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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Court adjourned for the day, with Trump on deck for Monday

Judge Engoron adjourned court until Monday, when the state plans to call former President Trump to the stand.

"We will reconvene on Monday at 10 a.m., and the first witness will be...?" Engoron asked state attorney Andrew Amer.

"The only witness will be Donald J. Trump," Amer said.


Eric Trump pressed on Mar-a-Lago valuation

Eric Trump has stepped down from the witness stand after facing an hour of questions from state attorney Andrew Amer.

Amer concluded his questioning by directly asking Eric Trump about the $2 million severance agreement between the Trump Organization and its former CFO, Allen Weisselberg.

"Did you participate in the business agreement to enter into this business decision with Mr. Weisselberg?" Amer asked.

"Yes," Eric Trump said.

"Did your father direct you to enter into this agreement with Mr. Weisselberg?" Amer asked.

"No, he did not," Eric Trump replied. He reiterated, "I did this agreement with Mr. Weisselberg."

Pressed on the value of Trump's Mar-A-Lago property, Eric Trump denied knowing that the club was valued for tax purposes as a commercial property used as a social club.

"It is very clear that Mar-a-Lago is not a club, it is a private residence. I don't see anything wrong with that. 100 percent," Eric Trump said.

Previous testimony and documents in evidence demonstrated that despite the property being restricted by deed to club usage, Donald Trump continued to overvalue the property as if it could be sold as a private residence. Judge Engoron already found that the club was overvalued by 2,300%.

"Mar-a-Lago is a residence that could be sold to a private individual," Eric Trump insisted.


Eric Trump testifies that he signed financial certifications

Eric Trump said that he signed three financial certifications to lenders that relied on his father's statements of financial condition, which are at the heart of the attorney general's case.

"I certified something I believed was accurate. My lawyers told me was accurate, and our financial people told me was accurate," Eric Trump said.

While Eric Trump did not certify his father's financial statements themselves, like his brother Donald Trump Jr., the attorney general has alleged that these certifications to lenders are similarly fraudulent.

Eric Trump said that he did not personally review the methodologies or supporting data for the financial statements themselves, instead relying on lawyers and accountants to verify the documents for him.

"I wouldn't sign something that I thought was inaccurate," he said multiple times.


Trump lawyer broaches mistrial over unproven report of bias

Eric Trump has resumed his testimony this morning.

Before he took the stand, Donald Trump's attorney Chris Kise said that the defense team is considering requesting the mistrial on the basis of a Breitbart report alleging bias from Judge Engoron's law clerk.

"I think the defense will have to give serious consideration to seeking a mistrial," Kise said, initially referencing a vague media report that "some random individual" filed a complaint on Oct. 3 alleging "accusations of partisan political activity" by the judge's clerk.

"It's not information, it's an allegation," Judge Engoron initially responded. "I don't know what you are talking about, and I will respond later."

A state attorney argued that Kise was arguing a "frivolous position" and requested specifics about the news report Kise cited.

"I'm not the internet person. I want to say it is on Breitbart maybe. It's on a news outlet," Kise said, prompting laughter from the gallery.

"This idea that somebody notified me ... is absolutely untrue. OK? Absolutely untrue," Engoron responded. "I will let everybody in the room decide what they think about Breitbart."

"It's a shame you descended to this level," Engoron added.

A court spokesperson subsequently described the report as "not a serious complaint."


Estate's valuation included 7 mansions that weren't yet built

When the Trump Organization valued its Seven Springs compound in New York's Westchester County at $261 million, the company included seven mansions, estimated to be worth $23 million each, that had not been built, longtime Trump Organization controller Jeff McConney testified.

In contrast, an appraiser had said Seven Springs was worth $56 million, excluding development rights for the property, which hadn't been awarded.

McConney testified that he did not factor into the valuation when, or whether, the homes would be built.

"You have treated, for the purposes of this valuation, a profit of $23 million per home as if it were realized immediately?" asked Andrew Amer with the New York attorney general's office.

"Correct," McConney said.

Amer said that Trump Organization VP Eric Trump, in a call with McConney the following year, instructed McConney to continue to value the seven mansions the same as he did in 2013.

McConney is testifying as a hostile witness since he is also a named defendant in the case. It gives Amer wider latitude in his examination, though defense attorneys have made several objections about leading questions.

The proceedings were briefly interrupted by the blaring of a horn that was audible in the courtroom, prompting Amer to interrupt his questioning and remark, "Someone is having a celebration."

Judge Engoron, who has displayed a dry wit throughout the trial, responded, "Maybe they're celebrating us."