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


0

Trump not expected back in court today

After attending his civil fraud trial for two days this week, former President Trump does not plan to return to court today.

"We're having a very big professional golf tournament at Doral, so probably not," Trump told reporters yesterday when asked about his plans to return to court.

LIV Golf is holding a team championship at Trump's Miami, Florida, golf course this weekend, which Trump plans to attend.

He has indicted that he could return to court for the testimony of his former attorney Michael Cohen, which could happen next week.


Jack Weisselberg set to continue testimony

Day 13 of the trial is scheduled to get underway this morning with continued testimony from Ladder Capital executive Jack Weisselberg, who took the stand yesterday afternoon.

The son of former Trump Organization CFO Allen Weisselberg, who is a defendant in the case, Jack Weisselberg said yesterday that he often worked directly with his father while working on a 2015 deal to refinance the Trump Organization's $160 million mortgage of its 40 Wall Street office building.

The younger Weisselberg also described interactions with the Trump Organization executives who worked to protect the sensitivity of Trump's financial information.

"I think they were concerned about confidentiality and wanted to make sure it got into my hands," said Jack Weisselberg, describing how Trump's financial documents were sent to him via a messenger.

He also testified how, when Trump Organization executives were contemplating a 2012 loan, they appeared sensitive about making certain financial documents public -- including how much fashion brand Gucci paid in rent at Trump Tower.

"He is also nervous about Gucci's rent becoming public knowledge, as he tends to embellish from time to time," Jack Weisselberg wrote in a 2012 email that was entered into evidence, apparently referring to Trump.

"I recall it being public was a concern," Jack Weisselberg said when asked about the information referenced in the email.


'We are here to enforce the law,' says AG

New York Attorney General Letitia James denounced Donald Trump as "performative" during brief remarks outside the courthouse after court was adjourned for the day.

"He's called me disgraceful. He's called me radical. He's called me a racist, and this is only Week Three," James said of the former president.

She added that she looks forward to seeing Trump again, likely during the testimony of his former lawyer Michael Cohen, which could happen next week. Trump earlier told reporters he likely will not attend court tomorrow.

"We are here to enforce the law, and nothing will change that," James said.


Trump departs for the day

Former President Trump did not return to the courtroom following an afternoon break, and his motorcade departed the courthouse shortly thereafter.

While leaving the courtroom, Trump was asked about a court employee who attempted to approach him during the trial today and was subsequently arrested.

"The attorney general should be arrested for what she's doing," Trump said.


1st witness eyes Trump's decade-old financial statements

Testifying about the preparation of the Trump Organization's statements of financial condition in 2011, former Mazars USA accountant Donald Bender said Trump executives largely provided the input data for statements, in addition to dictating the standards by which the work was completed.

"We would cut and paste that information into a new worksheet," Bender said about the approach taken by Mazar after receiving new data from co-defendant Jeffrey McConney of the Trump Organization.

When asked about the compliance with the Generally Accepted Accounting Principles -- which Bender testified are the standards for accounting in the United States -- Bender repeatedly placed responsibility in the lap of the Trump organization.

"That was the Trump Organization's responsibility," Bender testified about GAAP compliance.

Bender acknowledged that he rarely questioned the inputs from the Trump Organization, and when he did, he largely dealt with McConney and executives other than Trump and his adult sons.

Repeatedly asked by the state attorney if Mazars would have issued the statements if they had known the Trump Organization included material misrepresentations in their data, Bender reiterated that Mazars would not have issued the statements.

When Judge Engoron remarked at the end of the trial day that the state would still need to present further evidence to prove that the 2011 statement was within the statute of limitations, Trump seized the statement as a partial victory.

"The last five minutes was outstanding, because the judge actually conceded that the statute of limitations … is in effect," Trump told reporters as he was leaving court.

Engoron, however, did not completely rule out the 2011 evidence during trial, instead appearing to remind counsel that they need to show the 2011 statement represents an ongoing concern that falls within the statute of limitations.

Testimony is scheduled to resume on Tuesday at 10 a.m. ET.