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
Appraisals didn't necessary equate to value, controller says
Longtime Trump Organization controller Jeffrey McConney, in response to the New York attorney general's allegations that the Trump Organization ignored multiple appraisals that would have significantly decreased the value of their assets, testified that some appraisals had specific purposes outside of valuing properties.
"They are done for a specific purpose," McConney said, acknowledging that some appraisals valued overall properties while others were specifically ordered for limited tax purposes.
"Just because an appraisal was done, does not mean it reflects the value of that property," McConney said, explaining that appraisals related to conservation easements were "not done to value the property."
McConney appeared to acknowledge that the Trump Organization choose to ignore a 2015 appraisal that valued its 40 Wall Street property at $540 million, while Trump valued the property in his financial statement at $735 million.
"We didn't think this valuation property reflected what the building was worth," McConney said.
Asked if the Trump Organization provided the appraisal to their outside accountant Donald Bender of Mazars USA, McConney responded, "If he wanted them, he could have had them."
Former controller scheduled to conclude testimony
Former Trump Organization controller and co-defendant Jeffrey McConney is set to return to the witness stand to conclude his testimony this morning.
When he returned to the stand as a witness for the defense yesterday, he testified that he relied on the firm's accountants at Mazars USA to put together the statements of financial condition that are at the center of the case, continuing what appears to be the defense's strategy of placing responsibility on outside accountants.
"Whatever he asked for, we would do," McConney said of longtime Mazars accountant Donald Bender.
McConney is the only witness scheduled to testify before the court takes an extended Thanksgiving break. Once his testimony concludes, the court is set to adjourn until it resumes on Monday following the holiday.
McConney says he corrected inflated value of Ivanka's apartment
The Trump Organization's longtime controller testified that he overvalued Ivanka Trump's apartment in her father's statement of financial condition before correcting the mistake after it was flagged.
New York Attorney General Letitia James alleges that a penthouse apartment rented by Ivanka Trump was valued in Donald Trump's financial statement at $45 million in 2014 and 2015, despite the apartment's rental agreement including an option to purchase the apartment for $14 million.
From 2016 onward, the value of the penthouse in Trump's statements dropped back down the actual buyout price of $14 million, "per rental agreement."
Asked about the change during his testimony today, McConney acknowledged the correction, claiming he did not know about the provision in the rental agreement.
McConney said that once outside accountant Donald Bender of Mazars USA flagged the issue, he promptly made the change in Trump's financial statement.
McConney concluded his testimony for the day and is set to return to the witness stand Tuesday morning.
Controller testifies he relied on outside accountants
With an overwhelming number of entities to track in addition to numerous other responsibilities, the Trump Organization's longtime controller Jeffrey McConney said he relied on outside accountants to put together Trump's statements of financial condition.
While the statement took up a portion of his time between July and October each year, McConney testified that he otherwise spent "very little time" on the financial statements that underpin the attorney general's case.
The descriptions of each entity in the statements, and the disclaimers, largely remained the same year after year, according to McConney.
"A lot of this was Gerald Rosenblum's writing," he said about the section describing Trump Tower, referring to a former outside accountant.
"Whose words are those?" defense attorney Jesus Suarez said about a disclaimer that said that the value of "Donald J. Trump's worldwide reputation" was not considered in the statement.
"Mazars," McConney responded.
He added that Trump would make any change that Mazars recommended and largely followed the lead of then-Mazars accountant Donald Bender when modifying the statement.
"If [Bender] had items that he needed on the statement to change, we made the change," McConney said.
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.