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
'This is not a political rally,' judge warns
"Mr. Kise -- can you control your client? This is not a political rally. This is a courtroom," Judge Engoron told Trump attorney Chris Kise following a politically charged answer from the former president. He added, "Maybe you should have a talk with him right now."
State attorney Kevin Wallace then restated his question, and Trump responded briefly. Within minutes, Engoron grew frustrated again.
"Stricken, stricken, stricken," the judge shouted from the bench.
'Please just answer the questions,' judge says
Asked by State attorney Kevin Wallace about his 2014 statement of financial condition, Trump took a swipe at Judge Engoron.
"First of all, it's so long ago -- this is well beyond the statute of limitations," Trump said. "But I'm sure the judge will rule against me because he always rules against me."
Engoron, who had already directed Trump to answer concisely and avoid lengthy narrative responses, stepped in, addressing Trump's attorney Christopher Kise.
"Mr. Kise, was that relevant to the narrative?" he asked.
"This is an unusual situation and an unusual trial," Kise replied. "I think it's fair for the court to hear his position. I certainly think it's fair for the American people to hear his position."
"The comment that I always rule against him ... certainly didn't answer the question," Engoron said. "You can attack me -- you can do whatever you want. Please just answer the questions."
'All Trump haters,' Trump calls attorneys
Less than 10 minutes into his direct examination, Donald Trump took an opportunity to criticize the investigations and prosecutions that have dogged his life after the presidency.
"You and every other Democratic district attorney, AG, U.S. Attorney were coming after me from 15 different sides. All Democrats, all Trump haters," Trump said unprompted.
State attorney Kevin Wallace attempted to begin his direct examination by asking Trump his revocable trust -- the mechanism that Trump used to prevent business conflicts during his presidency.
"I thought there may be a conflict of interest, so I formed the trust," Trump said, describing his son and trustee Donald Trump Jr. as "a hard working boy, young man."
Asked about former Trump Organization CFO Allen Weisselberg, who also was a trustee, Trump spoke highly of his former employee, who later pleaded guilty to tax evasion.
"He did a good job, he was very good at what he did," Trump said. "We really liked him for a long time.'
Trump said that he briefly resumed control of his trust in 2021 before returning control back to Donald Trump Jr. so he could return to politics.
"He was impressive in business, as was Eric. I thought that I would do that while I continue en route to politics," Trump said before decrying the political motivation of his multiple criminal cases.
Judge Arthur Engoron has already advised Trump to limit the length of his answers.
"I would like things to move along a little faster. Please answer the questions, no speeches," Engoron said.
'The numbers are much greater,' Trump says
"This is all ridiculous," Trump told reporters on his way into the courtroom, regarding the trial.
"The numbers are much greater than on the financial statement," he said of the New York attorney general's accusation that he overvalued his properties on this statements of financial condition, before going on to call New York AG Letitia James, who is Black, a racist who has "made some terrible statements."
Trump's closing argument in doubt after heated email exchange
Former President Donald Trump's plan to deliver part of his closing argument Thursday, as reported yesterday by ABC News, is now in doubt after he failed to meet a deadline to agree to limitations imposed by Judge Arthur Engoron.
According an email exchange between Engonon and defense counsel that was posted to the public docket Wednesday, Engoron said that Trump would have to follow the case's limited gag order, and that he would not be allowed to "impugn" the New York attorney general or her staff -- limitations that Trump attorney Chris Kise rejected, calling them "untenable."
"The limitations I am imposing, in my absolute discretion, are not subject to further debate. Take it or leave it," Engoron replied on Jan. 9, according to the email thread.
When Trump's lawyers missed the first deadline set by Engoron, the judge determined that Trump could not testify. Kise then responded that he did not see the deadline and requested that the closing arguments be postponed because of the death of Melania Trump's mother on Tuesday.
"I am sad to advise the Court that Mrs. Trump's mother passed away this evening. Because of the challenges presented by this deeply personal family matter, President Trump has asked that I request the Court postpone the date for closing argument," Kise wrote yesterday.
Engoron promptly denied the request and said the closings would continue as planned.
"On balance, going forward makes the most sense. Please tell Mr. Trump that I am sorry," Engoron wrote.
Kise informed Engoron that Trump still planned to attend the closings and speak.
"Despite the fact that his Mother-in Law, who he was very close to, passed away late last night, President Trump will be speaking tomorrow," Kise said in an email this morning.
When Engoron asked for assurance that Trump agreed to his rules, Kise pushed back, writing, "You are not allowing President Trump, who has been wrongfully demeaned and belittled by an out of control, politically motivated Attorney General, to speak about the things that must be spoken about."
"I won't debate this yet again. Take it or leave it. Now or never. You have until noon, seven minutes from now. I WILL NOT GRANT ANY FURTHER EXTENSIONS," Engoron replied at 11:54 a.m.
After Kise failed to respond, Engoron emailed him at 12:12 p.m. that he assumed Trump would not be speaking and that their email exchange would be posted to the court's public docket.
Responding to the development, Trump's legal spokesperson, Alina Habba, said in a statement to ABC News: "Is anyone surprised anymore?"