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 Jr. assails judge's finding on Mar-a-Lago

In presenting a slideshow chronicling the Trump Organization's properties, Donald Trump Jr. highlighted many of their luxury features and iconic views -- implicitly suggesting their value.

That's particularly true of Trump's Mar-a-Lago Club, which Judge Engoron in a pretrial ruling determined was worth only a fraction of the amount claimed by Donald Trump, because Trump signed a deed that restricted its use to a social club, thereby limiting its resale value.

Describing how he took "umbrage" to the judge's determination that Mar-a-Lago was worth between $18 and $28 million, Trump Jr. highlighted specific features to challenge that finding. Showing an aerial photo of the property, Trump Jr. said that a nearby home whose size was dwarfed by the social club has been on sale for $50 million.

"You couldn't build that atrium for $18 million today," Trump Jr. said while presenting a photo of the building's historic atrium.


With glossy slides, Trump Jr. recounts firm's story

Donald Trump's testimony in the defense's case has so far centered around a slide show being presented by the defense, entitled "The Trump Story," that paints a timeline of Donald Trump's real estate acquisitions. When state attorneys objected to the glossy presentation -- which Trump Jr. acknowledged was created by his marketing team -- the judge allowed the slides, and thus permitted Trump Jr. to testify unrestrained about the company's properties.

"He's an artist with real estate. He sees the things other people don't," Trump Jr. said at one point when describing his father.

As he narrates the slide show, Trump Jr.'s testimony resembles a lecture on real estate, sprinkled with details about his family's properties -- such as the individual stones used to construct the Seven Springs estate or the bank safes at 40 Wall Street, which he said once stored gold from the Federal Reserve.

"They're actually spectacular ... it's truly a mechanical work of art," Trump Jr. said of the safes.

Referencing broken down historic properties that the company has transformed back to their former glory, Trump Jr. called such properties the "canvas" for his his "father's art."

"He understands and has an incredible vision that other people don't," Trump Jr. said.

After a particular lengthy response, Trump Jr. referenced his father's own tendency to speak in prolonged monologues, joking, "I got half the genes."


Trump Jr. details history of Trump Organization

Testifying for the defense, former President Trump's eldest son described his father as a real estate "visionary" who "sees the sexiness in a real estate project," creating value for the family business that cannot be captured on paper.

Donald Trump Jr. began his testimony with a quip after Judge Engoron welcomed him back to the stand following his testimony earlier in the month.

"I'd say it's good to be here, but the attorney general would probably sue me for perjury," Trump Jr. joked.

In his testimony, Trump Jr. described the Trump Organization as "a large family business," with Trump and his eldest children at the top and other executives handling many of the details.

"If there were numbers and things, I would rely on them to give me that," Trump Jr. said.

He recounted the history of the Trump Organization, beginning with his great-grandfather who he said built hotels in the Yukon Territories of Canada. His grandfather, Fred Trump, "started working on job sites around Queens, learned the trades" and eventually "created an incredible portfolio, by the time of his passing, of rental apartments in Brooklyn and Queens."

A state attorney jokingly objected that references to the 1800s were outside the statute of limitations -- then more seriously objected to the history lesson's relevance.

"I think it is relevant to get the historical perspective -- I find it interesting," Judge Engoron said in overruling the objection. "Let him go ahead and say how great the Trump Organization is."

Trump Jr. obliged.

"My father learned a lot of the business from him, but had some flair and saw New York City and Manhattan as the ultimate frontier," he said. Speaking of Trump Tower, he said, "I think it would have been one of the first, I think great, ultra-luxury real estate emerging in Manhattan."


Donald Trump Jr. takes the stand for the defense

"Would you like to call your first witness, defense?" Judge Arthur Engoron asked to begin court this morning.

"The defense calls Donald Trump Jr. to the stand," defense attorney Clifford Robert responded.

Like his last time on the witness stand when he was called by state attorneys, Trump Jr. appears comfortable on the stand, punctuating his testimony with lighthearted remarks.

Robert began his direct examination with some questions about Trump Jr. 's biography, starting with his graduation from the University of Pennsylvania.

"Was a bartender for about 18 months," Trump Jr. said about his first job out of college.

"Did you enjoy that?" Robert asked.

"I did," said Trump Jr., joking that he had a challenging conversation with his father when he began that job.


Judge stops expert's testimony following state's objection

Donald Trump's lawyers abruptly stopped the testimony of their first expert witness -- who was expected to testify for a full day or two -- after Judge Engoron limited the topic areas of his testimony.

Steven Witkoff, a real estate investor and longtime friend of Trump's, was brought into court by the defense team to testify that Trump's Doral golf club was undervalued in Trump's financial statements.

But Judge Engoron sustained an objection from the state barring any testimony about the valuation of Doral, significantly limiting Witkoff's testimony and appearing to hamper the defense strategy proposed by Trump's attorney Chris Kise.

Kise argued that the inaccuracies in Trump's statement of financial condition can cut both ways: Even if some properties were overvalued, other properties like Doral were significantly undervalued and balanced out the statement, according to Kise.

"It is highly, extraordinarily relevant if there are assets that are undervalued substantially on those same statements," Kise said. "They can't look at this one-sided."

State attorney Andrew Amer fiercely rebutted that argument, telling Engoron he should not take the defense's position that the inconsistencies "come out in the wash."

That argument appeared to convince Engoron, who said that overvaluations would not "insulate" a false valuation. He promised to sustain any objection that related to the value of Doral -- an approach Kise described as "lunacy."

"The reader of the financial statement has the right to know whether each particular number was accurate," Engoron said. "They are looking for accuracy."