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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Eric Trump testifies that he signed financial certifications

Eric Trump said that he signed three financial certifications to lenders that relied on his father's statements of financial condition, which are at the heart of the attorney general's case.

"I certified something I believed was accurate. My lawyers told me was accurate, and our financial people told me was accurate," Eric Trump said.

While Eric Trump did not certify his father's financial statements themselves, like his brother Donald Trump Jr., the attorney general has alleged that these certifications to lenders are similarly fraudulent.

Eric Trump said that he did not personally review the methodologies or supporting data for the financial statements themselves, instead relying on lawyers and accountants to verify the documents for him.

"I wouldn't sign something that I thought was inaccurate," he said multiple times.


Trump lawyer broaches mistrial over unproven report of bias

Eric Trump has resumed his testimony this morning.

Before he took the stand, Donald Trump's attorney Chris Kise said that the defense team is considering requesting the mistrial on the basis of a Breitbart report alleging bias from Judge Engoron's law clerk.

"I think the defense will have to give serious consideration to seeking a mistrial," Kise said, initially referencing a vague media report that "some random individual" filed a complaint on Oct. 3 alleging "accusations of partisan political activity" by the judge's clerk.

"It's not information, it's an allegation," Judge Engoron initially responded. "I don't know what you are talking about, and I will respond later."

A state attorney argued that Kise was arguing a "frivolous position" and requested specifics about the news report Kise cited.

"I'm not the internet person. I want to say it is on Breitbart maybe. It's on a news outlet," Kise said, prompting laughter from the gallery.

"This idea that somebody notified me ... is absolutely untrue. OK? Absolutely untrue," Engoron responded. "I will let everybody in the room decide what they think about Breitbart."

"It's a shame you descended to this level," Engoron added.

A court spokesperson subsequently described the report as "not a serious complaint."


NY AG claims Trump Jr., Eric Trump lied to enrich father

After a day of testimony in which tempers at times flared on all sides, Eric Trump will return to court this morning for what is expected to be his final day on the witness stand.

In a video statement posted to social media last night, New York Attorney General Letitia James suggested that Donald Trump Jr. and Eric Trump's testimony yesterday highlighted how they lied to help inflate their father's net worth.

Eric Trump was "intimately involved in lying about the values of properties ... to make his father appear richer," while Donald Trump Jr. "continued to lie" by certifying his father's financial statements despite being confronted with misstatements, James alleged.

"They pretend that they were not involved in their family's fraudulent business. But the facts tell a very different story," James said in the video.


Appeals courts rules that Ivanka Trump must testify

A New York appeals court has denied an emergency request from Ivanka Trump to stop her testimony at her father's civil fraud trial.

Trump's daughter, who is not a defendant in the case, was subpoenaed by the attorney general to testify.

She is currently scheduled to testify next week on Wednesday.


Trump financials cite phone calls that witness says didn't occur

Doug Larson's name appears across five years of Donald Trump's financial documents, according to records entered into evidence.

A longtime professional appraiser with the real estate firm Cushman & Wakefield, Larson was cited in Trump Organization documents as an expert at valuing properties like 40 Wall Street, Trump Tower, and an adjoining retail space called "Niketown." Spreadsheets entered as evidence explicitly reference multiple phone calls with Larson between 2013 and 2017.

When asked about these phone calls in court, Larson testified that no such conversations occurred.

"Is it fair to say that Mr. Trump valued Trump Tower at $526 million in conjunction with you?" state attorney Mark Ladov asked Larson.

"No, that is incorrect," Larson said.

"Were you aware that Mr. McConney was citing you as a valuation source in his work papers?" Ladov asked.

"No, I was not," replied Larson, who said he did not assist Trump Organization executives in valuing Trump Tower, Niketown, or 40 Wall Street, despite Trump's paperwork referencing him as a source.

Evidence presented by the state instead suggested that the valuations were determined using cherry-picked metrics from a generic email Larson sent clients.

"It's a way to get your name out to clients for potential work," Larson said about one such "email blast" that was used in a Trump Tower valuation.

Larson added that the valuations Trump Organization executives determined based on "consultation" with him used flawed methodologies, such as using capitalization rates related to office buildings to appraise the retail Niketown building.

"It doesn't make sense," Larson said about Niketown's $287 million valuation.

"It's inappropriate and inaccurate," Larson said about the Trump Organization relying on his name to support their valuations. "I should have been told, and appraisals should have been ordered."