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

Earlier in his testimony, before breaking down on the witness stand, longtime Trump Organization controller Jeff McConney drew a blank when asked why Trump's Mar-a-Lago property was valued in Trump's statements of financial condition as a private residence rather than a social club -- a central allegation levied by the New York attorney general.

The property was valued in excess of $500 million on the basis that it could be sold as a private residence -- despite Trump signing a deed in 2002 with the National Trust for Historic Preservation that exclusively limited the property to being used as a club. The Palm Beach County Assessor subsequently appraised the market value of the club at less than $28 million, significantly lowering Trump's tax burden.

"I don't remember off the top of my head," how the property ended up being valued on Trump's financial statements as a residence, McConney said, confirming that was the case.

He testified that he could not remember having a specific conversation with outside accounting firm Mazars USA about the approach to valuing Mar-a-Lago.

While McConney could not recall why the decision to value the property as a private residence was made, he said that he used a reasonable approach to determining a price-per-acre based on nearby property sales. He said that their comparable property approach resulted in a $50 million decrease in value between 2014 and 2015.

"Our intention was always to reflect as best we could the value of these properties," McConney said.

Former Trump Organization comptroller Jeff McConney broke down on the witness stand during his testimony for the defense, saying that it's "just really frustrating" to have his decades of accounting work called into question by investigators.

McConney said he felt proud of his years at the Trump Organization and testified that he "felt comfortable" with his contributions to Trump's statements of financial condition that are at the center of the case.

"I feel proud of what I did. Numbers don't represent fully what these assets are worth," McConney said.

He threw up his hands and choked up after defense attorney Jesus Suarez asked him why he no longer worked at the Trump Organization. McConney ticked off the list of subpoenas, depositions and investigations he has been part of, and said "I just couldn't do it anymore."

McConney described working at the Trump Organization as being like working with family, and said he "got to do a lot of things that a normal accountant wouldn't be able to do," like takes trips to Atlantic City, attend coworkers' weddings and work on "The Apprentice."

"I just wanted to relax and stop being accused of misrepresenting assets of the company I've been working for," McConney said. "To be hit with a negative comment every time is just really frustrating."

McConney briefly held his head down, wiped his eyes and quietly sobbed. "I'm sorry," he said.

"Mr. McConney, you OK or you need a couple of minutes?" Judge Arthur Engoron asked.

McConney declined to take a break.

Longtime Trump Organization controller Jeffrey McConney, in response to the New York attorney general's allegations that the Trump Organization ignored multiple appraisals that would have significantly decreased the value of their assets, testified that some appraisals had specific purposes outside of valuing properties.

"They are done for a specific purpose," McConney said, acknowledging that some appraisals valued overall properties while others were specifically ordered for limited tax purposes.

"Just because an appraisal was done, does not mean it reflects the value of that property," McConney said, explaining that appraisals related to conservation easements were "not done to value the property."

McConney appeared to acknowledge that the Trump Organization choose to ignore a 2015 appraisal that valued its 40 Wall Street property at $540 million, while Trump valued the property in his financial statement at $735 million.

"We didn't think this valuation property reflected what the building was worth," McConney said.

Asked if the Trump Organization provided the appraisal to their outside accountant Donald Bender of Mazars USA, McConney responded, "If he wanted them, he could have had them."

Former Trump Organization controller and co-defendant Jeffrey McConney is set to return to the witness stand to conclude his testimony this morning.

When he returned to the stand as a witness for the defense yesterday, he testified that he relied on the firm's accountants at Mazars USA to put together the statements of financial condition that are at the center of the case, continuing what appears to be the defense's strategy of placing responsibility on outside accountants.

"Whatever he asked for, we would do," McConney said of longtime Mazars accountant Donald Bender.

McConney is the only witness scheduled to testify before the court takes an extended Thanksgiving break. Once his testimony concludes, the court is set to adjourn until it resumes on Monday following the holiday.