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
'My father will send you' his statement, Ivanka Trump said in email
Poised and patient on the witness stand, Ivanka Trump described how her husband, Jared Kushner, introduced her to Deutsche Bank's private wealth management division, for which she later became the Trump Organization's liaison and worked to arrange financing for the firm's purchase of the Doral golf club in Miami.
She was shown an email in which she told a different potential lender that "my father will send you his most recent financial statement," a potential indication of the document's importance despite former President Trump's prior testimony that the banks didn't care about his financial statements when deciding whether to loan him money.
"They were just something that you would have," Trump said during his testimony Monday about the statements at the center of the case.
Ivanka Trump avoids courtroom photos
Unlike her father and brothers, who, when they testified, were photographed by news photographers at the defense counsel table alongside their lawyers before taking the stand, Ivanka Trump appears to have avoided her courtroom photo opportunity.
While her father and brothers are defendants in the case, Ivanka Trump is a third-party witness. No photographers were allowed in the courtroom this morning.
Ivanka Trump takes the stand
"The people call Ivanka Trump," state attorney Louis Solomon said.
"Who's she?" Judge Arthur Engoron responded jokingly.
After a few awkward minutes of waiting, Ivanka Trump entered the courtroom, walked toward the judge, and took her place in the courtroom's witness box. She did not address or make eye contact with Letitia James as she passed the New York attorney general.
"Do you solemnly swear or affirm that any testimony you give will be the truth, the whole truth and nothing but the truth?" a court officer asked her.
"I do," she responded with her right hand raised.
Ivanka Trump benefited from fraud, NY AG says
Speaking to reporters outside court this morning, New York Attorney General Letitia James said that today's testimony will demonstrate that Ivanka Trump personally benefited from the fraud that a judge has ruled her family committed.
"We uncovered the scheme and she benefited from it personally," James told reporters. "And Ms. Trump will do all that she can to try to separate herself from his corporation, but she is inextricably tied to the Trump Organization and to these properties that she helped secure financing for."
James has taken a seat in the front row of the courtroom's gallery, feet from her team of lawyers at the state's counsel table.
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.