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 attorney accuses judge of 'double standard'
After a relatively calm day, tensions flared between Judge Engonon and Trump lawyer Chris Kise, after Kise accused the judge of applying a "double standard" to the defense team.
Defense attorney Jesus Suarez attempted to question Ivanka Trump about a document from the General Services Administration, prompting an objection from state attorney Louis Solomon, who argued that Suarez lacked the foundation to ask about the document.
"I've objected hundreds of times now," an exasperated Kise said, arguing that the state attorneys used documents with less foundation provided.
"I continually object to your constant insinuation that I have some sort of double standard. It's just not true," Engoron replied forcefully.
Ivanka Trump, sitting feet away from Engoron, appeared to watch the exchange in disbelief.
"I wish it were different. I respect your honor's position. I just see these ruling ... frequently going in a different direction," Kise said.
"Their objections have been of greater validity than yours," Engoron shot back.
Ivanka Trump says father had 'deep and nostalgic love' of golf course
Following a sometimes-tense direct examination by state attorney Louis Solomon, Ivanka Trump is speaking more comfortably, showing more emotion, and offering more lengthy answers to questions during cross examination.
Asked about why the Trump Organization worked with Deutsche Bank to secure financing for its purchase of the Doral golf club in Miami, she spoke wistfully about the property.
"My father had a deep and nostalgic love for that particular property," she testified.
"He told me he took my mother there," she said with a smile, recalling her father bringing her there when she was a child.
"They were really impressed by what we had done over the course of several years in terms of upgrading and refurbishing the property," Ivanka Trump said.
Banks sought to promote ties to Trump Organization, says defense
Deutsche Bank sought to promote its ties to the Trump Organization in marketing materials a decade ago, according to emails shown in court during Ivanka Trump's ongoing cross-examination.
Trump attorney Jesus Suarez showed the emails to demonstrate a key pillar of their defense: that the state's allegations were victimless, and in fact, rather than getting bilked in loan agreements, bankers appreciated -- and even competed for -- the Trump Organization's business.
"I was constantly told by Rosemary and her team how much they appreciated our relationship and ... seeking to grow it," Ivanka Trump testified regarding Deutsche Bank executive Rosemary Vrablic.
Deutsche Bank asked Ivanka Trump to appear in promotional videos for their firm, the emails suggested.
Ivanka Trump says she received $4 million from sale of building
Ivanka Trump acknowledged that she personally received more than $4 million from the Trump Organization's sale of the Old Post Office building in Washington, D.C., last year.
In total, she received $4,013,204 in profit after the building was sold in 2022, according to a document shown in court.
"That is consistent with my recollection, yes," Ivanka Trump said.
New York Attorney General Letitia James had pledged to show that Ivanka Trump personally profited from the fraud the AG says is at the center of the case.
Ivanka Trump has now completed her direct examination and is being cross-examined by defense attorney Jesus Suarez.
Under cross-examination, she repeated that she was not involved with reviewing, approving, or providing values for her father's financial statements, which state attorneys say contained fraudulent valuations.
Controller denies keeping documents from outside accountants
Longtime Trump Organization controller Jeffrey McConney, a defendant in the attorney general's case, denied withholding any documents from the company's outside accountants -- appearing to contradict testimony from Mazars USA accountant Donald Bender.
"We provided him everything he needed," McConney said, adding that Bender could request any document he wanted from the Trump Organization.
McConney, testifying for the defense, added that Bender also could directly communicate with individuals in the Trump Organization to directly ask questions during the process of organizing Trump's financial statements that are at the center of the case.
"Bender would come in and talk to anyone he wanted," McConney said.
When Bender testified last month during the state's case, he said that he directly asked McConney if the company had more appraisals, to which McConney responded, "That's all we have."
"They were not giving us all the documents that we needed, potentially, to compile the compilation," Bender testified.
Asked about the allegation on the witness stand, McConney denied he withheld anything from Bender.
"Did you ever hide anything from Donald Bender?" defense attorney Jesus Suarez asked.
"No," McConney responded.