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
'Tell me what the point is,' judge tells Trump attorney
Trump attorney Jesus Suarez is continuing his attempts to discredit former Trump accountant Donald Bender's testimony, but his arguments seem to be wearing thin for the judge.
After Suarez played a short clip from Bender's deposition, Judge Engoron -- who is deciding the case himself -- told the attorney, "There's no jury. Tell me what the point is."
During another portion of the cross-examination, Engoron told Suarez, "It's starting to sound like 'How many angels can dance on the head of a pin.'"
Cross-examination of ex-accountant continues
Continuing his cross-examination of Mazars USA accountant Donald Bender, who formerly worked on Trump's account, Trump attorney Jesus Suarez is adopting a less aggressive approach to his questioning than the theatrical approach he took yesterday.
When Justice Engoron appeared unreceptive to one part of Suarez's questioning, Trump, sitting with his attorneys, visibility groaned.
"It's easiest just to move on. Take a hint," Engoron said to Suarez about one of his attempts to discredit Bender.
Trump has been conferring with his attorney Alina Habba, taking notes, reviewing documents, and even ripping up papers while seated at the counsel table during the cross-examination of Bender.
Trump says his net worth is 'much higher' than statements say
Former President Trump, on his way into court for Day Three of his trial, said that his financial statements under-report his wealth, despite the judge in his case already ruling that his financial records were fraudulently inflated.
"My real net worth is much higher than that, much higher than the statement," Trump told reporters.
Decrying his trial as the "beginning of communism in our country," Trump continued his attacks on New York Attorney General Letitia James, but did not comment on Judge Arthur Engoron.
"This is just a continuation of the witch hunt that started the day I came down the escalator in Trump Tower," Trump said.
Trump back in court for Day Three
Former President Trump is back in court for Day Three of the trial, where defense counsel is expected to continue its cross examination of longtime Mazars accountant Donald Bender.
Once questioning of Bender concludes, the state says they plan to call Whitley Penn audit partner Camron Harris, who took over Trump's accounting after Mazars.
Justice Arthur Engoron may also address the narrow gag order he placed on Trump and the other defendants yesterday regarding making statements about the judge's staff, after the former president made what Engoron described as a "disparaging, untrue, and personally identifying post" involving Engoron's clerk.
Deutsche Bank expected Trump to value assets fairly, banker says
Former Deutsche Bank managing director Rosemary Vrablic testified on cross-examination by state attorneys that Donald Trump, Ivanka Trump, and Donald Trump Jr. secured private financing using recourse -- meaning they were personally liable for the loan.
"Sorry about the recourse issue -- a dirty word, I know -- but it is a requirement in private banking," Vrablic wrote in a 2011 introductory email to Donald Trump Jr.
Vrablic confirmed that each of the Trumps she worked with -- Donald, Ivanka, and Donald Trump Jr. -- used a personal guaranty to secure better financing terms.
"It gives the flexibility to be creative on some solutions because the person is standing behind it," Vrablic testified.
State attorney Kevin Wallace appeared to focus on the personal guaranty during the cross-examination, with the discussion bringing the focus back on the representation of the value of Trump's assets.
While Vrablic confirmed that she never personally reviewed Donald Trump's statement of financial condition, she said the bank still expected it was accurate.
"You would have had an expectation that a borrower like Mr. Trump would present their financial information fairly?" Wallace asked.
"Yes," Vrablic replied.