he said Trump never directly told him to do so, was correct.
"Donald Trump speaks like a mob boss … he tells you what he wants without specifically telling you," Cohen said in explaining the inconsistent response. "We understood what he wanted."
Trump storms out after Cohen reverses testimony
Former President Trump stormed out of courtroom after the judge denied his request for an immediate directed verdict to end the trial.
Defense attorney Clifford Robert asked Judge Engoron to end the trial after Michael Cohen offered contradictory testimony about his 2019 testimony in front of Congress.
During his 2019 testimony, Cohen was directly asked, "Did Mr. Trump direct you or Mr. Weisselberg to inflate the numbers for his personal statement?" referring to then-Trump Organization CFO Allen Weisselberg.
"Did he ask me to inflate the numbers? Not that I recall," Cohen responded.
Confronted with this testimony before today's lunch break by Alina Habba, Cohen testified that he lied during the 2019 testimony.
Shown the same testimony again by Robert after lunch, Cohen reversed course.
"I stand with that response, not that I recall, no," Cohen said, indicating his 2019 testimony was truthful.
Sitting at the counsel table, Trump mumbled inaudibly, threw up his hands, and gestured to Robert, who walked over to Trump from the lectern where he was questioning Cohen.
Trump and Robert whispered for roughly ten seconds, after which Robert returned to the lectern and asked for a directed verdict.
"I can't think of anything more appropriate now," Robert said.
"Denied," Engoron immediately responded.
Trump immediately stood up, turned around, and marched out of the courtroom flanked by Secret Service agents.
"The witness just admitted that we won the trial, and the judge should end this trial immediately," Trump told reporters as he entered the hallway.
'Don't do it again or it will be worse,' judge tells Trump
"Don't do it again or it will be worse," Judge Engoron told former President Trump after fining him $10,000 for violating the limited gag order he imposed prohibiting comments about his staff.
The judge made the comment after Trump's lawyers raised concerns with the sanction.
Trump attorney Chris Kise specifically criticized Engoron for not believing Trump's testimony, which the judge described as "not credible."
"I think the speaker needs to be taken at face value," Kise said.
Trump attorneys Alina Habba and Clifford Robert also criticized how closely Engoron appears to work with his clerk during the trial, which they described as unorthodox.
"I make the final decisions. I value input from both of my law clerks. Every judge does things differently," Engoron said.
When Trump took the stand, the former president sat still but appeared unfazed by the sudden turn of the events.
While Engoron issued his ruling, Trump sat with his arms crossed at the counsel table and briefly conferred with Kise.
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.
Trump Organization exec to continue testimony
Trump Organization executive Patrick Birney will continue his testimony this morning on Day Nine of the trial.
Roughly 40 years younger than ex-Trump Organization CFO Allen Weisselberg -- his former boss and the previous witness in the trial -- Birney testified yesterday that he largely relied on Weisselberg and controller Jeffrey McConney to put together Trump's annual financial statements.
"I was not the final decision maker," said Birney, who was an assistant VP during that time period.
State attorney Kevin Wallace highlighted Birney's statements during his opening statement as evidence of an alleged conspiracy within the Trump Organization to inflate Trump's net worth.
"He likes to see it go up," Birney said, according to Wallace.
If Birney completes his testimony today, Trump Hotels chief accounting officer Mark Hawthorn is scheduled to testify next.