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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Defense presses ex-accountant on asset appraisals

Pressing Mazars USA accountant Donald Bender on how often he asked the Trump Organization for appraisals of the former president's assets during the years he worked on Trump's account, defense lawyers attempted to portray Bender as neglecting to do his job compiling Trump's financial reports.

"I didn't know that the Trump Organization had any access to appraisals they did not give me," Bender testified.

The longtime Trump accountant struggled to articulate how often he made requests for appraisals, and defense counsel Clifford Robert drilled into the fact that those requests appear to never have been made in writing to Trump Organization controller Jeffrey McConney.

"You don't really know what you asked Jeff McConney," Robert told Bender.

Bender was also asked about Trump's three adult children, who all previously served as executives in the Trump Organization, and whether they were involved with Trump's statement of financial condition.

The accountant said that -- apart from a brief conversation he once had with Eric Trump -- Eric, Don Jr. and Ivanka Trump were not involved in issuing Trump's financial statements.

On redirect examination, state attorneys briefly asked questions of Bender suggesting that the defense's questions had been based on an outdated accounting standard.

That concluded Bender's testimony.


Judge says he'll cap questioning at an hour and a half

Trump attorney Jesus Suarez, in his cross-examination of longtime Trump accountant Donald Bender, is attempting to ask Bender about each year's compilation of Trump's statement of financial condition.

In response, facing the possibility of hours of repetitive questions, Judge Engoron said he would limit Suarez to an hour and a half of cross-examination.

Defense lawyer Clifford Robert is also expected to question Bender.


Cross-examination of ex-accountant resumes

The defense's cross-examination of longtime Trump accountant Donald Bender has resumed.

New York Attorney General Letitia James is attending court today, but Eric Trump of the Trump Organization is absent from the gallery.

When Donald Trump attended over the first three days of the trial, the gallery was packed -- but without him in attendance, it's now roughly half full.


Without Trump in attendance, trial resumes for Day 4

The trial resumes this morning for its first full day of action without the presence of former President Trump, who returned to Florida yesterday after attending the trial's first three days.

With 26 witnesses yet to testify for the state, today is likely to provide an indication of the trial's duration, which Judge Engoron scheduled to take three months.

Longtime Trump accountant Donald Bender of Mazars USA is back on the stand for more cross-examination from defense lawyer Jesus Suarez, who has been walking Bender though years of financial statements in an attempt to paint him as asleep of the wheel while handling Trump's accounting.

If Bender gets off the stand today, the state will next call longtime Trump Organization comptroller Jeffrey McConney, who is a defendant in the case itself.


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.