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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Attorney continues to press Eric Trump on financial statement

Eric Trump grew visibly irritated as he appeared to struggle with his testimony regarding his father's statement of financial condition.

Resisting state attorney Andrew Amer's efforts to show he was familiar with the document at the center of the case, he at times raised his voice and punctuated his short answers with phrases like "obviously," "clearly," and "as I previously testified." Other times he responded with lengthy equivocations, prompting Amer to exhort him to keep his answers to "yes or no."

"You don't have to give a speech about that," Judge Engoron implored Eric Trump at one point.

Amer repeatedly asked variations of the same question: Was Eric Trump aware of his father's statement of financial condition?

"This is not something I ever recall seeing or working on," Eric Trump said in one clip from his deposition that was played in court. "This is accounting, and that is not what I do on a daily basis."


Eric Trump appears to contradict deposition

After acknowledging in his testimony that he provided Trump Organization controller Jeffrey McConney with information for his father's statement of financial condition, Eric Trump was shown video from his own deposition where he appeared to contradict his testimony in court.

"I have no recollection of ever providing Jeff material to be used in a statement that I've ever seen," Eric Trump said in the deposition he gave state attorneys during their probe.

"I don't think it would have ever registered" what the material was for, Eric Trump said in court today, responding to his own statement during his deposition.


Eric Trump clarifies testimony about email

Eric Trump clarified his earlier answer regarding his involvement in his father's statement of financial condition, in which he was asked if he recalled a 2013 email from then-Trump Organization controller Jeff McConney asking him for notes for the statement.

"I clearly understood I sent notes to Jeffrey McConney," Eric Trump testified.

"I don't think that it ever registered [that] it was for a personal statement of financial condition," he said.


Eric Trump acknowledges email about financial statement

Eric Trump responded angrily when a state attorney questioned his previous statement that he was unaware that information he provided was being used in his father's statement of financial condition.

"We're a major organization. A massive real estate organization," Eric Trump said, raising his voice, before acknowledging he was aware of his father's financial statements, which are at the center of the case.

State attorney Andrew Amer pressed Eric Trump about a 2013 email in which then-Trump Organization controller Jeff McConney told Eric Trump, "I'm working on the notes to Mr. Trump's annual financial statement..."

"Is it correct that when you received this email in August of 2013, you understood that your father had an annual financial statement and you understood that Mr. McConney was asking you for information to assist with notes for that financial statement?" Amer asked.

"Yes," Eric Trump said.


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."