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 expected back in court
Former President Trump is expected to be in court today for the second day in a row.
Lawyers for Trump have also suggested the former president plans to attend court during the testimony of his former lawyer Michael Cohen when Cohen eventually takes the stand.
Cohen delayed his testimony, which was originally scheduled to begin yesterday, due to a medical issue.
"[Trump] might have significant conflicts on 1st, 2nd, 3rd, and 8th" of November, Trump attorney Chris Kise told Judge Engoron regarding Trump's schedule in relation to Cohen's testimony.
"We are still operating on the assumption of Monday at the earliest" for Cohen to begin his testimony, Engoron said, adding that Cohen had submitted a "fairly extensive doctor's note."
Trump attorney Alina Habba, citing a conflict, requested Cohen's testimony begin on Tuesday at the earliest.
State attorney Kevin Wallace said he would confer with Cohen on timing and provide a schedule update this week.
Appraiser set to conclude testimony
Real estate executive Doug Larson, whose cross-examination began yesterday afternoon, is scheduled to complete his testimony this morning.
Larson, who testified yesterday that phone calls with him that were referenced in Trump Organization financial documents did not actually take place, faced hours of cross-examination yesterday by defense attorney Lazaro Fields.
Fields grilled Larson on discrepancies in the final drafts of appraisals --- a process that Larson acknowledged was less of a "science" than an "art."
Jack Weisselberg, an executive at the real estate investment firm Ladder Capital who is also the son of Trump Organization ex-CFO Allen Weisselberg, is scheduled to testify next about his work refinancing a loan of Trump's 40 Wall Street property.
"I suggest we call him Jack," said Judge Arthur Engoron, anticipating confusion regarding the actions of both Weisselbergs.
Trump's empire 'built on lies,' AG says after court ends for the day
After court adjourned for the day, New York Attorney General Letitia James offered one of her firmest repudiations of the former president's claims.
"He can call me names, he can engage in distractions, but at the end of the day ... his entire empire was built on nothing but lies and on sinking sand," James told reporters outside the lower Manhattan courthouse.
Trump has frequently targeted James in his comments during courtroom breaks, criticizing her efforts as politically motivated and pushing an unfounded theory that the case against him is part of a plot of interfere in the 2024 election.
"This is an attorney general ... that went out and campaigned on 'I will get Trump,'" Trump said before entering court this morning, repeating attacks that he's made on social media.
James fired back that her team has repeatedly demonstrated that Trump committed fraud, both in the first two weeks of the trial, as well as in Judge Arthur Engoron's pretrial ruling about Trump's fraudulent financial statements.
"He will again attempt to distract each and every one of you, attempt to raise his voice and scream," James told reporters. "But at the end of the day, justice will be served, and I'm confident that victory will be mine."
Trump leaves court early
Former President Trump did not return to court after the mid-afternoon break, leaving his attorneys alone at counsel table for the cross-examination of professional appraiser Doug Larson.
The former president departed from the lower Manhattan courthouse in his motorcade.
Trump is scheduled to sit for a deposition today related to a civil lawsuit brought by former FBI agent Peter Strzok and former FBI attorney Lisa Page. Strzok filed suit against the Justice Department and the FBI in 2019, claiming his First Amendment rights were violated when he was wrongfully terminated the year before over private text messages with Page that reflected anti-Trump sentiments.
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.