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 firm 'in compliance' but under 'enhanced monitoring'
Donald Trump agreed to "enhanced monitoring" of the Trump Organization's finances after the company's independent monitor flagged cash transfers of roughly $40 million over the last 10 months.
Former judge Barbara Jones, the independent monitor requested by the New York attorney general in the case, wrote in a letter to Judge Arthur Engoron that she had identified three separate cash transfers of more than $5 million, totaling approximately $40 million. Jones said the transfers included $29 million in tax payments and roughly $10 million for insurance premiums.
"We have discussed with Defendants why these transactions were not previously disclosed, and I have now clarified (and Defendants have agreed) that all transfers of assets out of the Trust exceeding $5 million must be reported," Jones wrote.
Jones also requested information related to an intercompany loan and flagged the delayed disclosure of tax returns for six of Trump's entities, which defendants acknowledged as their mistake.
"Defendants continue to cooperate with me and are generally in compliance with the Court's orders, and have committed to ensure that all required information, including tax information and cash transfers, are promptly disclosed to the Monitor," Jones wrote.
Addressing a report she issued in August about incomplete financial disclosures by the Trump Organization, Jones added that the Trump Organization took additional steps to remedy and disclose the issue.
"By taking these steps I believe Defendants have resolved the issues identified in the August Report, subject to ongoing monitoring," Jones wrote.
Trump VP walks back testimony suggesting conspiracy
Trump Organization VP Patrick Birney, testifying for the defense, walked back testimony from earlier in the trial about receiving instructions to inflate the value of Trump's assets from the company's former CFO.
"Did Allen Weisselberg ever tell you that Mr. Trump wanted his net worth on the statement of financial condition to go up?" state attorney Eric Haren asked Birney during the state's case.
"Yes," Birney responded, describing that he received the instruction in Weisselberg's office between 2017 and 2019.
During an argument for a directed verdict earlier this month, Donald Trump's attorney Chris Kise cited that as some of the only testimony to support the New York attorney general's allegation that members of the Trump Organization conspired to inflate the former president's net worth.
Returning to the witness stand for the defense's case, Birney suggested that any changes to Trump's financial statement were based on material changes to assets.
"Were you ever directed to increase a number without there being an underlying basis to increase that valuation?" defense attorney Jennifer Hernandez asked.
"No," Birney said.
Judge Arthur Engoron adjourned court for the day after Birney completed his testimony.
"OK, class dismissed," Engoron quipped.
Deutsche Bank expected Trump to value assets fairly, banker says
Former Deutsche Bank managing director Rosemary Vrablic testified on cross-examination by state attorneys that Donald Trump, Ivanka Trump, and Donald Trump Jr. secured private financing using recourse -- meaning they were personally liable for the loan.
"Sorry about the recourse issue -- a dirty word, I know -- but it is a requirement in private banking," Vrablic wrote in a 2011 introductory email to Donald Trump Jr.
Vrablic confirmed that each of the Trumps she worked with -- Donald, Ivanka, and Donald Trump Jr. -- used a personal guaranty to secure better financing terms.
"It gives the flexibility to be creative on some solutions because the person is standing behind it," Vrablic testified.
State attorney Kevin Wallace appeared to focus on the personal guaranty during the cross-examination, with the discussion bringing the focus back on the representation of the value of Trump's assets.
While Vrablic confirmed that she never personally reviewed Donald Trump's statement of financial condition, she said the bank still expected it was accurate.
"You would have had an expectation that a borrower like Mr. Trump would present their financial information fairly?" Wallace asked.
"Yes," Vrablic replied.
Deutsche Bank made money from Trump, defense emphasizes
Defense attorney Jesus Suarez, in his direct examination of Deutsche Bank managing director Rosemary Vrablic, emphasized that Deutsche Bank was eager for Trump's business and made money from the loans they offered him.
"Your family is in the top 10 revenue generating names of Asset and Wealth Management now and he is thrilled with how it's grown," Vrablic wrote in a 2014 email to Ivanka Trump, referring to Vrablic's boss at Deutsche Bank.
That same year, Vrablic estimated that the bank made more than $6.8 million in fees from the Trump Organization.
Vrablic described her role as an intermediary between lenders at the bank and Ivanka Trump, both hunting for deals within the bank and courting the Trumps for increased business.
"Existing customers are the best source of additional customers," Vrablic said about the importance of Trump's business, given his connections in real estate and his wealthy family.
Cohen says he's 'looking forward' to seeing Trump
Exiting his New York City apartment this morning, Michael Cohen told reporters he was "looking forward" to seeing Trump in court.
"It's been five years since we've been in the same room," Cohen said.
Cohen preemptively defended the credibility of his testimony and reiterated that he previously perjured himself "concert with and for the benefit of Donald J. Trump."
"My credibility should not be in question," Cohen said.
-ABC News' Eric Avram contributed to this report.