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
Ivanka Trump excused as lawyers debate statue of limitations
Ivanka Trump was removed from the courtroom for ten minutes while attorneys argued over whether the statute of limitations applied to the deals discussed during her testimony.
"These deals ... had requirements for updated financials year, after year, after year," Judge Arthur Engoron said. "To me, they are very much part of this case."
Donald Trump's lawyer argued that Ivanka Trump's conduct between 2011 and 2013 could not impact someone else recertifying the loans years later.
"It's theoretically impossible -- it's beyond implausible that some event that took place in 2016 would have changed the course of events in 2011, 2012, and 2013," Trump attorney Chris Kise said.
Judge Engoron appeared unconvinced by the arguments and allowed the testimony to continue.
"The ship has sailed," Engoron said.
Ivanka Trump says she wasn't 'privy to' father's financial statements
Asked about her involvement in her father's statements of financial condition that the judge has already determined fraudulently overvalued his real estate and inflated his net worth, Ivaka Trump said she had no knowledge of them.
"I would assume he had a personal financial statement," Ivanka Trump said. "Those weren't things that I was privy to."
Regarding a lease she had for a penthouse apartment in Trump Park Avenue that included an option to buy for $8.5 million, the New York attorney general's office said Trump's statement financial condition claimed that units in the building were selling for $20.8 million -- two and a half times as much.
Asked by state lawyer Louis Solomon whether she knew about that discrepancy, Ivanka Trump responded, "I wasn't involved in his statement of financial condition so I can't say what it took into account or didn't take into account."
Solomon pressed her about the documents, asking, "Did you know whether he had personal financial statements, Donald J. Trump?" Solomon asked.
"I'm not involved in his personal financial statements. I didn't know about his personal statements, per se, other than what you've showed me," Ivanka Trump responded.
"Did you have any role in preparing Donald J. Trump's statements of financial condition?"
"Not that I'm aware of," she replied.
Ivanka Trump sought lower net worth requirement for loan
In 2011, as the Trump Organization sought financing for its purchase and renovation of the Doral golf club in Miami, Deutsche Bank agreed to loan Trump the necessary funds, with one critical catch -- the deal would be secured by Donald Trump's net worth.
"Is DJT willing to do that? Also, the net worth covenants and DJT indebtedness limitations would seem to me to be a problem?" Trump Organization executive Jason Greenblatt wrote in an email to Ivanka Trump and CFO Allen Weisselberg that was entered into evidence. The arrangement required Trump to maintain a net worth of $3 billion.
Trump's 2011 statement of financial condition, one of the documents the New York attorney general alleges contained fraudulent valuations, listed his net worth as more than $4 billion. However Ivanka Trump asked Deutsche Bank to lower the amount of wealth her father would have to maintain, according to an email exchange entered into evidence.
"As I said before, I don't recall the net worth covenant," Ivanka Trump testified.
She proposed $2 billion, emails show. Deutsche Bank ultimately settled for $2.5 billion.
Courtroom reflects Ivanka Trump's calm demeanor
Ivanka Trump flashed a smile at Judge Engoron when he recommended to her that, when reviewing evidence, it would be easier for her to look at the big screen set up in the courtroom instead of the papers in her lap.
"Thank you," she said with a laugh.
Unlike her father, who roiled the judge and tangled with state attorneys during his testimony Monday, Ivanka Trump is reserved and soft spoken on the stand, at times speaking so quietly in answering questions that it's hard to hear her.
The entire courtroom appears to be following her tone, with Judge Engoron and attorneys from both side conducting themselves calmly even when objections are raised.
Cohen recounts his criminal history
Michael Cohen, hunched slightly on the witness stand, began his testimony by outlining the federal charges to which he pleaded guilty and served prison time -- including tax evasion and lying to Congress -- as Trump leaned back in his chair with his arms folded across his chest.
Once Trump's self-described bulldog, Cohen has not shared a room with Trump in five years, he said prior to his testimony.
As he recounted his criminal history, Cohen invoked the names of Stormy Daniels and Karen MacDougal, two women who in 2016 were paid to keep quiet about long-denied affairs with Trump. Defense attorney Chris Kise moved to strike the answer but the judge overruled the objection.
Colleen Faherty, an attorney with the state attorney general's office, asked Cohen if his crimes occurred while he was employed by Trump, to which Cohen responded "Yes" and affirmed his employer was "Donald J. Trump."