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
'There's no fraud,' Trump says before entering courtroom
Donald Trump is back at the defense counsel's table in the courtroom, seated between his lawyers Alina Habba and Chis Kise.
Speaking to the press before entering the courtroom, Trump railed against the trial, telling reporters that his assets were undervalued, reiterating his desire for a jury trial, and criticizing New York Attorney General Letitia James.
"This is the railroading that's all coming out of the Department of Justice," Trump said without offering proof of the accusation.
Press photographers were briefly permitted to enter the courtroom and take photos before testimony resumed.
"They are the eyes and ears of the public, or at least the eyes in this case," Judge Arthur Engoron remarked as the photographers left the court.
Attorney general back in attendance
New York Attorney General Letitia James is attending the civil trial this morning.
After greeting the press in the courtroom's gallery, James returned to same front-row seat she used earlier in the trial.
James attended the first six days of the trial but had not been in the courtroom the last week.
Trump says he'll return to courtroom this morning
Donald Trump plans to attend his ongoing fraud trial in downtown Manhattan this morning, the former president said in a Truth Social post this morning.
Star witness Michael Cohen, Trump's former lawyer and self-described "fixer," will be absent from the courtroom after a medical issue delayed his testimony.
Trump will instead hear testimony from his company's assistant controller, Donna Kidder.
State attorneys also plan to call real estate executives who appraised Trump properties, as well as real estate executive Jack Weisselberg, the son of former Trump Organization CFO Allen Weisselberg, who worked on a refinanced loan for Trump's 40 Wall Street property.
Trump was in attendance for the first three days of the trial when it began two weeks ago.
Trump Hotels chief accounting officer concludes testimony
State attorney Andrew Amer concluded his direct examination of Trump Hotels chief accounting officer Mark Hawthorn by applauding Hawthorn's skills and experience.
Amer highlighted that Hawthorn successfully conducted cash flow analysis, understood estimated current value, and applied the generally accepted accounting principles to his work.
Asked by Amer if he was ever asked to work on Trump's statement of financial condition -- a job that was handled by other executives like CFO Allen Weisselberg and controller Jeffrey McConney, who in earlier testimony acknowledged their lack of knowledge regarding foundational accounting principles -- Hawthorn replied that he was never approached about the task.
"I would be qualified to give it a try," said Hawthorn.
Hawthorn then stepped down from the witness stand to make way for Trump Organization assistant controller Donna Kidder to begin her testimony, after which court was adjourned for the day.
Kidder's testimony is scheduled to resume tomorrow morning, when former President Trump is expected to return to the courtroom.
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.