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.


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


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Judge says he'll cap questioning at an hour and a half

Trump attorney Jesus Suarez, in his cross-examination of longtime Trump accountant Donald Bender, is attempting to ask Bender about each year's compilation of Trump's statement of financial condition.

In response, facing the possibility of hours of repetitive questions, Judge Engoron said he would limit Suarez to an hour and a half of cross-examination.

Defense lawyer Clifford Robert is also expected to question Bender.


Cross-examination of ex-accountant resumes

The defense's cross-examination of longtime Trump accountant Donald Bender has resumed.

New York Attorney General Letitia James is attending court today, but Eric Trump of the Trump Organization is absent from the gallery.

When Donald Trump attended over the first three days of the trial, the gallery was packed -- but without him in attendance, it's now roughly half full.


Without Trump in attendance, trial resumes for Day 4

The trial resumes this morning for its first full day of action without the presence of former President Trump, who returned to Florida yesterday after attending the trial's first three days.

With 26 witnesses yet to testify for the state, today is likely to provide an indication of the trial's duration, which Judge Engoron scheduled to take three months.

Longtime Trump accountant Donald Bender of Mazars USA is back on the stand for more cross-examination from defense lawyer Jesus Suarez, who has been walking Bender though years of financial statements in an attempt to paint him as asleep of the wheel while handling Trump's accounting.

If Bender gets off the stand today, the state will next call longtime Trump Organization comptroller Jeffrey McConney, who is a defendant in the case itself.


Defense presses ex-accountant on evaluation of assets

Attorneys for the defense team declined to cross-examine Cameron Harris after the former Trump accountant completed his testimony. However they reserved the right to call him back to the stand later.

Instead, they spent the last hour of court Wednesday continuing their cross-examination of former Mazars USA accountant Donald Bender, who handled Trump's account prior to Harris.

After the defense highlighted Bender's inconsistent statements about Mazars' use of specialists to evaluate assets, Bender seemed to struggle to articulate how Mazars provided accounting expertise.

Defense attorney Jesus Suarez told Judge Engoron that he plans to continue his cross-examination of Bender through Thursday afternoon, though the defense promised to "streamline" their questions after the judge complained about the timing.

Court was then adjourned for the day.


Judge denies defense's 4th request to end trial

The second day of testimony from the defense's expert accounting witness prompted an argument between attorneys for the two sides over the basic question of what the case is about -- leading defense lawyers to make their fourth unsuccessful request for a directed verdict to end the trial.

The arguments came toward the end of direct testimony by accounting expert defense Eli Bartov, who asserted the New York attorney general's case lacked merit because there was no evidence of any fraud on Trump's statements of financial condition, and that any errors about the values of Trump's properties were unintentional and therefore immaterial.

When the defense attempted to question Bartov about those values, state attorneys objected -- prompting defense attorney Christopher Kise to leap from his seat.

"If they don't call anyone to dispute our values, how have they proven their case?" Kise said.

Judge Arthur Engoron, in a pretrial ruling, already decided that Trump conducted a decade's worth of business using fraudulent financial statements, and state attorney Kevin Wallace suggested that Bartov's findings do not change those findings.

"You can't use false statements in business. That's what the summary judgment decision is all about. I think it is pretty much what the rest of this case is about," Engoron said in response to Kise's question.

Kise argued that if the attorney general doesn't prove what Trump's asset values should have been, the case is a "completely rudderless ship" that needs to be "moored to some sort of standard."

"You can't just say it's a misstatement because you feel like it," Kise argued.

"The standard is truth," Engoron responded.

The exchange prompted Trump's legal spokesperson, Alina Habba, to make the defense's fourth motion for a directed verdict, arguing that Engoron is "wasting our time" if he won't consider their expert testimony.

"They have not proven their case. They haven't," Habba said in her request for a directed verdict.

"Denied," Engoron said within seconds of the request, without hearing a response from lawyers for the New York attorney general.