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
Trump touts defense witnesses' testimony
Following the fourth full day of testimony from witnesses for the defense Thursday, Donald Trump took to social media overnight to tout his case.
The former president posted that defense witnesses have "conclusively" proven that his financial statements were conservative and adequately disclosed, while claiming that New York Attorney General Letitia James and Judge Arthur Engoron "knowingly, substantially, & outrageously" devalued his assets.
After criticizing Engoron's law clerk in a post last night, Trump's latest posts do not reference the clerk, who Trump was previously prohibited from mentioning under the limited gag order that was temporarily lifted yesterday.
With gag order lifted, Trump blasts judge's clerk online
Hours after an appeals court temporarily lifted a gag order that prohibited Donald Trump from commenting about court staff in his civil fraud trial, the former president criticized Judge Arthur Engoron's law clerk on social media.
Describing the gag order as "Ridiculous and Unconstitutional," Trump applauded the appeals court for its decision and described Engoron's clerk as "politically biased and out of control."
Engoron issued the limited gag order after Trump made a false social media post about the clerk last month. This evening's post marked the first time Trump has explicitly mentioned her since then.
Trump also attacked New York Attorney General Letitia James, calling her a "worldwide disgrace," and his former attorney Michael Cohen, who testified against him during the trial.
Engoron ends day without addressing gag order
After attentively watching the testimony of the defense's real estate expert Steven Laposa, Judge Engoron adjourned court for the day without referencing the stay of his limited gag order issued this afternoon by an appellate court.
The judge's clerk -- who was the subject of Trump's false social media post that triggered Engoron's limited gag order last month -- remained in her regular seat next to the judge after the ruling came down.
Court will resume with Laposa back on the stand Friday.
Real estate expert describes NY AG's approach as 'flawed'
The New York attorney general's approach to valuing Donald Trump's properties was "flawed," according to testimony from the defense's real estate expert Steven Laposa.
Laposa said that the attorney general's complaint relied on a market value analysis of Trump's properties, rather than the investment value of the assets, which would consider the asset's value based on an individual's investment requirements instead of market norms.
"In my opinion, it's flawed," Laposa said about the attorney general's findings.
Judge Arthur Engoron appeared attentive during Laposa's testimony, overruling an objection from the state that would have limited the scope of his testimony.
"I want to hear what he says about evaluations," Engoron said.
NY AG cites 'Pharma Bro' ruling in seeking lifetime ban for Trump
The New York attorney general's office says a federal appeals court decision upholding a lifetime industry ban for disgraced "Pharma Bro" Martin Shkreli should convince Judge Arthur Engoron to impose a lifetime real estate ban on Donald Trump.
In a letter to Judge Engoron, state attorney Colleen Faherty cited Tuesday's decision in the Shkreli case to justify the NY AG's request to ban the former president from the New York real estate industry for life.
According to Faherty, New York State Executive Law 63(12) -- which was used in the NY AG's lawsuits against both Trump and Shkreli -- gives the court the ability to "issue a permanent and plenary ban in a particular industry."
"63(12) is the Swiss Army knife of the AG's Office," said Tristan Snell, a former lawyer with the New York attorney General's office who used the law to sue Trump over the now-defunct real estate seminar called Trump University. "If you don't have laws like this in place, that you basically allow lies and misrepresentations to be endemic."
A final decision in Trump's civil fraud case is expected later this month.