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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Jared Kushner would lend 'perspective' on deals, says Ivanka Trump

Ivanka Trump's husband Jared Kushner, who like Ivanka Trump served as a senior adviser in the Trump White House, would frequently weigh in on her family's real estate negotiations in the years before Donald Trump became president, Ivanka Trump testified.

State attorneys shared emails Ivanka Trump had sent her husband during negotiations with bankers over loan interest rates. Asked by state attorney Louis Solomon why she would share those records with Kushner, Trump responded, "It is not uncommon that I would ask my husband's perspective on something I was working on."

"My husband also was in real estate, and would have perspective for me," she said of Kushner, who, like Ivanka Trump, is not a defendant in the case. "So periodically we would discuss what we were working on."

Attorneys for Trump challenged the admissibility of emails belonging to Kushner, citing spousal privilege.

Justice Engoron overruled those objections because they communicated over work emails.

"If you use a work email that is subject to being seen by other people, you waive confidentiality," Engoron said.


New York AG moves to stop testimony from defense experts

Donald Trump's lawyers are scheduled to begin presenting the defense's case on Monday following the conclusion of the presentation of the New York attorney general's case -- but New York AG Letitia James is arguing that four of the defense's expert witnesses are no longer relevant.

In a filing made today, James argues that Judge Engoron's partial summary judgment decision and subsequent changes to the state's case have made make the testimony from the four experts irrelevant.

State lawyers plan to make an oral motion to preclude the expert testimony tomorrow, according to their filing.


'I don't recall' discussion of financial statements, Ivanka Trump says

State attorney Louis Solomon grew visibly frustrated with Ivanka Trump's limited recollections during an exchange about Donald Trump's Old Post Office building in Washington, D.C.

Solomon attempted to confront Ivanka Trump with a document that showed that the General Services Administration -- which ran the selection process for the renovation of the building -- raised concerns about Donald Trump's financial statements in 2011. New York Attorney General Letitia James, who says the statements contained fraudulent valuations, alleges that both Donald Trump and Ivanka Trump addressed those concerns during an in-person meeting with GSA officials.

"It was a general presentation. I don't recall with specificity any discussion of financial statements," Ivanka Trump said, prompting Solomon to throw his hands in the air.

"When I ask a question, she doesn't remember," an exasperated Solomon said. "The witness does have a recollection, your honor!"

"Would you like to clarify the situation?" Judge Engoron directly asked Ivanka Trump, who repeated the same description of the meeting.

"I recall one in-person meeting" about the "big picture" of the project, Ivanka Trump testified. She said recalled no discussion of "financial statements or anything granular like that."

Donald Trump's lawyers, meanwhile, have continued to object to Solomon asking questions about conduct from over a decade ago, which they say is akin to ancient history for a fast-moving real estate company.

"The GSA decision was made years before the statute of limitations," Donald Trump's lawyer Chris Kise argued, though Engoron overruled the objection.


'You are starting to sound like your client,' judge teases lawyer

Donald Trump is not in court today, but his lawyer is beginning to sound like the former president, according to a quip from Judge Arthur Engoron.

Describing the Trump Organization's renovation of the Old Post Office building in Washington, D.C., Trump's lawyer Chris Kise argued that the building was transformed from a "hulking relic" into a "world-class facility."

"You are starting to sound like your client," Engoron said, prompting some laughs from the gallery.


Expert says property valuations can be 'wildly different'

Taking the witness stand as an expert witness for the defense, accountant Jason Flemmons offered testimony in support of Donald Trump's approach to valuing his Mar-a-Lago property, which has been the subject of debate throughout the seven weeks of the trial.

In his summary judgment decision, Judge Engoron found that Trump overvalued the estate by at least 2,300% because the Palm Beach County Assessor appraised the property's market value between $18 and $27.6 million after Trump signed a deed that restricted its use to a social club, potentially limiting its resale value as a residence but ensuring a tax cut. Trump, in contrast, listed its value in his financial statement between $426 million and $612 million, and during his appearances in court and online he has repeatedly attacked Engoron's finding.

Flemmons argued that Trump's approach to valuing his assets gave him latitude to consider his property's future revenue streams. That approach, according to Flemmons, could result in "wildly different values" between the numbers listed on a personal financial statement and a tax assessed value.

"Tax assessed values are typically on the lower end of the spectrum," Flemmons said, while Engoron looked on attentively.

While he never mentioned Mar-a-Lago by name, Flemmons was asked by defense attorney Jesus Suarez about a hypothetical property assessed at $18 million but valued closer to $500 million using a comparable sales approach -- the same approach used to value Mar-a-Lago.

"It would not be unusual to have a value in the hundreds of million using projected cash receipts," Flemmons said.

Engoron then turned his chair toward Flemmons and began asking his own questions.

"I am trying to get to the order of magnitude we are talking about here," Engoron said. "What is the highest value you have ever seen legitimately placed on such a property?"

Flemmons could not provide a specific example to answer Engoron's question but reiterated that a massive discrepancy could be appropriate.