Trump civil fraud case: Judge fines Trump $354M, says frauds 'shock the conscience'

Judge Engoron will hear arguments Friday morning about Ivanka Trump's efforts to quash three subpoenas related to her potential testimony at her father's civil trial.

In September, the New York attorney general's office attempted to compel Ivanka Trump to testify by sending subpoenas to three corporate entities related to her. Her lawyer, Bennet Moskowitz, filed a motion last week to quash the subpoenas, which he argued lacked jurisdiction.

Ivanka Trump was originally included in the attorney general's $250 million lawsuit, along with her father and brothers, before an appeals court dismissed her from the case in June because she was no longer part of the Trump Organization by 2016.

Donald Trump, in 2014, valued his Los Angeles golf club at over $100 million more than the amount it was appraised at, according to evidence shown in court.

Trump's former tax attorney, Sheri Dillon, testified that when working on a conservation easement for the driving range at Trump National Golf Club in Los Angeles in 2014, she received an appraisal that valued the entire club at $107 million.

However, the spreadsheet used to create Trump's financial statements placed the value of the golf club at $213 million that same year, according to documents entered into evidence.

Shown the document during her testimony, Dillion said she was unfamiliar with it.

"I have never seen this document. I don't even know what this is," she said when she was shown the spreadsheet, which Trump Organization controller Jeffrey McConney previously testified he maintained.

When state attorney Louis Solomon attempted to highlight the alleged overvaluation, their exchange grew combative.

"We have the right to treat her as a hostile witness," Solomon said -- a request that was granted by Judge Engoron.

"Did you ever discuss with anyone at the Trump Organization the valuation of [the golf club]?" Solomon asked Dillon at one point.

"I don't recall. Over the years, I am sure it came up at some point," Dillon said, though she could not recall if she directly discussed it with then-Trump Organization CFO Allen Weisselberg.

Court was subsequently adjourned for the day, with Dillon's testimony scheduled to resume tomorrow morning.

The sworn testimony of former President Trump in court yesterday was "hollow and untrue," according to a written order issued today by Judge Engoron.

The order, which memorializes yesterday's ruling that Trump violated the case's limited gag order, offers a stronger repudiation of Trump's sworn testimony than the judge articulated yesterday, when he called Trump's testimony "not credible."

"I then conducted a brief hearing, during which Donald Trump testified, under oath that he was referring to Michael Cohen. However, as the trier of fact, I find this testimony rings hollow and untrue," Engoron wrote in his order.

Like his in-court statements yesterday, Engoron remarked that Trump's hallway statement about "a person who's very partisan sitting alongside him, perhaps even more partisan than he is" was inconsistent with how Trump frequently refers to Cohen. Going as far as to cite the Oxford English Dictionary, Engoron wrote that "alongside" is more likely to refer to his clerk than the witness, who sits below the judge.

"Using imprecise language as an excuse to create plausible ambiguity about whether defendant violated this Court's unequivocal gag order is not a defense; the subject of Donald Trump's public statement to the press was unmistakably clear," Engoron wrote.

Trump's lawyers said they plan to appeal the order.

State attorney Louis Solomon focused on the activities of The Donald J. Trump Foundation, Trump's defunct charity organization, during his direct examination of tax lawyer Sheri Dillon.

Dillon, who worked with Trump between 2005 and 2020, testified that she received a letter from the New York attorney general in 2016 regarding a potential violation by Trump's charity, which she discussed with then-Trump Organization CFO Allen Weisselberg.

Solomon's line of questioning prompted an objection from Trump's attorney Chris Kise, who argued that Trump's charity was irrelevant to the state's case. But Judge Engoron overruled the objection.

"To me, this case is not just about financial statements being submitted to insurance companies. It is about whether or not defendants were committing fraud," Engoron said. "If the evidence shows a particular defendant was consistently acting fraudulently, the law says there can be particular forms of equitable relief."

Dillon testified that she could not recall if Trump Organization executives notified potential insurers about the violation.

Then-New York Attorney General Barbara Underwood sued the Trump Foundation in 2019 for using money set aside for charitable purposes to settle business disputes and cover political expenses. Trump was eventually ordered to pay $2 million to various charities as part of a settlement.