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.
Top headlines:
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
State concedes witnesses weren't asked if they regretted loans
The attorney general's office, in response to the defense's request for a directed verdict on the basis that the state failed to show that a bank or insurance company complained of fraud on the part of the Trump Organization, conceded that none of its witnesses were asked directly during the case whether they would have moved forward with a loan to the Trump Organization had they known about the fraudulent valuations alleged by the New York AG.
"Did any bank employee say, 'We would have done it different,' and if so who?" Judge Engoron asked the state attorneys.
"Mr. Haigh said that in his deposition," state attorney Kevin Wallace responded, referring to Nicholas Haigh of Deutsche Bank -- though Wallace acknowledged Haigh was not asked that during his direct examination.
Defense attorney Christopher Kise, in his argument for a directed verdict, said the state failed to present any evidence that a bank or insurance company would have dealt with the Trump Organization differently.
"There's no, even theoretical, argument that the approvals, rates or terms would have been different," Kise said. "Ultimately what matters is the decision-making process of the bank. If they would have approved it with this knowledge, then it's not material."
Kise also argued that the inclusion of the so-called "worthless" disclaimer in Trump's statements of financial condition -- which warned lenders that the valuations in the document required judgment and that they should do their own analysis -- prove that Trump had no intent to defraud.
That prompted Engoron to interject.
"You seem to be saying the fact that someone says 'Don't believe me' proves that they are not lying," Engoron said.
Defense moves for directed verdict to end trial
Former President Trump's defense team has moved for a directed verdict in the trial, arguing that New York Attorney General Letitia James has failed to meet the evidentiary standard necessary for the case to continue.
"The claims of the attorney general involve only successful and profitable loan transactions," defense attorney Christopher Kise argued. "There's no victim, there's no complainant, there's no injury."
Judge Arthur Engoron already determined in a pretrial partial summary judgment that Trump engaged in fraud by duping banks and insurance companies into giving him favorable loan terms based on statements of financial condition that overvalued his assets and inflated his net worth, leaving the trial to determine additional actions and what penalty, if any, the defendants should receive.
The defense is arguing that the state has failed to present evidence that a bank or insurance company complained of fraud or that Trump failed to meet his financial obligations.
"There's no intent to defraud, no defaults, no breach, no unjust profits and no victims," Kise said. "There's no record evidence that anything would have been different with the loan transactions or the insurance transactions."
Defense attorney Jesus Suarez asked Ivanka Trump during cross-examination yesterday what Deutsche Bank executives said after providing the financing for Trump's purchase and renovation of the Doral golf club in Miami.
"They were very happy," Ivanka Trump responded.
"If they believe they're being defrauded by someone, they're not doing business with them," Kise said of the banks.
James, Trump express differing views on case
After resting her case yesterday, New York Attorney General Letitia James expressed confidence in the strength of the case on social media.
"I am confident that we will prevail on the rest of our case because the facts don't lie," James said in a video statement.
James claimed that Ivanka Trump, who testified yesterday, used her father's fraudulent statements to secure vital deals for the Trump Organization, including a Washington D.C. property that yielded the company $139 million in profit. The New York AG is expected to request that Judge Engoron order the disgorgement of those profits by fining Trump more than $300 million.
Trump, in the meantime, continued to falsely allege that the case has been directed by President Joe Biden.
"Even that stupid trial going on in New York, which has been totally discredited -- everybody's been discredited," Trump told supporters at a campaign rally in Hialeah, Florida, last night.
"It comes out of the White House," Trump said without proof of the allegation.
Donald Trump's lawyers to move for directed verdict
A day after the New York attorney general rested her case, Donald Trump's lawyers are set to make a long-shot motion for a directed verdict in the trial.
In moving for a directed verdict, Trump's lawyers will ask Judge Arthur Engoron to end the case in favor of the defendants on the grounds that the New York attorney general failed to prove liability by a preponderance of the evidence.
The defense team requested a directed verdict earlier in the trial after they argued that Trump's former lawyer Michael Cohen perjured himself on the witness stand, but Judge Engoron resoundingly shot down the request.
"Absolutely denied," Engoron said when the defense made the request based on their claim that Cohen's evidence was unreliable.
"This case has evidence, credible or not, all over the place," said Engoron. "There's enough evidence to fill this courtroom."
If Engoron similarly denies today's motion, the defense team will begin presenting its case on Monday.
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.