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
AG requests forensic review of Trump Organization data
New York Attorney General Letitia James is requesting a forensic review of Trump Organization electronic data after identifying a missing set of emails between former CFO Allen Weisselberg and a real estate executive.
"The failure to produce these later emails indicates a breakdown somewhere in the process of preserving, collecting, reviewing and producing documents," state attorney Kevin Wallace wrote in a letter to Judge Arthur Engoron.
The request follows an accusation from Forbes Magazine, reported in a story last week, that Weisselberg committed perjury on the stand, based on "old emails and notes, some of which the attorney general's office does not possess." Despite Weisselberg testifying that he "never focused on the apartment," the Forbes story said that he "played a key role in trying to convince Forbes over the course of several years that it was worth more than it really was."
The letter from the attorney general appears to focus on an email exchange related to the value of Trump's golf courses, rather than the value of his Trump Tower penthouse at the center of the Forbes accusations.
"We would therefore propose that the Monitor undertake a forensic examination of electronic data held by the Trump Organization for the very brief period August to September of 2016 to determine if all responsive information has been produced," Wallace wrote.
While Weisselberg's testimony concluded last Thursday, both parties have reserved the right to call the former Trump Organization CFO back to the stand.
Trump not expected back in court today
After attending his civil fraud trial for two days this week, former President Trump does not plan to return to court today.
"We're having a very big professional golf tournament at Doral, so probably not," Trump told reporters yesterday when asked about his plans to return to court.
LIV Golf is holding a team championship at Trump's Miami, Florida, golf course this weekend, which Trump plans to attend.
He has indicted that he could return to court for the testimony of his former attorney Michael Cohen, which could happen next week.
Jack Weisselberg set to continue testimony
Day 13 of the trial is scheduled to get underway this morning with continued testimony from Ladder Capital executive Jack Weisselberg, who took the stand yesterday afternoon.
The son of former Trump Organization CFO Allen Weisselberg, who is a defendant in the case, Jack Weisselberg said yesterday that he often worked directly with his father while working on a 2015 deal to refinance the Trump Organization's $160 million mortgage of its 40 Wall Street office building.
The younger Weisselberg also described interactions with the Trump Organization executives who worked to protect the sensitivity of Trump's financial information.
"I think they were concerned about confidentiality and wanted to make sure it got into my hands," said Jack Weisselberg, describing how Trump's financial documents were sent to him via a messenger.
He also testified how, when Trump Organization executives were contemplating a 2012 loan, they appeared sensitive about making certain financial documents public -- including how much fashion brand Gucci paid in rent at Trump Tower.
"He is also nervous about Gucci's rent becoming public knowledge, as he tends to embellish from time to time," Jack Weisselberg wrote in a 2012 email that was entered into evidence, apparently referring to Trump.
"I recall it being public was a concern," Jack Weisselberg said when asked about the information referenced in the email.
'We are here to enforce the law,' says AG
New York Attorney General Letitia James denounced Donald Trump as "performative" during brief remarks outside the courthouse after court was adjourned for the day.
"He's called me disgraceful. He's called me radical. He's called me a racist, and this is only Week Three," James said of the former president.
She added that she looks forward to seeing Trump again, likely during the testimony of his former lawyer Michael Cohen, which could happen next week. Trump earlier told reporters he likely will not attend court tomorrow.
"We are here to enforce the law, and nothing will change that," James said.
McConney says overvaluation of Trump’s penthouse was incorrect
Former Trump Organization controller Jeff McConney, testifying for the defense, said that he overvalued Donald Trump's penthouse apartment by over $100 million because he relied on an incorrect email.
Judge Arthur Engoron determined in his partial summary judgment that the penthouse was overvalued by as much as $200 million because it was falsely listed as being three times larger than its actual size.
To get to that value, McConney said relied on a Trump Organization broker who falsely represented the apartment was 30,000 square feet.
"I would rely on him. I figured he knew the property a lot better than I did," said McConney, who added that he never spent considerable time in the apartment.
The Trump Organization lowered the value of the penthouse by more than $200 million in 2017 after a Forbes magazine article exposed the error.
McConney's testimony came before he broke down on the stand at the end of his direct examination.