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.


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


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Deutsche Bank made money from Trump, defense emphasizes

Defense attorney Jesus Suarez, in his direct examination of Deutsche Bank managing director Rosemary Vrablic, emphasized that Deutsche Bank was eager for Trump's business and made money from the loans they offered him.

"Your family is in the top 10 revenue generating names of Asset and Wealth Management now and he is thrilled with how it's grown," Vrablic wrote in a 2014 email to Ivanka Trump, referring to Vrablic's boss at Deutsche Bank.

That same year, Vrablic estimated that the bank made more than $6.8 million in fees from the Trump Organization.

Vrablic described her role as an intermediary between lenders at the bank and Ivanka Trump, both hunting for deals within the bank and courting the Trumps for increased business.

"Existing customers are the best source of additional customers," Vrablic said about the importance of Trump's business, given his connections in real estate and his wealthy family.


Bank was concerned DC hotel deal could publicize loan terms

Deutsche Bank managing director Rosemary Vrablic expressed concern about the public nature of Donald Trump's 2012 acquisition of the Old Post Office building in Washington, D.C., fearing the deal might publicize the favorable loan terms offered by the bank, according to evidence presented at trial.

"Will our terms and conditions with you be made public? Not a credit issue, but we want to be prepared if 'other clients' see it and ask for the same deal," Vrablic wrote in a 2013 email shown at trial.

The Trump Organization won the bidding process with the federal government in 2012 for the property, and Deutsche Bank loaned the firm the money for the renovation of the decrepit building.

"We won! We're very very excited!" Ivanka Trump wrote in a 2012 email to Vrablic.

Vrablic, concerned about the loan terms being publicized, said, "We would not talk about that," regarding the importance of keeping the terms private from other high-net-worth clients.

Vrablic could not recall how the loan term details were protected, but she confirmed that Deutsche Bank made $3.3 million from their loan to the Trump Organization related to the property.


Scrutiny over Trump's presidency prompted bank to halt relationship

Deutsche Bank decided to stop doing new business with Donald Trump due to the "increased exposure" and "scrutiny" related to his being elected president, according to testimony from Deutsche Bank managing director Rosemary Vrablic.

"It was an unprecedented situation to have a customer who was going to become president of the United States," Vrablic said.

By the time Trump was elected, the bank had made three profitable loans to Trump, making a projected $6.8 million in revenue from Trump in 2014. Vrablic confirmed that by July 2015, Trump had $31 million in cash deposits with the bank, and his associated entities stored $86 million in cash deposits.

However, the scrutiny of Trump's presidency prompted the bank to decide not to increase its exposure, including declining to offer Trump a loan for his golf course in Turnberry, Scotland.

"He was president of the United States -- going to become president of the United States -- and the bank's position was they did not want to increase its exposure at that time," Vrablic testified.


Deutsche Bank courted Trump for more business, referrals

Deutsche Bank executives courted Donald Trump to attract more business and referrals, viewing the former president as an opportunity to sell services to his family members and other high-net-worth individuals, according to the testimony of former Deutsche Bank managing director Rosemary Vrablic.

"Given the circles this family travels in, we expect to be introduced to the wealthiest people on the planet," Vrablic wrote to colleagues while courting Trump in the early 2010s, according to materials entered into evidence.

Recruiting Trump stemmed from a 2007 effort in the bank to develop a broader commercial real estate financing division for their high-net-worth individuals.

"He would have fit the category of the entrepreneur and investor with a successful track record," Vrablic testified on the stand regarding Trump's profile.

After being introduced to Donald Trump Jr. through Ivanka Trump's now-husband Jared Kushner, Vrablic began pursuing Donald Trump's business.

"We are whale hunting ... Haven't seen him yet. Also maybe Dad will convert like Ivanka did," Vrablic wrote in a 2011 email to a colleague.

"It is a term used when there is a very high-net-worth individual who is a prospect," Vrablic said in explaining why she referred to Trump as a "whale."

Once Trump was on board, leadership from the bank personally courted Trump to do more business with the bank and to connect them to other potential clients. The former CEO of the bank personally met with Trump with the express goal of gaining more deposits from Trump and leveraging Trump's relationships.

CEO Anshu Jain "thought that if Mr. Trump wanted to, there could be additional leverage provided among his world," Vrablic testified.

The effort appeared to work, as the bank made over $3 million in revenue from Trump in 2013, up from only $13,000 in 2011.


Defense expert says Mar-a-Lago was worth $1.2 billion

Donald Trump's Mar-a-Lago Club was worth more than $1.2 billion in 2021 -- roughly double the value listed in Trump's statement of financial condition -- according to defense expert Lawrence Moens.

Describing Mar-a-Lago as a castle nestled on 17.6 acres of waterfront property, Moens said he determined the value by considering nearby properties and adding the total value of the club's 500 memberships, which in 2021 cost $350,000 each.

Between 2011 and 2021, Moens' analysis found that Trump undervalued Mar-a-Lago in his statements of financial condition -- but his analysis appeared to be based on Trump being able to sell the property to an individual to use it as a private residence, which the New York attorney general says Trump is prohibited from doing based on a 2002 deed he signed that would "forever extinguish their right to develop or use the Property for any purpose other than club use."

Judge Engoron only qualified Moens as an expert on the value of residential real estate.

Moens spoke with confidence about his ability to value real estate in Palm Beach, saying that he has sold billions of dollars of real estate since his first sale as a broker in 1982. Asked if any broker has sold more Palm Beach real estate than he has, Moens replied, "They don't exist."

"I am on the front lines everyday of selling properties, and I have a pretty good handle of what is going on currently in the market," Moens said. He later added, "My numbers are usually right."

Moens also put together a seven-minute promotional video about Mar-a-Lago, which was played during his testimony. Set to relaxing music, the video included high-resolution drone shots and dramatic panning shots of the property's amenities. After the video played, Moens highlighted details such as hand-carved stones, gold decorations that cost millions to construct, and other details that required years of work from tradesmen.

"I invited the attorney general's office to come see it anytime. The offer still stands," Moens said. "I will make sure he is not there when you come," he said of Trump.

Engoron appeared attentive to Moen's testimony -- but once Moens left the courtroom, he indicated that he wasn't as concerned about Mar-a-Lago's specific value as he was about whether it was misrepresented.

"I see this case about the documents -- whether the defendants used false documents when transacting business," Engoron said. "I am not trying to figure out what the value is ... I don't necessarily consider it relevant."