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.
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
Former Trump attorney Michael Cohen has begun his testimony in his former boss' civil fraud trial.
Sitting at a cramped counsel table between his lawyers, Trump is about ten feet from his former lawyer and so-called "fixer."
The courtroom itself is at capacity, with attendance appearing to exceed the number of observers during the trial's opening statements.
When Mazars USA said that Trump's financial statements were no longer reliable in 2022, the accounting firm did not conduct an audit or identify any "material discrepancies" in Trump's statements, Mazars General Counsel Bill Kelly testified.
"As we have stated in the Statements of Financial Condition, Mazars performed its work in accordance with professional standards. A subsequent review of those workpapers confirms this," Kelly wrote in a 2022 letter to the Trump Organization entered into evidence.
Both Trump and his lawyer Jesus Suarez seized on the admission from Mazars.
During cross examination, Suarez displayed multiple financial statements and repeatedly asked Kelly about the lack of discrepancies identified in the statements. Exiting court for a break, Trump also focused on that portion of the testimony.
"They found no discrepancies, there was nothing wrong with the financials," Trump said, alleging that his former accountants were "abused" and "hurt very badly" by the New York attorney general.
Trump's accounting firm resigned from engagements with the Trump Organization in 2021 after learning it could no longer rely on former CFO Allen Weisselberg, Mazars USA General Counsel Bill Kelly testified.
The next year, Mazars determined that Trump's statements could no longer be relied upon following a filing related to New York Attorney General Letitia James' investigation of the Trump Organization.
"When the NYAG filed a paper in court, you took them at their word and never once conferred with your client?" defense attorney Jesus Suarez asked during his cross examination of Kelly, adding that Trump paid Mazars millions before their relationship ended.
"You just kicked them to the curb, right?" Suarez added, alleging that Mazars tried to "curry favor" to avoid legal problems with authorities.
"We did not kick them to the curb," Kelly responded.
The cross examination of Kelly appeared to test the patience of Judge Engoron, who interrupted the questioning twice.
"That has been asked about five times already," Engoron said at one point. At a later point, he added, "Asked and answered many times. Yes, they were paid."
Trump lawyer Chris Kise continued to spar with state attorney Louis Solomon during the testimony of Mazars General Counsel Bill Kelly.
After Solomon objected to a question posted in Kelly's cross-examination, Kise interjected to call out Solomon for being hypocritical about the bounds of acceptable testimony.
"Everything in this courtroom concerns me and my client, including your health," Kise said, referring back to his earlier concern about a courtroom COVID-19 outbreak.
"Thanks for your concern," Solomon responded offhandedly.
Trump and his attorneys have adjusted their seating compared to past days, possibly due to health concerns, so that Trump and Kise are sitting further from the state attorneys.
