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
Judge loses patience with state's questions
The testimony of Donald Trump’s former tax lawyer Sheri Dillon continued Friday morning after a hearing where Judge Arthur Engoron ordered Ivanka Trump to testify at the trial as early as next week.
State attorney Louis Solomon attempted to highlight development restrictions that Trump allegedly agreed to for two properties that appeared to contradict proposed conservation easements.
“Yes, it’s complicated. For the most part, it didn't matter,” Dillon testified, arguing that the restrictions would not impact Trump’s conservation easements.
After an hour of similar questions and responses, Engoron appeared to lose patience and briefly excused the witness from the stand.
“I feel we are two or three elements away from anything that is relevant,” Engoron said. “It seems to me this is becoming a game of gotcha.”
Ivanka Trump must testify at her father’s fraud trial
Ivanka Trump must appear to testify at her father’s fraud trial, Judge Arthur Engoron decided from the bench Friday morning.
“I want to see her in person. That is how we prefer testimony,” Engoron said after denying Ivanka Trump’s motion to quash the trial subpoenas she was served.
While Ivanka Trump was not in attendance at Friday's hearing, her lawyer Bennet Moskowitz argued that the state’s justification for bringing Ivanka to the courtroom “falls on its face.”
Characterizing the state’s argument as “a bridge too far,” Moskowitz reiterated that Ivanka neither lives nor has done business in New York since 2017.
State attorney Kevin Wallace defended the subpoenas by arguing Ivanka Trump was a former Trump Organization executive who was the main contact with lenders for Trump’s Washington D.C. Old Post Office hotel. Wallace added that Ivanka Trump still owns properties in New York and operates business here.
Ruling from the bench after a short break, Engoron found that the state presented sufficient evidence to prove that Ivanka does business in New York.
“Ms. Trump owns property in New York and has done business in New York,” he said.
Engoron added that her testimony should not be scheduled before next Wednesday to allow her lawyers to appeal his ruling.
“A trial is a search for the truth, and the law is entitled to every person’s evidence,” Engoron said.
Judge to hold hearing on Ivanka Trump subpoenas
Judge Engoron will hear arguments Friday morning about Ivanka Trump's efforts to quash three subpoenas related to her potential testimony at her father's civil trial.
In September, the New York attorney general's office attempted to compel Ivanka Trump to testify by sending subpoenas to three corporate entities related to her. Her lawyer, Bennet Moskowitz, filed a motion last week to quash the subpoenas, which he argued lacked jurisdiction.
Ivanka Trump was originally included in the attorney general's $250 million lawsuit, along with her father and brothers, before an appeals court dismissed her from the case in June because she was no longer part of the Trump Organization by 2016.
Trump overvalued LA golf course by $100M, evidence shows
Donald Trump, in 2014, valued his Los Angeles golf club at over $100 million more than the amount it was appraised at, according to evidence shown in court.
Trump's former tax attorney, Sheri Dillon, testified that when working on a conservation easement for the driving range at Trump National Golf Club in Los Angeles in 2014, she received an appraisal that valued the entire club at $107 million.
However, the spreadsheet used to create Trump's financial statements placed the value of the golf club at $213 million that same year, according to documents entered into evidence.
Shown the document during her testimony, Dillion said she was unfamiliar with it.
"I have never seen this document. I don't even know what this is," she said when she was shown the spreadsheet, which Trump Organization controller Jeffrey McConney previously testified he maintained.
When state attorney Louis Solomon attempted to highlight the alleged overvaluation, their exchange grew combative.
"We have the right to treat her as a hostile witness," Solomon said -- a request that was granted by Judge Engoron.
"Did you ever discuss with anyone at the Trump Organization the valuation of [the golf club]?" Solomon asked Dillon at one point.
"I don't recall. Over the years, I am sure it came up at some point," Dillon said, though she could not recall if she directly discussed it with then-Trump Organization CFO Allen Weisselberg.
Court was subsequently adjourned for the day, with Dillon's testimony scheduled to resume tomorrow morning.
Trump indicates he'll attend more days
Former President Trump took swipes at the attorney general and the judge overseeing his case during a break, calling the trial a "disgrace," and saying that he will return over the course of proceedings.
"I'll be seeing a lot of you," he told reporters, "because this is a horrible thing that's happening to this country."
He again claimed the civil lawsuit brought by AG Letitia James -- as well as the litany of other cases he faces -- are politically motivated.
"If I weren't leading in all the polls, or if I weren't running, I wouldn't have any of these cases," Trump said.