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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Defense presses ex-accountant on asset appraisals

Pressing Mazars USA accountant Donald Bender on how often he asked the Trump Organization for appraisals of the former president's assets during the years he worked on Trump's account, defense lawyers attempted to portray Bender as neglecting to do his job compiling Trump's financial reports.

"I didn't know that the Trump Organization had any access to appraisals they did not give me," Bender testified.

The longtime Trump accountant struggled to articulate how often he made requests for appraisals, and defense counsel Clifford Robert drilled into the fact that those requests appear to never have been made in writing to Trump Organization controller Jeffrey McConney.

"You don't really know what you asked Jeff McConney," Robert told Bender.

Bender was also asked about Trump's three adult children, who all previously served as executives in the Trump Organization, and whether they were involved with Trump's statement of financial condition.

The accountant said that -- apart from a brief conversation he once had with Eric Trump -- Eric, Don Jr. and Ivanka Trump were not involved in issuing Trump's financial statements.

On redirect examination, state attorneys briefly asked questions of Bender suggesting that the defense's questions had been based on an outdated accounting standard.

That concluded Bender's testimony.


Judge says he'll cap questioning at an hour and a half

Trump attorney Jesus Suarez, in his cross-examination of longtime Trump accountant Donald Bender, is attempting to ask Bender about each year's compilation of Trump's statement of financial condition.

In response, facing the possibility of hours of repetitive questions, Judge Engoron said he would limit Suarez to an hour and a half of cross-examination.

Defense lawyer Clifford Robert is also expected to question Bender.


Cross-examination of ex-accountant resumes

The defense's cross-examination of longtime Trump accountant Donald Bender has resumed.

New York Attorney General Letitia James is attending court today, but Eric Trump of the Trump Organization is absent from the gallery.

When Donald Trump attended over the first three days of the trial, the gallery was packed -- but without him in attendance, it's now roughly half full.


Without Trump in attendance, trial resumes for Day 4

The trial resumes this morning for its first full day of action without the presence of former President Trump, who returned to Florida yesterday after attending the trial's first three days.

With 26 witnesses yet to testify for the state, today is likely to provide an indication of the trial's duration, which Judge Engoron scheduled to take three months.

Longtime Trump accountant Donald Bender of Mazars USA is back on the stand for more cross-examination from defense lawyer Jesus Suarez, who has been walking Bender though years of financial statements in an attempt to paint him as asleep of the wheel while handling Trump's accounting.

If Bender gets off the stand today, the state will next call longtime Trump Organization comptroller Jeffrey McConney, who is a defendant in the case itself.


Insurance underwriter to testify

An underwriter who worked on a Trump Organization insurance policy to cover legal expenses incurred by the firm's executives is scheduled to testify this morning.

Michael Holl, an underwriter at Tokio Marine HCC, worked on the Trump Organization's Directors and Officers insurance policy in 2016 and 2017, according to the New York attorney general.

With Donald Trump about to be inaugurated president at the time, the Trump Organization attempted to increase their policy's limit to $50,000,000, which was ten times higher than their previous limit, according to the attorney general.

"In response to specific questioning from the underwriters, the Trump Organization personnel represented that there was no material litigation or inquiry from anyone that could potentially lead to a claim under the D&O coverage," the state alleged in their complaint.

However, four months before that representation was made, Trump Organization executives learned about an ongoing investigation by the attorney general into the Trump Foundation as well as Trump family members, according to the complaint.