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
Eric Trump sought higher valuation of golf course, appraiser says
Eric Trump personally pushed for a higher valuation for 71 undeveloped residential units at the Trump National Golf Club in Westchester County outside New York City, a real estate executive testified.
David McArdle of the real estate firm Cushman & Wakefield said he was hired to appraise the future value of the duplex units to be built along the golf course's 18th hole fairway. McArdle said he personally worked with Trump Organization VP Eric Trump on the project in 2013.
"Eric loved this project. He thought it was very special," McArdle said.
When McArdle eyed a value between $40-$45 million, Eric Trump pushed for a higher value, McArdle said.
In an email that was entered into evidence, McArdle wrote to a colleague regarding Eric Trump: "He continues to call me. I am uncomfortable not replying, please call him."
McArdle testified that he wanted to be "respectful" to Eric Trump, who he hoped to work with on future projects; however, McArdle said he and Eric Trump continued to disagree about the value of the undeveloped units.
"Eric had certain ideas about value. They may have been more lofty than $45 million," McArdle testified.
McArdle said was firm on the $45 million valuation, adding that he did not want to put "Eric in a vulnerable position" because the appraisal could be "under a lot of scrutiny by the IRS or a court."
"We were sort of at the end, and anything beyond $45 million would have put people at risk," he said.
Lender says he partially relied on Trump's financial statement
When Ladder Capital executive Jack Weisselberg worked on a $160 million loan for the Trump Organization, he partially relied on Donald Trump's financial statements, according to his testimony this morning.
"The liquidity was really what we were paying attention to," said Jack Weisselberg in reference to the $302 million in cash and marketable assets Trump claimed in his 2014 statement of financial condition.
Pressed on direct examination, Jack Weisselberg declined to say he fully relied on the statement, which the New York attorney general alleges was fraudulently inflated.
"The net worth was one of many statements we were looking at in the underwriting process. It was a factor," Jack Weisselberg said.
He stepped down from the witness stand at the conclusion of questioning, though defense counsel reserved the right to call him back during their case.
Attorneys spar in sidebar meeting
Lawyers for former President Trump and New York AG Letitia James began court with a 25-minute private sidebar discussion with Judge Arthur Engoron.
Earlier the attorney general's office requested a forensic examination of Trump Organization data after identifying what they said were "likely omissions" of emails related to former CFO Allen Weisselberg.
"Excuse me, be more respectful," state attorney Colleen Faherty audibly said during one point of the heated sidebar.
"No," Trump attorney Chris Kise responded.
AG requests forensic review of Trump Organization data
New York Attorney General Letitia James is requesting a forensic review of Trump Organization electronic data after identifying a missing set of emails between former CFO Allen Weisselberg and a real estate executive.
"The failure to produce these later emails indicates a breakdown somewhere in the process of preserving, collecting, reviewing and producing documents," state attorney Kevin Wallace wrote in a letter to Judge Arthur Engoron.
The request follows an accusation from Forbes Magazine, reported in a story last week, that Weisselberg committed perjury on the stand, based on "old emails and notes, some of which the attorney general's office does not possess." Despite Weisselberg testifying that he "never focused on the apartment," the Forbes story said that he "played a key role in trying to convince Forbes over the course of several years that it was worth more than it really was."
The letter from the attorney general appears to focus on an email exchange related to the value of Trump's golf courses, rather than the value of his Trump Tower penthouse at the center of the Forbes accusations.
"We would therefore propose that the Monitor undertake a forensic examination of electronic data held by the Trump Organization for the very brief period August to September of 2016 to determine if all responsive information has been produced," Wallace wrote.
While Weisselberg's testimony concluded last Thursday, both parties have reserved the right to call the former Trump Organization CFO back to the stand.
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.