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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Former Trump Organization VP to continue testimony

Former Trump Organization Vice President Raymond Flores is scheduled to return to the witness stand this morning.

Flores’ testimony, which began on Oct. 20, was postponed after a COVID-19 exposure delayed proceedings last week.

Flores was asked during his testimony earlier this month about his role in reviewing Trump’s financial statements and overseeing his golf courses, but said he could recall few details about his work in those areas.


Trump pays $15,000 in gag order fines

Former President Donald Trump's lawyers have paid $15,000 to the New York Lawyers' Fund for Client Protection on behalf of the former president for his two gag order violations.

Judge Arthur Engoron fined Trump twice for violating his limited gag order prohibiting public statements about members of his staff.

Trump was fined $10,000 this week for a statement he made to reporters in court, which Engoron determined was in reference to his clerk. He was fined $5,000 last Friday for inadvertently keeping a Truth Social post -- which prompted the initial gag order -- on his campaign website after deleting it from his Truth Social account.

"Without waiving any rights or remedies, including, without limitation, any rights to appeal said orders, on behalf of our client, we enclose herewith a check from our attorney trust account in the amount of $15,000 in accordance with the court's orders," defense lawyer Alina Hanna wrote in a filing posted today.

Trump's lawyer Chris Kise signaled in court Thursday that Trump will likely appeal the most recent $10,000 violation.


Tax lawyer Sheri Dillon concludes testimony

State attorney Louis Solomon concluded his direct examination of tax lawyer Sheri Dillon after a series of questions about an appraisal of former President Donald Trump’s Seven Springs estate in New York.

A 2015 appraisal of the estate valued the entire property at $56.5 million, according to documents presented at trial, though Trump’s financial statements valued the property between $261 and $291 million from 2011 to 2021.

Dillon, who Judge Arthur Engoron deemed a hostile witness Thursday, struggled to recall with whom at the Trump Organization she might have discussed the appraisal. She added that she could not recall if she mentioned the appraisal in relation to the value of the estate in Trump’s financial statements.

“I have no idea if I told them the [appraised] value of the property,” Dillon testified. She later added, “It’s not like every Monday we talk about conservation easements.”


AG sets schedule for testimony from Donald Trump, his children

New York Attorney General Letitia James will likely rest her case against former President Donald Trump during the week of Nov. 6 following at least four days of testimony from Trump and his children.

State attorney Kevin Wallace told Judge Arthur Engoron that the state plans to call Donald Trump Jr. on Wednesday, followed by Eric and Ivanka Trump on the following Thursday and Friday, respectively.

The state’s final witness, the former president, will likely begin his direct examination on Monday, Nov. 6, according to Wallace.

“We like to keep families together,” Engoron joked as Wallace set the schedule.

Trump’s lawyer, Chris Kise, previously told ABC News that he plans to recall some Trump Organization witnesses for the defense’s own case, meaning the trial is likely to stretch into November or later before concluding.


Rebuttal witness assails Trump's disclosures

State attorney Kevin Wallace concluded his direct examination of the New York attorney general's second and final rebuttal witness amid frequent objections by defense lawyers.

Lewis attempted to explain how Donald Trump's statements of financial condition failed to disclose that he did not conduct a discounted cash flow analysis, contributing to the over-valuation of some of his assets.

"There is no mention of discounting or future value in the disclosure," Lewis said, disagreeing with testimony from defense expert Jason Flemmons -- as well as former Mazars USA accountant Donald Bender, who testified as a state witness.

“Are you impeaching your own witness?” Engoron asked state attorneys regarding whether Bender’s testimony should no longer be considered credible.

"We didn't feel the need to," Wallace responded.

Lewis also suggested that Trump's external accountants at Mazars had less of an obligation to highlight issues that Flemmons suggested, since they were only conducting a compilation report rather than a more intensive audit. While Mazars had an obligation to flag obvious issues, they were not responsible for ensuring Trump's statements were compliant with generally accepted accounting principles, he testified.

"If while doing the compilation ... something comes to the attention of the accounts that could be a GAAP departure, they have a responsibility to bring that issue to the client," Lewis said regarding generally accepted accounting principles.

During the hour-long direct examination, defense lawyers objected at least 14 times, successfully interrupting the line of questions.

"I am lost," Engoron asked at one point. "Can you put this together?"

The parade of objections visibly irritating Wallace, who voiced his displeasure.

"Petulant outbursts don't really play well in the courtroom," quipped Trump lawyer Chris Kise in response.