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
NY AG says Weisselberg plea should not affect case
New York Attorney General Letitia James said on Wednesday that the potential perjury-related guilty plea of former Trump Organization CFO Allen Weisselberg should have no bearing on the outcome the civil fraud case against former President Trump.
The attorney's general's office said it is unaware whether Weisselberg committed perjury while testifying in the case, but does not believe "this development should result in any delay of a final decision."
Judge Arthur Engoron had asked the parties to weigh in after it was publicly reported that Weisselberg was engaged in plea talks with the Manhattan district attorney's office to resolve a potential perjury charge.
"In sum, the fact that a defendant who lacks credibility and has already been to prison for falsifying business documents may have also perjured himself in this proceeding or the preceding investigation is hardly surprising," the AG's office said in a filing Wednesday, adding that "it should not delay a final decision and judgment imposing remedial measures in this law enforcement proceeding."
Weisselberg testified during the trial that he was only peripherally involved in certifying the size of Trump's Fifth Avenue apartment, but on the witness stand he was confronted with email suggesting otherwise.
Judge requests info about ex-CFO's potential perjury
Judge Arthur Engoron is requesting more information about potential perjury committed by defendant Allen Weisselberg, the former Trump Organization CFO, according to an email shared on the court's docket.
As ABC News has reported, Weisselberg is in plea talks with the Manhattan district attorney's office to resolve a potential perjury charge, according to sources familiar with the matter.
"As the presiding magistrate, the trier of fact, and the judge of credibility, I of course want to know whether Mr. Weisselberg is now changing his tune, and whether he is admitting he lied under oath in my courtroom at this trial," Engoron wrote in an email he sent to the parties on Monday.
Engoron requested both parties to send him a letter by Wednesday at 5 p.m. ET detailing "anything you know about this that would not violate any of your professional ethics or obligations."
"I would also appreciate knowing how you think I should address this matter, if at all, including the timing of the final decision," Engoron added.
The judge is still weighing his decision in the $370 million fraud case, which he originally indicated would come by the end of January.
Trump attorney criticizes independent monitor's report
Trump attorney Clifford Robert on Monday blasted a report issued last week by the former judge appointed to monitor the Trump Organization as an inaccurate depiction of the firm's finances intended to justify the continued oversight of the company.
Robert, in his letter Monday to Judge Arthur Engoron, said the report from independent monitor Barbara Jones "twists immaterial accounting items into a narrative favoring her continued appointment, and thereby the continued receipt of millions of dollars in excessive fees," arguing that her report represented an "unacceptable level of disingenuity."
"This is truly a joke," Trump attorney Chris Kise told ABC News in a statement. "Indeed, it is shocking that President Trump has been forced to pay millions for a Monitor to prove what he has said from the outset, namely, there is no financial reporting misconduct, no fraud and simply no basis for this abusive process to continue."
Trump Organization monitor flags financial misstatements
A report issued Friday by the former judge appointed to serve as the Trump Organization's independent monitor by Judge Arthur Engoron found that the company has been cooperative, implemented some changes, and issued necessary corrections to financial statements; however, the report also outlined multiple errors and misstatements observed by the monitor over her 14 months in the role.
The report, by independent monitor Barbara Jones, was issued at the request of Judge Engoron ahead of his expected ruling in Trump's civil fraud trial.
"It is important to note that the Trump Organization acknowledged the disclosure issues described after I brought them to its attention and has been open to recommendations to improve accuracy and transparency," Jones wrote in her report.
However, Jones wrote, "Absent steps to address the items above, my observations suggest misstatements and errors may continue to occur, which could result in incorrect or inaccurate reporting of financial information to third parties."
Defense presses state's expert on his analysis
Defense lawyer Jesus Suarez spent the first hour of his cross-examination working to cast doubt on expert Michiel McCarty's analysis, which found that Trump defrauded lenders out of $168 million in interest.
"Who created the universe of documents for you to review? It was the New York attorney general, right?" Suarez said before launching into a rapid-fire succession of questions regarding which lenders McCarty had spoken to in the course of his analysis.
"Did you ever interview anyone from Deutsche Bank?" Suarez asked.
"No," McCarty said.
"Did you ever interview anyone from Ladder Capital?" Suarez asked.
"No," McCarty repeated.
"Did you ever interview anyone from Mazars," Suarez asked.
"No," McCarty responded.
"Did you ever interview anyone from the Trump Organization?" Suarez asked.
"No," McCarty said again.