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
Donald Trump Jr. takes the stand
Donald Trump Jr. has taken the stand, where he will be the first of the former president's children to testify.
Before taking the stand, Trump Jr. sat while news photographers snapped pictures.
"I should've worn makeup," he quipped.
Ivanka Trump appeals ruling requiring her to testify
One week ahead of her planned testimony, Ivanka Trump has appealed Judge Engoron's decision to require her to testify in person at the Trump Organization's fraud trial.
Ivanka Trump's lawyer Bennet Moskowitz asked an appellate court to decide whether Engoron has jurisdiction to compel her testimony and whether the trial subpoenas issued by the New York attorney general were properly served.
Ivanka Trump, who is not a defendant in the case, is currently scheduled to testify next Wednesday as the final witness in the attorney general's case before the defense presents its case.
Donald Trump Jr. arrives at courthouse
Donald Trump Jr. has arrived at the New York State Supreme Courthouse with his attorney.
Unlike his father and his brother Eric Trump -- who have visited the courtroom to watch the proceedings – Donald Trump Jr. has not stepped foot inside the courthouse for the trial until today.
A Trump Organization executive vice president, Trump Jr. is scheduled to testify in the case this afternoon.
Defense presses state's expert on his analysis
Defense lawyer Jesus Suarez spent the first hour of his cross-examination working to cast doubt on expert Michiel McCarty's analysis, which found that Trump defrauded lenders out of $168 million in interest.
"Who created the universe of documents for you to review? It was the New York attorney general, right?" Suarez said before launching into a rapid-fire succession of questions regarding which lenders McCarty had spoken to in the course of his analysis.
"Did you ever interview anyone from Deutsche Bank?" Suarez asked.
"No," McCarty said.
"Did you ever interview anyone from Ladder Capital?" Suarez asked.
"No," McCarty repeated.
"Did you ever interview anyone from Mazars," Suarez asked.
"No," McCarty responded.
"Did you ever interview anyone from the Trump Organization?" Suarez asked.
"No," McCarty said again.
State to question defense expert on potential fine
State attorney Kevin Wallace is expected to complete his cross-examination of the defense's expert witness Robert Unell, who yesterday provided the most direct challenge to the state's analysis that found that Donald Trump's misstatements cost his lenders $168 million in lost interest.
New York Attorney General Letitia James is expected to use that lost interest analysis to justify part of the fine she wants to levy against Trump -- also known as a disgorgement -- for his allegedly ill-gotten gains.
Unell testified yesterday that he found the lost-interest analysis conducted by the state's expert Michiel McCarty was inaccurate based on real-world market conditions, including the interest rates used by commercial real estate lenders who are "living and breathing these deals daily."
"I have not seen anything to indicate that was an accurate interest rate," Unell said about the interest rates in the state's analysis.
Judge Arthur Engoron twice interjected during Unell's testimony to suggest that Trump still cost his lenders money, referring back to his partial summary judgment in which he said, "The less collateral for a loan, the riskier it is, and a first principal of loan accounting is that as risk rises, so do interest rates."