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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Trump attorney blasts motion to limit defense witnesses

Trump attorney Chris Kise grew visibly frustrated as today's proceedings moved on to arguments over the state's motion to preclude testimony from four of the defense's expert witnesses that the state argues are no longer relevant to the case.

After state attorney Andrew Amer argued in favor of the motion, Kise suggested he belongs in totalitarian Russia.

"I suggest Mr. Amer check the internet," Kise said. "Vladmir Putin has some openings. That is where he belongs."

Describing the comment as "completely uncalled for," Judge Engoron suggested that Kise apologize to Amer.

"I am not going to apologize," Kise said, though he promised to refrain from "further pejoratives."


Judge to take defense's motion to end case early 'under advisement'

Judge Arthur Engoron did not immediately rule on the defense's motion for a directed verdict that would end the trial early.

Instead, the judge simply said the arguments were being "taken under advisement."

Wrapping up his argument for a directed verdict, defense attorney Chris Kise channeled some of the rhetoric of his client, praising Donald Trump for helping the community and "reshaping the skyline of New York."

"What building has the attorney general built in this community?" Kise asked.


Trial is a 'documents case,' state lawyer says

State attorney Kevin Wallace, arguing against the defense's motion for a directed verdict to end the trial early, reiterated that the state's case relies on documents that they say incriminate Donald Trump and his adult sons.

"This is a documents case," Wallace said. "Each of the three defendants signed documents saying they were responsible for the fair presentation of the statements."

While the defendants all testified that they relied on accountants, Wallace said by way of analogy that it's like the defense saying that using an accountant absolves an individual of filing false tax returns.

"I am liable for that fraudulence," Wallace said. "I am not relieved of my responsibility because I handed off to an accountant."


Trump's sons caught in political crossfire, defense lawyer says

Clifford Robert, a lawyer for Eric Trump and Donald Trump Jr., argued that his clients were caught in a political "fight between the attorney general and their father" and should be cleared from the fraud case, as part of the defense's motion for a directed verdict to end the trial

"The evidence is clear that my clients had no real involvement in the preparation of the statement of financial condition," Robert said in reference to the allegedly fraudulent documents that are at the center of the New York attorney general's case.

To demonstrate his point, Robert highlighted testimony from six witnesses who attested that Eric Trump and Donald Trump Jr. were not involved in the preparation of their father's financial statements.


Bank wouldn't extend Trump credit to buy Buffalo Bills, exec says

Former president Donald Trump and his company bid $1 billion in 2014 in an attempt to purchase the Buffalo Bills football team.

The only problem was that Trump needed a bank to help finance his bid.

Former Deutsche Bank executive Nicholas Haigh testified that when Trump turned to his bank for help, bank executives declined, fearing it would increase their financial exposure to Trump.

"Deutsche Bank was not willing to increase its credit exposure to Donald Trump at that time," Haigh said.

But the bank was still willing to help Trump by sending a letter to support his bid, according to Haigh -- on the condition that Trump Organization controller Jeffrey McConney certify that the company was still in compliance with the covenants of the three outstanding loans the bank had given Trump.

McConney verified that Trump had over $300 million in liquid assets in 2014, and that it suffered no material decrease in the value of his illiquid assets, according to a document entered into evidence today.

With that verification, Deutsche Bank issued a letter that Trump had the "financial wherewithal" to fund his bid.

Trump's effort to purchase the Bills was ultimately unsuccessful.