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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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.


Defense assails judge after he tells them to speed up questioning

Only 15 minutes into what is expected to be a three-hour cross-examination, Judge Arthur Engoron snapped at defense lawyer Jesus Suarez for asking redundant questions.

"I see why this is going to take two or three hours. Some questions become three or four more questions," Engoron said, interrupting the cross-examination to request that Suarez shorten his questions.

That prompted Trump lawyer Chris Kise to criticize Engoron for placing an unfair standard on the defense team.

"You never give them speeches. You never limit their questions," Kise said about Engoron's approach to the attorney general's legal team. "I think it's unfair."

Kise stressed that the cross-examination of the state's sole expert witness is particularly important since his testimony is likely to play into the judge's calculation of Trump's potential fine.

"This witness is the only witness they have that even hints ... about ill-gotten gains," Kise said.

Engoron, however, refused to back down.

"I stand by my rulings and statements," the judge said.


Trump firm 'in compliance' but under 'enhanced monitoring'

Donald Trump agreed to "enhanced monitoring" of the Trump Organization's finances after the company's independent monitor flagged cash transfers of roughly $40 million over the last 10 months.

Former judge Barbara Jones, the independent monitor requested by the New York attorney general in the case, wrote in a letter to Judge Arthur Engoron that she had identified three separate cash transfers of more than $5 million, totaling approximately $40 million. Jones said the transfers included $29 million in tax payments and roughly $10 million for insurance premiums.

"We have discussed with Defendants why these transactions were not previously disclosed, and I have now clarified (and Defendants have agreed) that all transfers of assets out of the Trust exceeding $5 million must be reported," Jones wrote.

Jones also requested information related to an intercompany loan and flagged the delayed disclosure of tax returns for six of Trump's entities, which defendants acknowledged as their mistake.

"Defendants continue to cooperate with me and are generally in compliance with the Court's orders, and have committed to ensure that all required information, including tax information and cash transfers, are promptly disclosed to the Monitor," Jones wrote.

Addressing a report she issued in August about incomplete financial disclosures by the Trump Organization, Jones added that the Trump Organization took additional steps to remedy and disclose the issue.

"By taking these steps I believe Defendants have resolved the issues identified in the August Report, subject to ongoing monitoring," Jones wrote.