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
Donald Trump Jr. takes the stand
Donald Trump Jr. has taken the stand, where he will be the first of the former president's children to testify.
Before taking the stand, Trump Jr. sat while news photographers snapped pictures.
"I should've worn makeup," he quipped.
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.
Banker says Trump declined to share financials in Bills' bid
After claiming a net worth of $8 billion, Donald Trump declined to share his financial statements with bankers related to his $1 billion bid to purchase the Buffalo Bills football team in 2014, according to documents presented at trial and testimony from Morgan Stanley executive K. Don Cornwell.
Of the 86 parties contacted to potentially bid on the Bills, Trump was one of six parties to make a final bid, according to a Morgan Stanley document shown at trial.
However, when Morgan Stanley attempted a close review of Trump's bid, Trump declined to provide his financial statements.
"We feel it is premature to sign the consent release forms until such time as we know that Mr. Trump is the final bidder," then-Trump attorney Michael Cohen said in a 2014 email shown at trial.
During a management presentation with Bills' leadership, Trump instead handed out a Forbes magazine list to support his bid, according to Cornwell.
"He gave us handouts of the Forbes list of the top-paid entertainers," Cornwell said.
Trump eventually lost his bid to purchase the football team to billionaire Terry Pegula, who outbid Trump by $400 million.
During cross-examination, Cornwell acknowledged that a lawsuit Trump previously brought against the NFL, as well as his affiliation with casinos, also limited the likelihood of his success.
"You thought that President Trump had little chance of being approved by the NFL?" defense attorney Ivan Feris asked.
"Yes," Cornwell replied.
Trump's lawyers have argued that his bid to purchase the Bills -- which has featured prominently in the testimony of other witnesses -- is irrelevant to the conduct alleged in the attorney general's lawsuit.
"It is the defense position that none of this relates to a cause of action in this case," Feris said.