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
Trump storms out after Cohen reverses testimony
Former President Trump stormed out of courtroom after the judge denied his request for an immediate directed verdict to end the trial.
Defense attorney Clifford Robert asked Judge Engoron to end the trial after Michael Cohen offered contradictory testimony about his 2019 testimony in front of Congress.
During his 2019 testimony, Cohen was directly asked, "Did Mr. Trump direct you or Mr. Weisselberg to inflate the numbers for his personal statement?" referring to then-Trump Organization CFO Allen Weisselberg.
"Did he ask me to inflate the numbers? Not that I recall," Cohen responded.
Confronted with this testimony before today's lunch break by Alina Habba, Cohen testified that he lied during the 2019 testimony.
Shown the same testimony again by Robert after lunch, Cohen reversed course.
"I stand with that response, not that I recall, no," Cohen said, indicating his 2019 testimony was truthful.
Sitting at the counsel table, Trump mumbled inaudibly, threw up his hands, and gestured to Robert, who walked over to Trump from the lectern where he was questioning Cohen.
Trump and Robert whispered for roughly ten seconds, after which Robert returned to the lectern and asked for a directed verdict.
"I can't think of anything more appropriate now," Robert said.
"Denied," Engoron immediately responded.
Trump immediately stood up, turned around, and marched out of the courtroom flanked by Secret Service agents.
"The witness just admitted that we won the trial, and the judge should end this trial immediately," Trump told reporters as he entered the hallway.
'Don't do it again or it will be worse,' judge tells Trump
"Don't do it again or it will be worse," Judge Engoron told former President Trump after fining him $10,000 for violating the limited gag order he imposed prohibiting comments about his staff.
The judge made the comment after Trump's lawyers raised concerns with the sanction.
Trump attorney Chris Kise specifically criticized Engoron for not believing Trump's testimony, which the judge described as "not credible."
"I think the speaker needs to be taken at face value," Kise said.
Trump attorneys Alina Habba and Clifford Robert also criticized how closely Engoron appears to work with his clerk during the trial, which they described as unorthodox.
"I make the final decisions. I value input from both of my law clerks. Every judge does things differently," Engoron said.
When Trump took the stand, the former president sat still but appeared unfazed by the sudden turn of the events.
While Engoron issued his ruling, Trump sat with his arms crossed at the counsel table and briefly conferred with Kise.
Trump, after testifying, fined $10,000 for violating gag order
Judge Engoron fined former President Trump $10,000 for violating a limited gag order after deciding that Trump referred disparagingly to his law clerk during a statement in the hallway.
Trump briefly took the witness stand, raising his hand and stating his name, "Donald John Trump, New York."
Engoron asked Trump, "Did you say, 'This judge is a very partisan judge with a person who is very partisan sitting alongside of him?'"
Trump responded "Yes," but insisted he was referring to Michael Cohen, who was seated next to the judge in the witness chair.
"You sure you didn't mean the person on the other side?" Engoron asked, referring to his law clerk, whom Trump previously disparaged in a social media post that the judge ordered him to take down as part of the limited gag order he imposed earlier in the trial.
"Yes, I'm sure," Trump answered.
Trump conceded his social media post was "maybe unfair" but he added he thinks "she's very unfair."
Engoron decided Trump's hallway statement must have referred to his clerk because "there's a barrier" between the bench and Cohen, and he suggested Trump would have called Cohen by name.
The defense immediately balked at the fine.
"I just don't think there's any clear record here," defense attorney Chris Kise said.
Trump takes stand for gag order hearing
Trump been sworn in as a witness for a hearing Judge Engoron is holding on whether he violated the limited gag order Engoron imposed earlier in the trial.
The former president then took the stand.
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?"