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
Rep. Stefanik files complaint against Judge Engoron
Rep. Elise Stefanik of New York has filed a judicial complaint against Judge Arthur Engoron.
The letter, addressed to the New York State Commission on Judicial Conduct, largely concerns the judge's rulings in the case and his public statements, and is unlikely to impact the proceedings of the trial.
"Judge Engoron's bizarre and biased behavior is making New York's judicial system a laughingstock," Stefanik, a staunch Trump supporter, wrote.
The lengthy letter echoes some of Trump's attacks on the trial, criticizing Engoron's limited gag order in the case, the actions of his legal clerk, his summary judgment ruling, and his comments during Trump's testimony this week.
"Simply put, Judge Engoron has displayed a clear judicial bias against the defendant throughout the case, breaking several rules in the New York Code of Judicial Conduct," Stefanik wrote.
Court adjourned until Monday
Court has adjourned for the day, with the trial scheduled to resume Monday for the start of the defense's case.
The court will be closed Friday in observation of Veterans Day.
Donald Trump Jr. will return to the witness stand to testify as the defense's first witness on Monday, assuming the judge does not rule in favor of Trump's motion for a directed verdict to end the case early.
Judge denies NY AG's motion to quash 4 defense witnesses
Judge Engoron has denied a motion from the New York attorney general to preclude four expert witnesses from testifying for the defense when the defense presents it case starting on Monday.
The state had sought to preclude the four experts' testimony on the grounds that, following the testimony of the state's witnesses, the four defense witnesses were no longer relevant to the case.
"You've won the battle. We'll see if you win the war," Engoron told defense attorney Chris Kise -- though he warned Kise that he would cut off the witnesses if they try to debate facts already established in the case.
In making his ruling, Engoron reiterated his finding from his earlier summary judgment order that Donald Trump made at least ten internally contradictory claims in his statements of financial condition.
"You can't have a correct statement with these kinds of errors," Engoron said.
Kise told the court that Donald Trump Jr. will be the first witness to testify in the defense's case on Monday.
"Oh, I know him," Engoron deadpanned after the announcement.
It will mark Trump Jr.'s return to the witness box after the state put him on the stand last week.
Defense attorney apologizes for barb
Court has resumed after a lunch break, and Trump attorney Chris Kise appears to have had a change of heart regarding his earlier barb directed toward state attorney Andrew Amer.
Before lunch, Kise threw some shade at Amer during arguments over the state's motion to preclude testimony from four of the defense's expert witnesses.
Returning from court after the break, Kise took back his words and apologized.
"I am going to apologize to the court, I am going to apologize to Mr. Amer," Kise said.
"I appreciate it and accept the apology," Amer responded.
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.