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


0

Michael Cohen could testify next Monday, judge says

The earliest possible day that former Trump attorney Michael Cohen could testify is next Monday, Judge Engoron said.

Cohen, who for years was Trump's so-called "fixer," said an ongoing medical issue had forced him to postpone his testimony, which was originally scheduled to begin tomorrow.

Judge Engoron noted that he has not yet received Cohen's "all-important doctor's note," but that he hopes to receive it sometime today.

Trump attorney Chris Kise criticized the delayed appearance of Cohen, who he described as central to the state's case -- noting that Cohen has continued to post to social media despite his medical issue.

"He does continue to be active in his pursuit of my client," Kise said. "He does not appear to be that infirm."


Trump wanted his net worth to 'go up,' exec says he was told

Trump Organization executive Patrick Birney testified that then-CFO Allen Weisselberg told him that Trump wanted to see his net worth "go up."

"Did Allen Weisselberg ever tell you that Mr. Trump wanted his net worth on the statement of financial condition to go up?" state attorney Eric Haren asked Birney.

"Yes," Birney said. "I think that happened in Allen Weisselberg's office."

Birney said the meeting with Weisselberg happened sometime between 2017 and 2019, but could recall a specific date.

The testimony prompted a quick objection from Trump attorney Chris Kise, who pushed back on claims from the New York attorney general that there was a conspiracy between Trump Organization employees to inflate Trump’s net worth.

"They are mixing hearsay and the conspiracy," Kise argued.

Judge Engoron asked both parties to submit two-page memos by tomorrow about whether the statements from Birney are hearsay.

Trump's lawyers declined to cross-examine Birney, who stepped down from the stand, clearing the way for Trump Hotels chief accounting officer Mark Hawthorn to testify.


Judge says he'll clarify upcoming schedule

On the heels of former Trump attorney Michael Cohen's decision to delay his testimony, Judge Engoron said that "the schedule for the rest of this week is somewhat up in the air."

The judge, however, promised to offer clarity about the trial schedule later today.

Engoron also acknowledged the anticipated return on Tuesday of former President Trump to the courtroom.

When the judge, while waiting for a witness to enter, joked about arguing before an empty chair, defense attorney Chris Kise replied, "It won't be empty tomorrow."

Engoron responded with a smile, saying "So I hear."


Michael Cohen delays testimony as trial enters Week 3

The civil fraud trial of former President Trump, his adult sons, and Trump Organization executives enters its third week with a notable schedule change.

Trump's former lawyer and so-called "fixer" Michael Cohen, who was initially scheduled to begin his testimony on Tuesday, has delayed his court appearance due to a preexisting medical condition.

"I look forward to testifying and correcting the record as to the multiple misstatements and responses by previous witnesses who stated … 'I don't recall.' Unfortunately for them, I do," Cohen told ABC News on Saturday.

Trump is expected to attend multiple days of the trial beginning on Tuesday, according to sources familiar with his plans.

In the meantime, Trump Organization executive Patrick Birney is expected to conclude his testimony this morning.

Birney is scheduled to be followed on the stand by Mark Hawthorn, the chief accounting officer at Trump Hotels.


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."