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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Donald Trump's lawyers to move for directed verdict

A day after the New York attorney general rested her case, Donald Trump's lawyers are set to make a long-shot motion for a directed verdict in the trial.

In moving for a directed verdict, Trump's lawyers will ask Judge Arthur Engoron to end the case in favor of the defendants on the grounds that the New York attorney general failed to prove liability by a preponderance of the evidence.

The defense team requested a directed verdict earlier in the trial after they argued that Trump's former lawyer Michael Cohen perjured himself on the witness stand, but Judge Engoron resoundingly shot down the request.

"Absolutely denied," Engoron said when the defense made the request based on their claim that Cohen's evidence was unreliable.

"This case has evidence, credible or not, all over the place," said Engoron. "There's enough evidence to fill this courtroom."

If Engoron similarly denies today's motion, the defense team will begin presenting its case on Monday.


James touts state's case while Habba criticizes it

New York Attorney General Letitia James expressed confidence in her case while Trump attorney Alina Habba was equally dismissive, following the adjournment of court for the day.

Speaking to reporters outside the courthouse after she rested her case, James said that Ivanka Trump's friendly courtroom demeanor should not distract from the fact she engaged in fraud.

"She clearly was involved in negotiating and securing loans, favorable loans, for the benefit of the Trump Organization for Mr. Trump, and her brothers and for herself," James said of the former president's eldest daughter.

James praised Ivanka Trump testimony, saying it was cordial, disciplined, courteous, friendly, and nice. But the New York AG said it was also inconsistent.

"Her testimony raises questions with regard to its credibility," James said, later adding, "she was enriched, and clearly you cannot distance yourself from that fact."

Exiting court minutes after James, Habba slammed the state's effort, saying, "It is very clear that they have failed to prove the essential elements of the case."

Habba went so far as to recommend that the Manhattan district attorney prosecute former Trump attorney Michael Cohen for perjury and investigate how much money was "wasted by New York on a fake, phony case."

"We have spent three years doing this, based on testimony from Michael Cohen, who walked into that courtroom, and under oath and open court admitted that he perjured himself," Habba said referring the Cohen's earlier testimony.


New York attorney general rests her case

New York Attorney General Letitia James has rested her case against Donald Trump and his adult sons, state attorney Kevin Wallace told the court.

Judge Engoron confirmed that he will address motions for a directed verdict -- as well as motions regarding the defense's expert testimony -- during a half day of court tomorrow.

"We don't have any witnesses for tomorrow," Trump attorney Chris Kise told the judge.

The defense's case is expected to start in earnest on Monday.


Ivanka Trump steps down from the stand

Ivanka Trump stepped down from the witness stand following a day of testimony that saw the proceedings grow more heated as the afternoon wore on.

At one point toward the end of her cross-examination, Ivanka Trump delivered a lengthy response about working with Democratic lawmakers to execute the redevelopment of the Old Post Office in Washington, D.C., which became a Trump-owned hotel in 2016.

When defense attorney Jesus Suarez sought clarification that those lawmakers were Democrats, attorneys sitting at the state's counsel table appeared to laugh -- infuriating Suarez.

"I have to sit here and ask questions and listen to them laugh?" Suarez shouted, pointing at members of the attorney general's office and calling their conduct "insulting."

"They're sitting there laughing ... it's not funny," Suarez said.

Judge Engoron sought to quell tempers, framing the reaction as an expression of amusement regarding the repetition of Suarez's questioning.

"I think they are laughing … three, four, five times that these were congressional representatives," Engoron said. "Maybe they found the question funny."


Trump's business drew little scrutiny from bank, defense says

Deutsche Bank was a serious company in business with Donald Trump to make money, defense attorney Jesus Suarez said during his cross examination of former Deutsche Bank executive Nicholas Haigh.

At the height of its relationship with the Trump Organization the company loaned Trump over $378 million, and failed to commission independent appraisals of Trump's properties, Haigh acknowledged. While the bank listed lower estimates for the value of Trump's assets year after year, it continued to do business with Trump and his company.

"We ... the bank hadn't done all the due diligence one would do in the sense of the opinion of value you see in an appraisal," Haigh said, at one point agreeing with the defense's characterization that the bank's internal value services group conducted "sanity checks'' on the numbers.

The direct examination of Haigh by state attorney Kevin Wallace also left a central question about Deutsche Bank's activity unanswered.

In a letter to the court and in previous arguments, lawyers for the attorney general suggested that Haigh might have turned away Trump's business if he had known that Trump's assets were inflated in value.

"As this Court noted during summary judgment arguments, Mr. Haigh testified during OAG's investigation that he may not have authorized lending to the borrower if he had at that time been aware of the inflated asset values contained in Mr. Trump's SFCs [statements of financial condition]," a lawyer for the attorney general wrote to the court in a letter last week.

Wallace never directly posed the hypothetical to Haigh during his direct examination, leaving the question unresolved.

Court subsequently adjourned for the day, with Suarez telling the court he plans to continue his cross examination of Haigh through Thursday afternoon.