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
Expert says property valuations can be 'wildly different'
Taking the witness stand as an expert witness for the defense, accountant Jason Flemmons offered testimony in support of Donald Trump's approach to valuing his Mar-a-Lago property, which has been the subject of debate throughout the seven weeks of the trial.
In his summary judgment decision, Judge Engoron found that Trump overvalued the estate by at least 2,300% because the Palm Beach County Assessor appraised the property's market value between $18 and $27.6 million after Trump signed a deed that restricted its use to a social club, potentially limiting its resale value as a residence but ensuring a tax cut. Trump, in contrast, listed its value in his financial statement between $426 million and $612 million, and during his appearances in court and online he has repeatedly attacked Engoron's finding.
Flemmons argued that Trump's approach to valuing his assets gave him latitude to consider his property's future revenue streams. That approach, according to Flemmons, could result in "wildly different values" between the numbers listed on a personal financial statement and a tax assessed value.
"Tax assessed values are typically on the lower end of the spectrum," Flemmons said, while Engoron looked on attentively.
While he never mentioned Mar-a-Lago by name, Flemmons was asked by defense attorney Jesus Suarez about a hypothetical property assessed at $18 million but valued closer to $500 million using a comparable sales approach -- the same approach used to value Mar-a-Lago.
"It would not be unusual to have a value in the hundreds of million using projected cash receipts," Flemmons said.
Engoron then turned his chair toward Flemmons and began asking his own questions.
"I am trying to get to the order of magnitude we are talking about here," Engoron said. "What is the highest value you have ever seen legitimately placed on such a property?"
Flemmons could not provide a specific example to answer Engoron's question but reiterated that a massive discrepancy could be appropriate.
House Republicans call for probe of Cohen after his testimony
House Intelligence Committee Chair Rep. Michael Turner and House GOP Conference Chair Rep. Elise Stefanik have requested that the Department of Justice investigate Michael Cohen for perjury following his testimony in the trial last month.
During his trial testimony, Cohen said that he lied to the House Permanent Select Committee on Intelligence in 2019 when he said that Donald Trump and Allen Weisselberg did not ask him to inflate Trump's personal statement.
"So, you lied under oath in February of 2019? Is that your testimony?" defense attorney Alina Habba asked in court.
"Yes," Cohen responded.
Shown his 2019 testimony in court, Cohen subsequently reversed himself and said that his 2019 testimony was truthful, explaining the contradiction by clarifying that Trump speaks like a "mob boss" and that he indirectly asked for his statement to be inflated.
In a letter to Attorney General Merrick Garland sent today, Stefanik and Turner requested that the Department of Justice open an investigation into Cohen potentially committing perjury.
"That Mr. Cohen was willing to openly and brazenly state at trial that he lied to Congress on this specific issue is startling," they wrote. "His willingness to make such a statement alone should necessitate an investigation."
Last week, Stefanik sent a separate judicial complaint to the New York State Commission on Judicial Conduct related to the conduct of the judge overseeing Trump's trial. In a statement to ABC News, a court representative said in response that the judge's actions "speak for themselves."
Judge stops expert's testimony following state's objection
Donald Trump's lawyers abruptly stopped the testimony of their first expert witness -- who was expected to testify for a full day or two -- after Judge Engoron limited the topic areas of his testimony.
Steven Witkoff, a real estate investor and longtime friend of Trump's, was brought into court by the defense team to testify that Trump's Doral golf club was undervalued in Trump's financial statements.
But Judge Engoron sustained an objection from the state barring any testimony about the valuation of Doral, significantly limiting Witkoff's testimony and appearing to hamper the defense strategy proposed by Trump's attorney Chris Kise.
Kise argued that the inaccuracies in Trump's statement of financial condition can cut both ways: Even if some properties were overvalued, other properties like Doral were significantly undervalued and balanced out the statement, according to Kise.
"It is highly, extraordinarily relevant if there are assets that are undervalued substantially on those same statements," Kise said. "They can't look at this one-sided."
State attorney Andrew Amer fiercely rebutted that argument, telling Engoron he should not take the defense's position that the inconsistencies "come out in the wash."
That argument appeared to convince Engoron, who said that overvaluations would not "insulate" a false valuation. He promised to sustain any objection that related to the value of Doral -- an approach Kise described as "lunacy."
"The reader of the financial statement has the right to know whether each particular number was accurate," Engoron said. "They are looking for accuracy."
Judge doesn't address post Trump shared calling for his arrest
As court got underway this morning, Judge Engoron -- who has said he has received harassing messages regarding his role in the trial -- did not address Trump's sharing of a post on his Truth Social platform calling for his arrest.
The former president yesterday shared a user's post calling for the "citizens arrest" of Engoron and Attorney General Letitia James "for blatant election interference and harassment."
When he expanded the case's limited gag order earlier this month, Engoron said that his chambers had received hundreds of "harassing and threatening phone calls, voicemails, emails, letters, and packages" since the start of the trial.
The gag order does not prohibit attacks against Engoron himself or the New York attorney general.
Weisselberg concedes Trump's triplex is smaller than valuation
Former Trump Organization CFO Allen Weisselberg testified that Trump's triplex apartment in Trump Tower is 10,996 square feet -- which is a third the size that Trump claimed on financial documents.
In October 1994, Trump signed a document that certified his penthouse triplex is 10,996 square feet, but his statements of financial condition for several years beginning in 2012 listed the apartment as 30,000 square feet.
An attorney with the New York attorney general's office showed the page with Trump's signature to Weisselberg, who appeared to struggle to explain the discrepancy.
"It was always in my mind a de minimis asset on the statement of financial condition," Weisselberg said. "I never even thought about the apartment."
Louis Solomon of the attorney general's office confronted Weisselberg with emails from Forbes magazine seeking clarity about the apartment's size, as well as a letter signed by Weisselberg certifying the 30,000 square foot figure to the Trump Organization's then-accountant, Mazars USA.
Weisselberg offered a lengthy take on the discrepancy, prompting Judge Arthur Engoron to intercede.
"Your role is to answer the questions, not to give speeches. Please just answer the questions," Engoron said.
"Forbes was right, the triplex was actually only 10,996, right?" Solomon asked.
"Right," Weisselberg finally conceded.
"I've been through quite a bit the last two years," Weisselberg said at one point during the morning's questioning. The former CFO moved to Florida following three months in jail after he pleaded guilty last year to criminal fraud charges and subsequently testified against the Trump Organization.