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.


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


Defense says it will finish presenting its case by Dec. 15

Donald Trump's lawyers plan to present a defense case that would conclude by Dec. 15, defense lawyer Chris Kise said.

Before court concluded today, Judge Engoron also advised Trump's lawyers that he would not respond positively to a motion for mistrial based on the actions of his clerk who Trump's attorneys have accused of being biased against the defense and improperly influencing the trial.

"I am directing you not to make that motion," Engoron initially said -- but then he backtracked.

"We obviously are going to be moving for a mistrial -- that is part of the plan. [But] we do not want to put anyone at risk," Trump's lawyer Alina Habba said, requesting clarity about how they can move for a mistrial without violating the case's gag order that prohibits parties from making public statements about the judge's staff.

"You can make that motion. And I'm sorry I yelled at you before," Engoron told Habba.

Court is set to resume on Wednesday with testimony from Ivanka Trump.


Trump steps down from witness stand

After testifying on and off for five hours, Donald Trump has stepped down from the witness stand after completing his direct examination.

State attorney Kevin Wallace concluded his questions by asking Trump about his former CFO Allen Weisselberg, who pleaded guilty to tax evasion, and about internal controls at the Trump Organization.

Weisselberg served three months for tax fraud after he pleaded guilty to 15 felony charges related to his compensation while working for Trump.

"People went after him viciously and violently because he worked for me," Trump said.

Trump said he only learned about Weisselberg's illegal conduct because of the Manhattan district attorney's criminal probe into the Trump Organization and Weisselberg.

"I feel very badly for him," Trump said. "He did a good job for me for a long time."

Regarding the current court case, Wallace asked, "Do you think anything needs to change at the Trump Organization because of what you learned from this lawsuit?"

"I don't think so," Trump said, but suggested he would defer to his new accounting firm.

"We will see if anything will come of it," he said.


Trump displays sharp recall of decade-old transactions

In a workmanlike tone contrasting with the day's initial vitriol, Trump has been issuing mostly terse responses to the state's questions about his properties in Chicago and Washington, D.C.

While earlier witnesses, including Trump's sons and key Trump Organization executives, often struggled to recall details of transactions while on the stand, Trump has been demonstrating a sharp recollection of decade-old transactions and emails.

State attorney Kevin Wallace marched through a series of questions about loan documents related to those properties, with the former president cooperating with his line of inquiry.

When Wallace brought up the loan agreement for a Trump-owned building in Chicago, Trump launched into a defense of the loan, which he said he paid off in full and ahead of schedule.

"This loan was paid off in full, with no default, no problem," Trump said. "It was a very successful loan ... so the bank was thrilled."

"There was no victim," Trump added.



'I've had a lot of cash,' Trump says about his net worth

Testimony has resumed following the lunch break, with state attorneys asking the former president about his net worth as it related to loan requirements.

Trump agreed to maintain a net worth of $2.5 billion and cash in excess of $50 million when Deutsche Bank granted him a loan in 2011 for his Trump National Doral golf club, according to documents entered into evidence.

Asked about those covenants -- which Trump satisfied by certifying his financial statements -- Trump only addressed the cash on hand.

"They always want to make sure the cash was substantial," Trump said, claiming that he had $300 to $400 million in cash at the time.

"I've had a lot of cash for a long time," Trump said. "That is all they cared about."


Insurance underwriter to testify

An underwriter who worked on a Trump Organization insurance policy to cover legal expenses incurred by the firm's executives is scheduled to testify this morning.

Michael Holl, an underwriter at Tokio Marine HCC, worked on the Trump Organization's Directors and Officers insurance policy in 2016 and 2017, according to the New York attorney general.

With Donald Trump about to be inaugurated president at the time, the Trump Organization attempted to increase their policy's limit to $50,000,000, which was ten times higher than their previous limit, according to the attorney general.

"In response to specific questioning from the underwriters, the Trump Organization personnel represented that there was no material litigation or inquiry from anyone that could potentially lead to a claim under the D&O coverage," the state alleged in their complaint.

However, four months before that representation was made, Trump Organization executives learned about an ongoing investigation by the attorney general into the Trump Foundation as well as Trump family members, according to the complaint.