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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Deutsche Bank made money from Trump, defense emphasizes

Defense attorney Jesus Suarez, in his direct examination of Deutsche Bank managing director Rosemary Vrablic, emphasized that Deutsche Bank was eager for Trump's business and made money from the loans they offered him.

"Your family is in the top 10 revenue generating names of Asset and Wealth Management now and he is thrilled with how it's grown," Vrablic wrote in a 2014 email to Ivanka Trump, referring to Vrablic's boss at Deutsche Bank.

That same year, Vrablic estimated that the bank made more than $6.8 million in fees from the Trump Organization.

Vrablic described her role as an intermediary between lenders at the bank and Ivanka Trump, both hunting for deals within the bank and courting the Trumps for increased business.

"Existing customers are the best source of additional customers," Vrablic said about the importance of Trump's business, given his connections in real estate and his wealthy family.


Bank was concerned DC hotel deal could publicize loan terms

Deutsche Bank managing director Rosemary Vrablic expressed concern about the public nature of Donald Trump's 2012 acquisition of the Old Post Office building in Washington, D.C., fearing the deal might publicize the favorable loan terms offered by the bank, according to evidence presented at trial.

"Will our terms and conditions with you be made public? Not a credit issue, but we want to be prepared if 'other clients' see it and ask for the same deal," Vrablic wrote in a 2013 email shown at trial.

The Trump Organization won the bidding process with the federal government in 2012 for the property, and Deutsche Bank loaned the firm the money for the renovation of the decrepit building.

"We won! We're very very excited!" Ivanka Trump wrote in a 2012 email to Vrablic.

Vrablic, concerned about the loan terms being publicized, said, "We would not talk about that," regarding the importance of keeping the terms private from other high-net-worth clients.

Vrablic could not recall how the loan term details were protected, but she confirmed that Deutsche Bank made $3.3 million from their loan to the Trump Organization related to the property.


Scrutiny over Trump's presidency prompted bank to halt relationship

Deutsche Bank decided to stop doing new business with Donald Trump due to the "increased exposure" and "scrutiny" related to his being elected president, according to testimony from Deutsche Bank managing director Rosemary Vrablic.

"It was an unprecedented situation to have a customer who was going to become president of the United States," Vrablic said.

By the time Trump was elected, the bank had made three profitable loans to Trump, making a projected $6.8 million in revenue from Trump in 2014. Vrablic confirmed that by July 2015, Trump had $31 million in cash deposits with the bank, and his associated entities stored $86 million in cash deposits.

However, the scrutiny of Trump's presidency prompted the bank to decide not to increase its exposure, including declining to offer Trump a loan for his golf course in Turnberry, Scotland.

"He was president of the United States -- going to become president of the United States -- and the bank's position was they did not want to increase its exposure at that time," Vrablic testified.


Deutsche Bank courted Trump for more business, referrals

Deutsche Bank executives courted Donald Trump to attract more business and referrals, viewing the former president as an opportunity to sell services to his family members and other high-net-worth individuals, according to the testimony of former Deutsche Bank managing director Rosemary Vrablic.

"Given the circles this family travels in, we expect to be introduced to the wealthiest people on the planet," Vrablic wrote to colleagues while courting Trump in the early 2010s, according to materials entered into evidence.

Recruiting Trump stemmed from a 2007 effort in the bank to develop a broader commercial real estate financing division for their high-net-worth individuals.

"He would have fit the category of the entrepreneur and investor with a successful track record," Vrablic testified on the stand regarding Trump's profile.

After being introduced to Donald Trump Jr. through Ivanka Trump's now-husband Jared Kushner, Vrablic began pursuing Donald Trump's business.

"We are whale hunting ... Haven't seen him yet. Also maybe Dad will convert like Ivanka did," Vrablic wrote in a 2011 email to a colleague.

"It is a term used when there is a very high-net-worth individual who is a prospect," Vrablic said in explaining why she referred to Trump as a "whale."

Once Trump was on board, leadership from the bank personally courted Trump to do more business with the bank and to connect them to other potential clients. The former CEO of the bank personally met with Trump with the express goal of gaining more deposits from Trump and leveraging Trump's relationships.

CEO Anshu Jain "thought that if Mr. Trump wanted to, there could be additional leverage provided among his world," Vrablic testified.

The effort appeared to work, as the bank made over $3 million in revenue from Trump in 2013, up from only $13,000 in 2011.


'President Trump makes you relevant,' attorney scolds Cohen

Defense attorney Alina Habba's cross-examination of former Trump attorney Michael Cohen featured frequent objections, cross talk and nonresponsive or argumentative answers that often breached customary courtroom decorum.

"You didn't ask me a yes-or-no question," Cohen scolded Habba at one point. "Yes I did," Habba shot back.

Cohen at times resisted answering questions, either objecting to them or insisting he did not understand them, while Habba paced the floor, blaring her questions into a hand-held microphone as Trump observed from the defense table.

"President Trump makes you relevant," Habba chastised Cohen. "If you didn't work for President Trump you wouldn't make most of your income today."

Cohen eventually conceded that he makes his living because of his prior relationship with Trump.

"Outside of your two podcasts, your merchandise and your books, is there any other form of income in your life?" Habba asked. "No," Cohen answered.

Habba's cross-examination concluded with a pointed question meant to question Cohen's motive for cooperating with the attorney general's investigation.

"Did you ever ask President Trump to pardon you while he was in the White House?" Habba asked.

"No," Cohen said.

"And he didn't pardon you?" she asked.

"No," Cohen replied.