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
Trump Organization controller grilled about assets
Testifying about his responsibilities as the Trump Organization's longtime controller, co-defendant Jeffrey McConney was grilled on the stand by special counsel Andrew Amer of the New York attorney general's office.
Amer pressed McConney about alleged issues with Trump's financial documents.
Asked about why he listed assets from Vornado Trust -- which Trump did not control -- as being under Trump's control, McConney suggested it came down to accounting convenience.
"We couldn't keep adding columns for every bank or brokerage account," McConney said, later adding that the money was held in a Capital One account like the other assets, even if Trump could not access that account.
McConney testified that the individuals who accessed the spreadsheet would understand who controlled that money.
"People can make assumptions in any way they want to. The users looking at this spreadsheet would know it's not one bank account," McConney said.
McConney appeared to struggle to answer questions about the value of Trump's triplex apartment in Trump Tower, which, according to the Trump Organization, ballooned in value from $80 million in 2011 to $327 million in 2016.
The controller testified that he relied on data from the StreetEasy website, adopted cost-per-square-foot estimates from newer properties, and took other Trump Organization executives' claims about the apartment at face value.
McConney is scheduled to continue his testimony tomorrow as the day's only witness.
Defense plans to request a halt to the proceedings
Donald Trump's legal team plans to request a stay of the ongoing fraud trial, pending their appeal of Judge Engoron's partial summary judgment ruling issued last week, defense lawyer Chris Kise notified Engoron in court.
In seeking to halt the trial, the defense team said they plan to file their request tomorrow morning and wanted to provide notice to the state.
State attorneys objected that less than 24 hours' notice is not enough.
"That's clearly not sufficient," Engoron said of the notice, adding that the appellate court could deny the request due to the lack of proper notice.
Note on financial document suggests Trump had final say
A marked-up version of the Trump Organization's 2014 statement of financial condition suggests that Trump himself issued final approval for the statements, according to the document, which was entered into evidence today.
The document included a handwritten note from longtime Trump Organization Controller Jeffrey McConney saying "DJT TO GET FINAL REVIEW."
The document also included a list showing the 2013 value of Trump's properties, which McConney had crossed out to adjust to the 2014 values.
Testifying on the stand, McConney -- who joined the Trump Organization in 1987 and was responsible for Trump's financial statements between 2011 and 2017 -- testified that he worked in conjunction with accounting firm Mazars USA and Trump Organization chief financial officer Allen Weisselberg to issue the statements.
While McConney acknowledged that he wrote the note on the document, he could not provide specifics about the extent of Trump's involvement.
Judge outlines next steps for dissolving Trump's companies
As the questioning of witnesses continues, Judge Engoron has issued an order outlining the next steps to dissolve Trump's companies in New York.
Engoron last week found that Trump and his adult sons used fraudulent documents to conduct business, and ordered the cancellation of his business certificates in the state. Trump appealed that ruling yesterday.
In today's order, Engoron asks the defendants to provide a list of "entities controlled or beneficially owned by Donald J. Trump" -- and the other co-defendants -- to the Hon. Barbara S. Jones, the independent monitor overseeing Trump's business activities.
Trump is also required to notify Jones of any new business applications or changes to preexisting entities.
The order also gives the parties 30 days to recommend a receiver to oversee the dissolution of Trump's corporate assets. However both parties previously suggested that they plan to recommend Jones for that position.
In the meantime, the ongoing trial is being held to determine what additional penalties Trump might face and what might happen with the multiple causes of action included in the attorney general's lawsuit.
'I wasn't involved' preparing financial statements, Trump Jr. says
Before stepping down from the witness stand at the end of the afternoon, Donald Trump Jr. was asked repeatedly about his involvement in the Trump Organization's statements of financial condition -- the allegedly fraudulent documents that underpin the attorney general's case.
Trump Jr., who signed and certified the accuracy of the statements while his father was president between 2016 and 2021, said that he was not involved in preparing the filings.
"I wasn't involved in the compilation of this statement of financial condition," Trump Jr. said, placing the responsibility on his accountants.
"Did you work on the statement of financial condition for June 30, 2017?" state attorney Colleen Faherty asked.
"I did not. The accountants worked on it. That's what we paid them to do," Trump Jr. said.
Throughout the afternoon, the tone of the proceedings alternated rapidly between lighthearted and heated, varying from playful interactions between Trump Jr. and Judge Engoron, to bitter spats between some of the lawyers.
"I know you don't like it when good evidence comes in," Faherty told the defense lawyers during one particularly heated exchange.
"There's no reason to raise your voice," Donald Trump Jr.'s lawyer, Clifford Robert, responded.
Trump Jr. is scheduled to return to the stand tomorrow morning.