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 Jr., arriving in court, met with chants of 'crime family'
Donald Trump Jr. and his defense lawyers arrived at the New York State Supreme Courthouse this morning to be met with a small crowd of protestors chanting "crime family."
Trump Jr. did not make a statement before entering the courthouse, but offered a brief response to a question about his expected testimony.
Asked what he plans on saying today on the stand, he replied, "We'll see what I'm asked."
New York Attorney General Letitia James arrived at court shortly after Trump Jr. and took a seat in the courtroom with her staff.
Donald Trump Jr. attends UFC event ahead of testimony
Donald Trump Jr. took in some ultimate fighting ahead of his scheduled return to the witness stand this morning.
Trump Jr. attended a UFC doubleheader at Madison Square Garden on Saturday night with his father, in addition to Tucker Carlson, Kid Rock, and UFC president Dana White.
"I legitimately can't think of a better squad to roll with," Trump Jr. posted on social media.
Earlier that day while speaking at a campaign rally in New Hampshire, Donald Trump appeared to joke about appointing White to a position in a potential future administration.
"He's a guy I'd like to make my Defense Chief. I wouldn't call him my defense chief. I'd call him my 'Offense Chief.' He'd be my Offense Chief," Trump said.
Defense to begin presenting its case
As Trump's legal team prepares to begin presenting its case this morning, defense attorney Alina Habba says responsibility for the financial statements that the New York attorney general says are fraudulent lies with Trump's external accounting firm.
Previewing the defense's case during an appearance on Fox's Sunday Morning Futures with Maria Bartiromo, Habba also said the banks that loaned money to the Trump Organization were responsible for conducting their own due diligence regarding Trump's financial statements.
The state rested its case last week in the sixth week of the trial. The defense has said they expect their case to wrap up by Dec. 15.
Habba also suggested that Donald Trump plans to file a motion seeking a mistrial.
While Habba declined to comment on alleged misconduct by Judge Arthur Engoron's clerk -- which she is prohibited from doing due to the limited gag order handed down by the judge -- she said the issue would be addressed in their mistrial motion "very soon."
"I actually can't tell you why, because I am gagged. I can tell you that we will be filing papers to address all of those issues," Habba said.
However, Habba downplayed the chance the motion would be favorably decided Engoron.
"The problem we have is the judge is the one who is going to make those decisions, and he has proven himself to be quite motivated by the other side," Habba said.
Court administrator responds to Stefanik's complaint
In response to Rep. Elise Stefanik's letter of complaint against Judge Engoron that she filed Friday with the New York State Commission on Judicial Conduct, a spokesperson for New York State Office of Court Administration has issued a statement.
"Judge Engoron's actions and rulings in this matter are all part of the public record and speak for themselves," said Office of Court Administration communications director Al Baker. "It is inappropriate to comment further."
Defense expert tells AG lawyer, 'You ought to be ashamed of yourself'
Donald Trump's accounting expert snapped at a lawyer for the New York attorney general after the lawyer suggested his opinion was bought by the defense team.
As accounting expert Eli Bartov was testifying about Trump's use of disclaimers in his financial statements, state attorney Kevin Wallace interjected, saying, "This is pure speculation from someone they hired to say whatever it is they want."
Still in the witness box, Bartov began yelling at Wallace about the comment as Trump sat watching a few feet away.
"You make up allegations that never existed," Bartov shouted. "I am here to tell the truth. You ought to be ashamed of yourself for talking like that."
Bartov, in his testimony, said that Trump's use of disclaimers functioned "just like the warning from the surgeon general on a box of cigarettes."
The accounting expert said that Trump's disclaimers clearly flagged to his lenders that they should conduct their own due diligence regarding the figures, rather than rely on them at face value. Witnesses from Deutsche Bank -- Trump's primary lender during the 2010s -- previously testified that they conducted due diligence and significantly undercut the valuations Trump provided in his financial statement when deciding to offer him loans.
"I never saw anything that is clearer than that," Bartov said about the language in Trump's disclaimer clause. "Even my nine-year-old granddaughter Emma would understand this language."
In his pretrial summary judgment ruling, Judge Engoron dismissed Trump's argument that disclaimer clauses protect him from allegations of fraud. While multiple defense witnesses have attempted to rebut Engoron's opinion about Trump's use of disclaimer clauses, the judge has signaled he stands by his opinion.
"My summary judgment is the law of the case on the legal effect of this paragraph or these sentences," Engoron said in response to Bartov's testimony, adding that the clauses "would not insulate the client."
Nevertheless, Trump attorney Chris Kise requested that Engoron reconsider his finding.
"I am fairly liberal in reconsidering my opinions," Engoron said before Bartov resumed his testimony.