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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Trump's empire 'built on lies,' AG says after court ends for the day

After court adjourned for the day, New York Attorney General Letitia James offered one of her firmest repudiations of the former president's claims.

"He can call me names, he can engage in distractions, but at the end of the day ... his entire empire was built on nothing but lies and on sinking sand," James told reporters outside the lower Manhattan courthouse.

Trump has frequently targeted James in his comments during courtroom breaks, criticizing her efforts as politically motivated and pushing an unfounded theory that the case against him is part of a plot of interfere in the 2024 election.

"This is an attorney general ... that went out and campaigned on 'I will get Trump,'" Trump said before entering court this morning, repeating attacks that he's made on social media.

James fired back that her team has repeatedly demonstrated that Trump committed fraud, both in the first two weeks of the trial, as well as in Judge Arthur Engoron's pretrial ruling about Trump's fraudulent financial statements.

"He will again attempt to distract each and every one of you, attempt to raise his voice and scream," James told reporters. "But at the end of the day, justice will be served, and I'm confident that victory will be mine."


Trump leaves court early

Former President Trump did not return to court after the mid-afternoon break, leaving his attorneys alone at counsel table for the cross-examination of professional appraiser Doug Larson.

The former president departed from the lower Manhattan courthouse in his motorcade.

Trump is scheduled to sit for a deposition today related to a civil lawsuit brought by former FBI agent Peter Strzok and former FBI attorney Lisa Page. Strzok filed suit against the Justice Department and the FBI in 2019, claiming his First Amendment rights were violated when he was wrongfully terminated the year before over private text messages with Page that reflected anti-Trump sentiments.


Exec's testimony shows 'illicit agreement or scheme,' state argues

State attorney Eric Haren has filed a letter with the court arguing that Trump Organization executive Patrick Birney's testimony yesterday about Trump's net worth should be admissible.

During his testimony, Birney claimed that CFO Allen Weisselberg told him that "Mr. Trump wanted his net worth on the statement of financial condition to go up." Trump lawyer Chris Kise immediately objected to the statement as hearsay.

Judge Engoron then asked both parties to submit two-page memos by today, regarding whether the statements from Birney are hearsay.

"Regardless of its truth, Mr. Weisselberg's statement tends to show the existence of an illicit agreement or scheme," Haren wrote in his letter to the judge.

Haren argued that since Weisselberg is alleged to be a co-conspirator who carried out his "illicit objectives" through Birney, the statement should be considered admissible.


'Cohen didn't have the guts,' to testify, Trump says

While exiting court for a break, former President Trump took a swipe at his former lawyer Michael Cohen, who delayed his testimony in the ongoing trial.

Cohen was scheduled to testify on Tuesday, but postponed his testimony due to a medical issue.

"Cohen didn't have the guts," Trump told reporters in the hallway outside the courtroom.

Trump also continued his criticism of the law used by New York Attorney General Letitia James to bring the case, which he said "doesn't give me any rights whatsoever."

"I'm the victim here," Trump said.


Defense calling real estate expert to stand

Donald Trump's lawyers are calling real estate expert Robert Unell as a witness this morning.

Unell is one of several defense experts who submitted reports to the court disputing the New York attorney general's findings that Trump committed fraud in the statements of financial condition he provided to lenders.

"The financial information provided to the lenders was correct in all material respects and contrary to the Plaintiff's allegations, therefore the Defendants did not receive any financial benefits on commercial real estate loans based on the submission of any false, inflated, or misleading valuations," Unell wrote in his expert report.

Unell, in the deposition he gave to the defense, also defended Trump's use of a disclaimer -- which Trump has said is sometimes referred to as a "worthless clause" -- that warned lenders that Trump's statements might contain information that does not comply with standard accounting practices.

"I first read it in President Trump's deposition," Unell said regarding Trump's use of the "worthless clause" phrase. "And it kind of stuck. Because, quite honestly, I had never heard it called that, but it is truly what the meaning of it is."