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
Ivanka Trump benefited from fraud, NY AG says
Speaking to reporters outside court this morning, New York Attorney General Letitia James said that today's testimony will demonstrate that Ivanka Trump personally benefited from the fraud that a judge has ruled her family committed.
"We uncovered the scheme and she benefited from it personally," James told reporters. "And Ms. Trump will do all that she can to try to separate herself from his corporation, but she is inextricably tied to the Trump Organization and to these properties that she helped secure financing for."
James has taken a seat in the front row of the courtroom's gallery, feet from her team of lawyers at the state's counsel table.
NY AG's chief real estate lawyer to question Ivanka Trump
Louis Solomon, the chief of the New York attorney general's real estate finance division, is expected to lead the questioning of Ivanka Trump.
Solomon led Ivanka's Trump deposition in August 2022, where she denied being involved in her father's financial statements that are at the center of the case.
Earlier in the trial, Solomon led a contentious direct examination of former Trump Organization CFO Allen Weisselberg, who frequently struggled to answer questions about who was responsible for various financial decisions at the company.
Solomon has frequently sparred with Donald Trump's lawyers during the trial, including a heated exchange after multiple members of the state team tested positive for COVID-19 during the proceedings.
"Everything in this courtroom concerns me and my client, including your health," defense lawyer Chris Kise said.
"Thanks for your concern," Solomon responded offhandedly.
Ivanka Trump arrives at courthouse
Ivanka Trump has arrived at the New York State Supreme Courthouse, where she was greeted by a crowd of photographers ahead of her testimony this morning.
She did not make a statement outside court.
The eldest daughter of former President Trump is scheduled to take the stand at around 10 a.m. ET.
Crowd of reporters awaits Ivanka Trump outside court
A sizeable group of reporters is huddling outside the New York State Supreme Courthouse in lower Manhattan awaiting the arrival of Ivanka Trump on a chilly 42-degree morning.
Moderately smaller than the crowd that waited her father on Monday, photographers and court reporters are crammed in a narrow maze of metal barriers that police have assembled outside the building for the trial. The security arrangement, which has been utilized any time a Trump family member has appeared in court, has become a regular part of life for reporters covering the trial and a curiosity for tourists exploring downtown New York.
"Is this the line to see Donald Trump?" a passerby asked this morning.
"Yes, but he's not here today," a reporter responded to the visibly disappointed tourist.
Trump to attend court, still hopes to present closing statement
Donald Trump is set to attend his civil fraud trial today, where he still hopes to participate in the defense's closing statement despite Judge Arthur Engoron rejecting that request yesterday.
The former president last night dismissed the idea that spending time in the courtroom is impacting his campaign ahead of Iowa caucuses and New Hampshire primary.
"No -- we're leading by record numbers," Trump told ABC News.
The defense team's closings are scheduled to take place from 10:15 a.m. ET to 12:45 p.m. ET, while the state's closing is scheduled from 2:15 p.m. ET to 4:30 p.m. ET.
The defense plans to use most of its allotted time, and the attorney general's office has indicated their closing statement would run roughly one hour, according to emails shared on the court's docket yesterday.