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
Trump in attendance for accounting expert's testimony
Donald Trump is back in court as a spectator, marking the first time the former president has attended the proceeding in over a month.
Trump entered the courtroom alongside his legal spokesperson Alina Habba and his son Eric Trump, who canceled his testimony that was initially scheduled for yesterday. Notably absent from the courtroom is New York Attorney General Letitia James.
Previewing today's testimony from New York University accounting professor Eli Bartov, Trump said on his way into the courtroom that he has "one of the greatest experts in the country" taking the stand today.
"We did nothing wrong. There were no victims. The bank loves us," Trump said.
Donald Trump set to attend trial today
Donald Trump is set to return to his civil fraud trial as a spectator today, marking the first time the former president has attended the proceeding in over a month.
Trump has attended eight of the trial's 41 days, including when he testified as the last witness in the state's case on Nov. 6. He is scheduled to return to the stand as the final witness in the defense's case on Monday.
This morning, Trump's lawyers will call New York University professor Eli Bartov as their second-to-last witness.
Trump attorney Chris Kise cited Bartov's testimony in his opening statement as vital to proving that Trump fully complied with all accounting rules and regulations when he submitted his statements of financial condition, which underpin the attorney general's allegations in the case.
"The statements are ... the beginning, not the end, of a highly complex valuation process," Kise said.
Potential for violence justifies gag order, judge's lawyer argues
Judge Arthur Engoron's attorney argues in a new court filing that the willingness of Donald Trump's followers "to engage in violence to show their support" for Trump justifies the limited gag order in the former president's civil fraud trial.
Trump filed an Article 78 proceeding against Engoron earlier this month to remove the gag orders the judge imposed prohibiting him from commenting on the judge's staff, but a panel of judges vacated a temporary stay of the gag orders last week.
"It is undisputed that Mr. Trump has an inordinate ability to draw attention, fervor, and animosity to those he singles out for attention. Whether he seeks it or not, some of Mr. Trump's followers are willing to engage in violence to show their support," said Engoron's attorney Michael Suidzinski, an assistant deputy counsel with the New York State Office of Court Administration.
Engoron's attorney questioned Trump's need to speak about the judge's staff during the trial or his campaign, adding that the gag order still permits him to criticize Engoron, the attorney general, the case itself, witnesses, and the entire judicial process.
"It is unclear, however, how his ability to talk about Justice Engoron's court staff is necessary for his campaign when this country faces a number of issues more worthy of debate," Suidzinski wrote.
"Given the real and demonstrated likelihood of harm that could come to Justice Engoron's court staff if the gag orders were annulled, Justice Engoron's legitimate and justifiable interest in preventing such harm greatly outweighs the de minimis interference to Mr. Trump's rights," Suidzinski wrote.
Court is off today after Eric Trump's testimony is called off
Court is not in session today after the defense yesterday called off the testimony of Eric Trump, who was scheduled to be today's lone witness.
Donald Trump's legal spokesperson, Alina Habba, said that testimony from Eric Trump was no longer needed because the court has heard sufficient testimony from defense experts and Deutsche Bank executives.
Eric Trump, who took the stand in the state's case last month, was scheduled to testify for the defense today -- but defense lawyers abruptly called off his testimony yesterday in order to streamline their case, defense attorney Clifford Robert said in court yesterday.
"Although Eric Trump was certainly prepared to testify again, his testimony is no longer necessary. He has already testified fully and well in the case," Habba said.
In a social media post Tuesday night, Donald Trump said he directed Eric not to testify.
"I told my wonderful son, Eric, not to testify tomorrow at the RIGGED TRIAL," Trump wrote.
'We can all read,' judge chides defense attorney
Defense attorney Jesus Suarez spent the first hour of court walking former Deutsche Bank executive Nicholas Haigh through a year-by-year review of the bank's credit reports about Trump's loans.
Under questioning, Haigh has acknowledged that Deutsche Bank's analysis supported approving Trump's loans.
At the same time, Suarez' approach is testing Judge Arthur Engoron's patience.
"We can all read, so I don't know why we are spending so much time on this," Engoron said at one point, describing the testimony as "redundant" and "obvious."
Engoron also criticized Suarez for appearing to highlight the fact that Trump never defaulted on the loans themselves -- an issue that is uncontested by both sides in the case.