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.
Top headlines:
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
'We have a busy day,' judge says as court gets underway
"We have a busy day and a busy week, so let's try to move things along," Judge Engoron remarked as he brought the courtroom to order to begin the day's proceedings.
"Would you like to continue your witness?" Engoron asked state attorney Eric Haren.
"We would," said Haren, before calling back to the stand former Trump Organization vice president David Orowitz, who began his testimony yesterday afternoon.
Defense attorneys Chris Kise, Alina Habba, and Jesus Suarez are sitting at the counsel table, leaving one seat available for Donald Trump Jr., who has not yet appeared ahead of his scheduled testimony this afternoon.
Trump rails against judge, gag order
Former President Trump continued to attack Judge Engoron this morning, calling him "crazy, totally unhinged, and dangerous" on his Truth Social platform.
"He then put a RIDICULOUS GAG ORDER ON ME, which we will appeal. He fines me at levels never seen before," Trump wrote this morning.
Trump recently paid $15,000 in fines related to two violations of the limited gag order Engoron established that prohibits public statements about the judge's staff.
Trump also complained about the potential fine that Engoron could impose in the case. During court yesterday, the judge remarked that disgorgement -- fining Trump for profits made through fraudulent means -- is a "clearly available remedy" in the case.
"Now they come up with something called 'disgorgement.' I never even heard of the term," Trump said.
Engoron already ruled in a partial summary judgment that Trump had submitted "fraudulent valuations" for his assets, leaving the trial to determine additional actions and what penalty, if any, the defendants should receive.
'Leave my children alone,' Trump says ahead of sons' testimony
Former President Trump attacked Judge Arthur Engoron and New York Attorney General Letitia James on social media ahead of today's expected testimony from his son Donald Trump Jr.
"Leave my children alone, Engoron. You are a disgrace to the legal profession!" Trump wrote overnight on his Truth Social platform.
Donald Trump Jr. is expected to begin his testimony in the afternoon today.
If that testimony concludes today, his brother Eric Trump could also begin his testimony.
Both of them are executive vice presidents in the Trump Organization.
Expert witness may take the stand Wednesday before Don Jr.
Day 20 of the trial wrapped up with testimony from former Trump Organization vice president David Orowitz, who testified about what he said was Ivanka Trump's significant involvement in loan negotiations related to Trump's Doral Golf Club in Miami and the Trump International Hotel in Chicago over a decade ago.
Ivanka Trump, who at the time was a vice president in the Trump Organization, was dismissed from the AG's lawsuit in June because she was no longer with the firm by 2016 -- though she is still scheduled to testify next week as the final witness for the state's case.
State attorneys had initially planned to complete the testimony of Orowitz, as well as that of expert witness Michiel McCarty, by the end of today -- but Orovitz's lengthy testimony kept that from happening.
As a result, their remaining testimony will either delay tomorrow's much-anticipated testimony from Donald Trump Jr. -- or it will be pushed to a different day.
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?"