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


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Jared Kushner would lend 'perspective' on deals, says Ivanka Trump

Ivanka Trump's husband Jared Kushner, who like Ivanka Trump served as a senior adviser in the Trump White House, would frequently weigh in on her family's real estate negotiations in the years before Donald Trump became president, Ivanka Trump testified.

State attorneys shared emails Ivanka Trump had sent her husband during negotiations with bankers over loan interest rates. Asked by state attorney Louis Solomon why she would share those records with Kushner, Trump responded, "It is not uncommon that I would ask my husband's perspective on something I was working on."

"My husband also was in real estate, and would have perspective for me," she said of Kushner, who, like Ivanka Trump, is not a defendant in the case. "So periodically we would discuss what we were working on."

Attorneys for Trump challenged the admissibility of emails belonging to Kushner, citing spousal privilege.

Justice Engoron overruled those objections because they communicated over work emails.

"If you use a work email that is subject to being seen by other people, you waive confidentiality," Engoron said.


New York AG moves to stop testimony from defense experts

Donald Trump's lawyers are scheduled to begin presenting the defense's case on Monday following the conclusion of the presentation of the New York attorney general's case -- but New York AG Letitia James is arguing that four of the defense's expert witnesses are no longer relevant.

In a filing made today, James argues that Judge Engoron's partial summary judgment decision and subsequent changes to the state's case have made make the testimony from the four experts irrelevant.

State lawyers plan to make an oral motion to preclude the expert testimony tomorrow, according to their filing.


'I don't recall' discussion of financial statements, Ivanka Trump says

State attorney Louis Solomon grew visibly frustrated with Ivanka Trump's limited recollections during an exchange about Donald Trump's Old Post Office building in Washington, D.C.

Solomon attempted to confront Ivanka Trump with a document that showed that the General Services Administration -- which ran the selection process for the renovation of the building -- raised concerns about Donald Trump's financial statements in 2011. New York Attorney General Letitia James, who says the statements contained fraudulent valuations, alleges that both Donald Trump and Ivanka Trump addressed those concerns during an in-person meeting with GSA officials.

"It was a general presentation. I don't recall with specificity any discussion of financial statements," Ivanka Trump said, prompting Solomon to throw his hands in the air.

"When I ask a question, she doesn't remember," an exasperated Solomon said. "The witness does have a recollection, your honor!"

"Would you like to clarify the situation?" Judge Engoron directly asked Ivanka Trump, who repeated the same description of the meeting.

"I recall one in-person meeting" about the "big picture" of the project, Ivanka Trump testified. She said recalled no discussion of "financial statements or anything granular like that."

Donald Trump's lawyers, meanwhile, have continued to object to Solomon asking questions about conduct from over a decade ago, which they say is akin to ancient history for a fast-moving real estate company.

"The GSA decision was made years before the statute of limitations," Donald Trump's lawyer Chris Kise argued, though Engoron overruled the objection.


'You are starting to sound like your client,' judge teases lawyer

Donald Trump is not in court today, but his lawyer is beginning to sound like the former president, according to a quip from Judge Arthur Engoron.

Describing the Trump Organization's renovation of the Old Post Office building in Washington, D.C., Trump's lawyer Chris Kise argued that the building was transformed from a "hulking relic" into a "world-class facility."

"You are starting to sound like your client," Engoron said, prompting some laughs from the gallery.


Bank and judge agreed on Trump's net worth, expert points out

Defense expert Robert Unell testified that both Judge Engoron and Deutsche Bank reached similar conclusions about Donald Trump's actual net worth -- but that Deutsche Bank officials weren't bothered by their determination.

In his partial summary judgment ruling before the trial, Engoron found that the New York attorney general provided "conclusive evidence" that Trump inflated his assets between $812 million and $2.2 billion.

"Even in the world of high finance, this Court cannot endorse a proposition that finds a misstatement of at least $812 million dollars to be 'immaterial,'" Engoron wrote.

Similarly, Deutsche Bank's valuation services group undercut Trump's net worth estimate by roughly than $2.4 billion when they evaluated his 2013 statement of financial condition. Despite that, the bank still loaned Trump millions for three of his properties.

"It would not be unusual," Unell said about the discrepancy identified by the bank.

Engoron cut him off before he could answer whether the discrepancy was within the "adjustment within the range that the court determined."

"I can do the math," Engoron said.