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
Banker says Trump declined to share financials in Bills' bid
After claiming a net worth of $8 billion, Donald Trump declined to share his financial statements with bankers related to his $1 billion bid to purchase the Buffalo Bills football team in 2014, according to documents presented at trial and testimony from Morgan Stanley executive K. Don Cornwell.
Of the 86 parties contacted to potentially bid on the Bills, Trump was one of six parties to make a final bid, according to a Morgan Stanley document shown at trial.
However, when Morgan Stanley attempted a close review of Trump's bid, Trump declined to provide his financial statements.
"We feel it is premature to sign the consent release forms until such time as we know that Mr. Trump is the final bidder," then-Trump attorney Michael Cohen said in a 2014 email shown at trial.
During a management presentation with Bills' leadership, Trump instead handed out a Forbes magazine list to support his bid, according to Cornwell.
"He gave us handouts of the Forbes list of the top-paid entertainers," Cornwell said.
Trump eventually lost his bid to purchase the football team to billionaire Terry Pegula, who outbid Trump by $400 million.
During cross-examination, Cornwell acknowledged that a lawsuit Trump previously brought against the NFL, as well as his affiliation with casinos, also limited the likelihood of his success.
"You thought that President Trump had little chance of being approved by the NFL?" defense attorney Ivan Feris asked.
"Yes," Cornwell replied.
Trump's lawyers have argued that his bid to purchase the Bills -- which has featured prominently in the testimony of other witnesses -- is irrelevant to the conduct alleged in the attorney general's lawsuit.
"It is the defense position that none of this relates to a cause of action in this case," Feris said.
'Trick or Treason,' say demonstrators outside courthouse
Attorneys involved in the case were greeted outside the courthouse this morning by nearly a dozen demonstrators wearing Halloween masks and carrying signs that read "Trick or Treason" and "Trump is a Horror Show."
"We came out because it's Halloween, and our theme is 'Trick or Treason,'" said organizer Jamie Baur of the group Rise and Resist. "We come out on different days, both to challenge [Trump's] lawyers and make sure they know that we hold them accountable for trying to defend the indefensible."
The group has demonstrated outside Trump's civil trial half a dozen times, in addition to holding weekly protests outside Fox News, according to Baur.
"They basically defrauded our state of lots and lots of money and [I am] hoping to see the judge get justice for their state taxpayers and residents," demonstrator Rick Weisfeld said.
Judge says fining Trump for illegal profits is 'an available remedy'
Judge Engoron, in an exchange with defense attorneys regarding the state's expert witness, said that levying fines against Trump -- one of the central issues being decided at this trial -- is "clearly an available remedy" despite the defense's contention otherwise.
Engoron already ruled in a partial summary judgment that Trump had submitted "fraudulent valuations" for his assets, leaving the trial to determine additional actions and what penalty, if any, the defendants should receive.
Engoron's observation came during the defense's effort to preclude testimony from the attorney general's expert witness. In denying their effort, the judge also shot down the defense's argument that disgorgement -- fining Trump for illegal profits -- is off the table.
"For reasons this court has explained ad nauseam, that view is simply incorrect," Engoron said. "Disgorgement is a clearly available remedy."
Trump attorney Chris Kise countered that the state has failed to prove that banks would have done anything differently had they known Trump's statements were fraudulent. Kise specifically cited the testimony of Deutsche Bank executive Nicholas Haigh, who testified that loaning money to Trump was a "good credit decision."
"Several witnesses have testified that they would have acted differently had they known the statements of financial condition were fraudulent," Engoron responded.
"I think, to a certain extent, the defendants are whistling past the graveyard here," the judge added.
Morgan Stanley exec scheduled to testify this morning
Day 20 of the trial is scheduled to begin with testimony from K. Don Cornwell, who worked at investment bank Morgan Stanley in 2014 when Donald Trump bid for the Buffalo Bills football team.
He is scheduled to be followed on the witness stand by former Trump Organization executive David Orowitz.
The state's expert witness, Michiel McCarty, is then scheduled to testify later today about the financial implications of Trump's inflated assets -- context that is expected to guide the judge's determination about the size of fine Trump faces, if any.
Members of the Trump family are scheduled to begin testifying tomorrow, starting with Donald Trump Jr.
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.