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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Trump airs complaints against judge, New York AG

After a cordial question-and-answer interlude seemed to cool down the temperature in courtroom, the former president has grown increasingly animated as he levels complaints against the judge and the New York attorney general, whom he called "a political hack."

When state attorney Kevin Wallace asked Trump if he disagreed with the attorney general's assessment of the value of some of the Trump Organization's properties, Trump fired back.

"I think it's fraudulent," Trump said. "The fraud is on the court, not on me."

Looking at Wallace but motioning toward Judge Engoron, Trump said of the judge, "You ruled against me before you knew anything about me ... he called me a fraud and he didn't know anything about me."

Referring to New York Attorney General Letitia James, Trump said: "It's a political witch hunt and I think she should be ashamed of herself."

Wallace has largely ignored Trump's asides, instead moving on to the next question. After a particularly agitated exclamation, Wallace asked Trump, "You done?"

"Yes," Trump replied.


Real estate valuations aren't a science, defense says

Despite addressing two overvaluations on his statement of financial condition, Trump has repeatedly tried to stymie the state attorney's yes-or-no line of questioning regarding his financial statement, underscoring his legal team's defense that real estate valuations are an art, not a science.

Earlier, in response to a question about the compilation of his financial records in 2021, Trump invoke his work in the White House to demonstrate that he was too preoccupied with the nation's business to engage in his own.

"I was so busy in the White House," Trump said. "My threshold was China, Russia and keeping our country safe."

"Just for the record," state attorney Kevin Wallace replied, "you weren't president in 2021?"

"No, I wasn't," Trump acknowledged.


Trump acknowledges adjusting 2 overvaluations

Donald Trump acknowledged during direct examination that he overvalued at least two properties in his statements of financial condition, though he broadly represented that the statements underestimated his total net worth.

"Did you ever think that the values were off in your statement of financial condition?" state attorney Kevin Wallace asked about the document at the center of the case, which the New York attorney general has alleged contained fraudulent valuations.

"Yes, on occasion. Both high and low," Trump said, appearing to surprise Wallace, who paused to allow Trump to continue his answer.

Compared to his sons, who largely testified that they deferred to accountants and lawyers, Trump portrayed himself as an experienced businessman who "was certainly more expert than anybody else" when it came to the value of his own properties.

Asked about properties like 40 Wall Street and a retail space near Trump Tower, the former president confidently used real estate shorthand to explain why he thought certain properties were undervalued. He also repeated that his brand value -- which was not included in his financial statement -- is worth billions.

"The most valuable asset was the brand value," Trump said. "I became president because of my brand."

However, Trump acknowledged that two properties -- his triplex apartment in Trump Tower and his Seven Springs estate in New York's Westchester County -- were overvalued and had to be adjusted in his financial statement.

"I thought the apartment was overvalued when I looked at it," Trump said, appearing to refer to a $200 million correction applied to his statement after Forbes magazine reported that he falsely stated the apartment was three times its actual size.

Asked about the change in the statement, Trump acknowledged the square footage mistake, which he blamed on a broker, while also claiming that the number was "not far off" from reality when you consider the square footage of Trump Tower's roof.

"It's a mistake … [but] there's a disclaimer clause so you don't have to get sued by the attorney general of New York," Trump said.

Trump made a similar admission about the $291 million valuation of Seven Springs.

"I thought it was too high and we lowered it," Trump said, though he could not provide specifics about the changed valuation.


'This is a very unfair trial,' Trump says

Judge Engoron has continued to interrupt the former president, imploring him to refrain from lengthy responses as Trump has remained calm and measured while attacking the judge and making political pronouncements.

"I beseech you to control him," Engoron barked at Trump's attorney, Christopher Kise. "If you can't, I will."

Kise has attempted to argue that Trump is entitled to answer questions in his own way.

"This is a situation where you have on the stand a candidate for president of the United States. Being here takes away from that effort," Kise said. "The court needs to hear what he has to say about these statements."

"No, I am not here to hear what he has to say," Engoron shot back.

When Trump attorney Alina Habba attempted to weigh in, Engoron raised his voice, telling her, "Sit down already! Sit down."

After a moment's pause, Trump weighed in with a measured tone.

"This is a very unfair trial," Trump said. "I hope the public is watching."


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.