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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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's business drew little scrutiny from bank, defense says

Deutsche Bank was a serious company in business with Donald Trump to make money, defense attorney Jesus Suarez said during his cross examination of former Deutsche Bank executive Nicholas Haigh.

At the height of its relationship with the Trump Organization the company loaned Trump over $378 million, and failed to commission independent appraisals of Trump's properties, Haigh acknowledged. While the bank listed lower estimates for the value of Trump's assets year after year, it continued to do business with Trump and his company.

"We ... the bank hadn't done all the due diligence one would do in the sense of the opinion of value you see in an appraisal," Haigh said, at one point agreeing with the defense's characterization that the bank's internal value services group conducted "sanity checks'' on the numbers.

The direct examination of Haigh by state attorney Kevin Wallace also left a central question about Deutsche Bank's activity unanswered.

In a letter to the court and in previous arguments, lawyers for the attorney general suggested that Haigh might have turned away Trump's business if he had known that Trump's assets were inflated in value.

"As this Court noted during summary judgment arguments, Mr. Haigh testified during OAG's investigation that he may not have authorized lending to the borrower if he had at that time been aware of the inflated asset values contained in Mr. Trump's SFCs [statements of financial condition]," a lawyer for the attorney general wrote to the court in a letter last week.

Wallace never directly posed the hypothetical to Haigh during his direct examination, leaving the question unresolved.

Court subsequently adjourned for the day, with Suarez telling the court he plans to continue his cross examination of Haigh through Thursday afternoon.