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
Trump, ignoring judge's warning, tells court he's an 'innocent man'
Before Judge Arthur Engoron could even get Trump to agree to the terms the judge had laid down for the delivery of Trump's closing statement, the former president launched into a five-minute address while seated at the defense table.
It began when defense attorney Christopher Kise asked the judge to reconsider his decision and allow Trump to speak, and Engoron asked Trump if he would stay within the bounds of his closing argument.
Trump pressed immediately on.
"Well I think, your honor, this case goes outside the facts," Trump said. "The financial statements were perfect. The banks got all their money back. They were as happy as can be."
Ignoring the judge's prohibition regarding delving into politics, Trump said, "This is a political witch hunt that should be set aside. We should receive damages for what we've gone through."
He also attacked New York Attorney General Letitia James.
"I'm an innocent man. I've been persecuted by someone running for office," Trump said. "This statute is vicious. It doesn't give me a jury. It takes away my rights."
He said the tripling of the square footage of his Trump Tower penthouse on his statement of financial condition was a mistake -- "an honest mistake" that was corrected.
Trump declared, "This is a fraud on me. What's happened here, sir, is a fraud on me."
Lawyer says no evidence implicates Trump's sons
Defense attorney Clifford Robert rounded out the defense summations by repeating claims that no evidence implicates his clients Eric Trump and Donald Trump Jr.
"There is not one witness who says that Eric Trump or Donald Trump Jr. had nothing more than peripheral involvement with the statement of financial condition" that's at the heart of the case, Robert said. He added that even former Trump lawyer Michael Cohen -- who he described as "the biggest liar on the face of the planet" -- failed to implicate his clients.
Delivering his summation from the far side of the courtroom as if he was addressing the courtroom's jury box, Robert frequently pointed to the courtroom's gallery where Eric Trump sat in the first row.
"They have their futures ahead of them," Robert implored Judge Engoron, warning that the case could result in a professional "death penalty" for Trump's two eldest sons and could harm their families.
Like his co-counsel, Robert criticized the case as politically motivated.
"This is a press release wrapped up in a lawsuit," he quipped.
Robert concluded his statement by requesting that all the causes of action alleged against Trump's sons be dismissed.
Trump lawyer calls case 'political agenda,' drawing rebuke
The second of three defense attorneys to present closing arguments, Alina Habba, began her statement with accusations of political motives.
Habba, who also serves as Trump's legal spokesperson, said, "This case started before Ms. James took office," referring to New York Attorney General Letitia James. "You are now being dragged through a political agenda."
The accusation prompted an interjection from Judge Engoron, who earlier in the week instructed Trump's attorneys via email that Trump -- should be participate in the closings -- would have to abide by the same rules lawyers must adhere to when delivering a closing statement, namely "commentary on the relevant, material facts that are in evidence, and application of the relevant law to those facts."
"You saw the email exchange," Engoron reminded Habba. "So facts, law."
Habba pivoted, declaring that Trump "is worth billions" and arguing that there could be no fraud. She said the Trump Organization and its executives relied on the company's outside accounting firm, Mazars USA, to flag any impropriety with asset valuations and how they were calculated.
"We have wasted years, you and me, your honor, and for what?" Habba said.
Trump attorney warns ruling 'impacts every corporation in NY'
Trump attorney Chris Kise wrapped up his closing statement by warning that the upcoming ruling in Donald Trump's civil fraud trial "impacts every corporation in New York."
"This decision is not just about President Trump," Kise said.
"What you do, judge, impacts every corporation in New York. The commercial marketplace would cease to exist as we know it," Kise warned.
Kise repeated his claim that the alleged fraud lacks any witnesses, allegations of fraud, and lost money; instead, the case is simply the "weaponization" of New York Executive Law 63(12), he argued.
"You cannot allow the attorney general to pursue a victimless fraud and enforce the corporate death penalty," Kise said.
AG requests forensic review of Trump Organization data
New York Attorney General Letitia James is requesting a forensic review of Trump Organization electronic data after identifying a missing set of emails between former CFO Allen Weisselberg and a real estate executive.
"The failure to produce these later emails indicates a breakdown somewhere in the process of preserving, collecting, reviewing and producing documents," state attorney Kevin Wallace wrote in a letter to Judge Arthur Engoron.
The request follows an accusation from Forbes Magazine, reported in a story last week, that Weisselberg committed perjury on the stand, based on "old emails and notes, some of which the attorney general's office does not possess." Despite Weisselberg testifying that he "never focused on the apartment," the Forbes story said that he "played a key role in trying to convince Forbes over the course of several years that it was worth more than it really was."
The letter from the attorney general appears to focus on an email exchange related to the value of Trump's golf courses, rather than the value of his Trump Tower penthouse at the center of the Forbes accusations.
"We would therefore propose that the Monitor undertake a forensic examination of electronic data held by the Trump Organization for the very brief period August to September of 2016 to determine if all responsive information has been produced," Wallace wrote.
While Weisselberg's testimony concluded last Thursday, both parties have reserved the right to call the former Trump Organization CFO back to the stand.