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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Trump wants trial paused while he appeals judge's ruling

As expected, Trump's lawyers have filed an application for an immediate pause of the ongoing trial, pending their appeal of Judge Engoron's ruling granting partial summary judgment in the case last week.

Engoron, in last week's ruling, ordered the cancellation of Trump's business licenses in New York after finding that he had committed fraud in his business dealings.

In their application for a stay, Trump's lawyers argue that Engoron's order was "unprecedented," incorrectly decided, and unfairly punitive.

Warning that the consequences of Engoron's order would do "severe and irreparable harm" to not only defendant but also "innocent nonparties and employees who depend on the affected entities for their livelihoods," the lawyers asked for an immediate pause of the trial.

"It is respectfully submitted that an immediate stay of enforcement of Supreme Court's decision and order is necessary to prevent irreparable harm pending resolution of Appellants' application to correct a grave miscarriage of justice," the application says.


Trump withdraws lawsuit against judge

A week after an appeals court denied Trump's request to halt the ongoing trial, the former president is withdrawing a suit he filed against Judge Arthur Engoron and New York Attorney General Letitia James.

Trump originally undertook the legal move to force the judge to either issue a ruling limiting the case against him or delay the trial.

The suit was discontinued without prejudice, according to a filing.

However, Trump's legal team has told the court that it plans to file a new request for a stay of the trial, pending appeal, sometime today.


Trump Organization controller to resume testimony

Former Trump Organization controller Jeffrey McConney, a defendant in the case, is scheduled to return to the witness stand this morning for a half-day session of court.

State attorneys are expected to continue to probe the Trump Organization's internal procedures that resulted in the inflated values on Trump's financial statements, including how the former president's own Trump Tower penthouse grew in listed value from $80 million in 2011 to $327 million in 2016.

Judge Arthur Engoron already ruled last week that Trump overvalued the apartment by over $200 million based on the "false and misleading" claim that the residence was 30,000 square feet, rather than its actual size of 10,996 square feet.

When McConney asked Kathy Kaye, a Trump International Realty executive, for assistance valuing the residence in 2013, Kaye cited the penthouse's ties to "celebrity" and its uniqueness as partial reasons to add $20 million to the apartment's listed value, according to an email that was entered into evidence.

"I don't see how one would list below 8K per sq foot at this point, which brings us to 240,000M ... 200,000M is a safe estimate," Kaye wrote in the email.

McConney also appeared to struggled to explain why he used asking prices, rather than the accepted practice of using sale prices, when valuing the penthouse.

The exchange prompted New York AG special counsel Andrew Amer to confront McConney with his testimony during a previous investigative interview, in which McConney said asking prices were a poor measure of value since "you can ask anything you want to."


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.


Judge, clerk subjected to daily threats, official says in gag order filing

An attorney for Judge Arthur Engoron also filed in support of the gag order in Donald Trump's civil fraud trial, arguing that violent threats have increased since the gag order was lifted.

The limited gag order, which prohibited Donald Trump and his attorneys from publicly commenting about Engoron's staff, was issued by the judge last month after Trump posted about the judge's law clerk on social media. Judge David Friedman of the appellate division's First Department stayed the order on Thursday, citing constitutional concerns over Trump's free speech rights.

Engoron's filing includes a report from Charles Hollon of the Judicial Threats Assessment Unit of the New York State Court System's Department of Public Safety. According to the report, Engoron and his principal law clerk, Allison Greenfield, have been inundated with credible, violent and antisemitic threats since Trump began criticizing Greenfield.

"The threats against Justice Engoron and Ms. Greenfield are considered to be serious and credible and not hypothetical or speculative," Hollon wrote in the report.

Greenfield has been the victim of daily doxing of her personal email address and phone number, receiving dozens of calls, emails and social media messages daily, according to Hollon. Approximately half the harassing messages have been antisemitic, according to Greenfield.

In the report, Hollon wrote that Engoron was the subject of credible threats before the trial had started, but Trump's Oct. 3 Truth Social post directed at Greenfield exponentially increased the number of threats directed at her.

The report included multiple examples of voicemails that were left on the telephone in Engoron's chambers.

Hollon said the messages have created an "ongoing security risk" for Engoron, his staff and family, but that the gag order had been effective in lowering the number of threats.

"The implementation of the limited gag orders resulted in a decrease in the number of threats, harassment and disparaging messages that the judge and his staff received," Hollon said in the report. "However, when Mr. Trump violated the gag orders, the number of threatening, harassing and disparaging messages increased."

Engoron's lawyer, Lisa Evans, said the threats detailed in Hollon's affirmation justify the gag order, which functions as a reasonable limit on free speech.

"The First Amendment does not prohibit courts from limiting speech that threatens the safety of the court's staff," Evans wrote.

Trump's reply to the filing is due on Nov. 27, after which the First Department will decide whether to fully lift the gag order.