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.
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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
'Tell me what the point is,' judge tells Trump attorney
Trump attorney Jesus Suarez is continuing his attempts to discredit former Trump accountant Donald Bender's testimony, but his arguments seem to be wearing thin for the judge.
After Suarez played a short clip from Bender's deposition, Judge Engoron -- who is deciding the case himself -- told the attorney, "There's no jury. Tell me what the point is."
During another portion of the cross-examination, Engoron told Suarez, "It's starting to sound like 'How many angels can dance on the head of a pin.'"
Cross-examination of ex-accountant continues
Continuing his cross-examination of Mazars USA accountant Donald Bender, who formerly worked on Trump's account, Trump attorney Jesus Suarez is adopting a less aggressive approach to his questioning than the theatrical approach he took yesterday.
When Justice Engoron appeared unreceptive to one part of Suarez's questioning, Trump, sitting with his attorneys, visibility groaned.
"It's easiest just to move on. Take a hint," Engoron said to Suarez about one of his attempts to discredit Bender.
Trump has been conferring with his attorney Alina Habba, taking notes, reviewing documents, and even ripping up papers while seated at the counsel table during the cross-examination of Bender.
Trump says his net worth is 'much higher' than statements say
Former President Trump, on his way into court for Day Three of his trial, said that his financial statements under-report his wealth, despite the judge in his case already ruling that his financial records were fraudulently inflated.
"My real net worth is much higher than that, much higher than the statement," Trump told reporters.
Decrying his trial as the "beginning of communism in our country," Trump continued his attacks on New York Attorney General Letitia James, but did not comment on Judge Arthur Engoron.
"This is just a continuation of the witch hunt that started the day I came down the escalator in Trump Tower," Trump said.
Trump back in court for Day Three
Former President Trump is back in court for Day Three of the trial, where defense counsel is expected to continue its cross examination of longtime Mazars accountant Donald Bender.
Once questioning of Bender concludes, the state says they plan to call Whitley Penn audit partner Camron Harris, who took over Trump's accounting after Mazars.
Justice Arthur Engoron may also address the narrow gag order he placed on Trump and the other defendants yesterday regarding making statements about the judge's staff, after the former president made what Engoron described as a "disparaging, untrue, and personally identifying post" involving Engoron's clerk.
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.