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
Defense's case running ahead of schedule
The defense’s case will likely conclude one week ahead of schedule, according to defense attorney Clifford Robert.
Based on the remaining witnesses, the defense team is now planning to rest its case by Dec. 8.
Once the defense rests its case, the New York attorney general has an opportunity to present a rebuttal case, followed by closing arguments from both sides.
James says Trump's expert witnesses are 'friends and golf buddies'
Week 8 of Donald Trump's fraud trial resumes this morning with the defense's sixth expert witnesses.
Apart from the testimony of Donald Trump Jr., the defense's case last week largely relied on multiple experts who supported the claim that asset valuation is more of an art than a science.
Similar to the state's lone expert witness, who was paid $350,000 for his testimony, Trump's expert witnesses during the first week of the defense's case were paid a hefty fee for testifying -- while others testified as a professional courtesy to Trump. Expert witness Gary Giulietti acknowledged his personal friendship with the former president, while Steven Witkoff said he had donated over $2 million to Trump's presidential campaign.
New York Attorney General Letitia James noted those connections in a social media post.
"Several of these experts are longtime friends and golf buddies of Donald Trump. One had donated millions of dollars to Donald Trump's campaign and his son even got married at Mar-a-Lago," she said.
With no gag order, Trump continues to assail judge, clerk
With his limited gag order temporarily lifted on Thursday, Trump is continuing to rail against his civil fraud trial on social media, calling for the prosecution of New York Attorney General Letitia James, Judge Arthur Engoron, and Engoron's law clerk.
Describing the case as a "horribly handled persecution of a political opponent," Trump alleged that Engoron himself committed fraud by undervaluing his assets in his pretrial ruling, and that his clerk and James were complicit in the case.
"The World is watching this illegal Witch Hunt," Trump wrote.
Describing Engoron's clerk as a "co-judge" and "highly partisan," Trump's posts over the weekend were the second and third time the former president took aim at the clerk since an appeals court temporarily lifted the gag order preventing him from attacking Engoron's staff. In both posts, Trump explicitly mentioned the clerk by name.
Engoron on Friday denied Trump's request for a mistrial, which alleged bias on the part of the the judge, writing in his ruling, "As I have made clear over the course of this trial, my rulings are mine, and mine alone. There is absolutely no 'co-judging' at play."
Judge denies Trump's request for mistrial
Judge Arthur Engoron denied Donald Trump's request for a mistrial, describing the defendants' arguments as "nonsensical," "disingenuous," and "utterly without merit."
Engoron rejected the motion without hearing any arguments from the New York Attorney General, who earlier this week requested that an extended briefing be scheduled.
"I cannot sign a proposed order to show cause that is utterly without merit, and upon which subsequent briefing would therefore be futile," Engoron wrote in his ruling.
Across a four-page order, Engoron sharply disagreed with the allegations from the defendants that he was engaging in "co-judging" with his law clerk.
"As I have made clear over the course of this trial, my rulings are mine, and mine alone. There is absolutely no 'co-judging' at play," Engoron said.
Addressing his principal law clerk's political donations, which the judge said she has largely made in order to purchase tickets to functions while pursuing elected judicial office, Engoron called out the defendants for failing to acknowledge the "applicable unambiguous ethical guidelines" that permit such donations. He similarly dismissed the idea that his clerk attending events sponsored by political organizations implies that she supports any position taken by those groups.
"Such arguments are nonsensical; and in any event, they are a red herring, as my Principal Law Clerk does not make rulings or issue orders -- I do," Engoron said in his ruling.
Court was subsequently adjourned for the day.
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.