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
Court adjourned for the day, with Trump on deck for Monday
Judge Engoron adjourned court until Monday, when the state plans to call former President Trump to the stand.
"We will reconvene on Monday at 10 a.m., and the first witness will be...?" Engoron asked state attorney Andrew Amer.
"The only witness will be Donald J. Trump," Amer said.
Eric Trump pressed on Mar-a-Lago valuation
Eric Trump has stepped down from the witness stand after facing an hour of questions from state attorney Andrew Amer.
Amer concluded his questioning by directly asking Eric Trump about the $2 million severance agreement between the Trump Organization and its former CFO, Allen Weisselberg.
"Did you participate in the business agreement to enter into this business decision with Mr. Weisselberg?" Amer asked.
"Yes," Eric Trump said.
"Did your father direct you to enter into this agreement with Mr. Weisselberg?" Amer asked.
"No, he did not," Eric Trump replied. He reiterated, "I did this agreement with Mr. Weisselberg."
Pressed on the value of Trump's Mar-A-Lago property, Eric Trump denied knowing that the club was valued for tax purposes as a commercial property used as a social club.
"It is very clear that Mar-a-Lago is not a club, it is a private residence. I don't see anything wrong with that. 100 percent," Eric Trump said.
Previous testimony and documents in evidence demonstrated that despite the property being restricted by deed to club usage, Donald Trump continued to overvalue the property as if it could be sold as a private residence. Judge Engoron already found that the club was overvalued by 2,300%.
"Mar-a-Lago is a residence that could be sold to a private individual," Eric Trump insisted.
Eric Trump testifies that he signed financial certifications
Eric Trump said that he signed three financial certifications to lenders that relied on his father's statements of financial condition, which are at the heart of the attorney general's case.
"I certified something I believed was accurate. My lawyers told me was accurate, and our financial people told me was accurate," Eric Trump said.
While Eric Trump did not certify his father's financial statements themselves, like his brother Donald Trump Jr., the attorney general has alleged that these certifications to lenders are similarly fraudulent.
Eric Trump said that he did not personally review the methodologies or supporting data for the financial statements themselves, instead relying on lawyers and accountants to verify the documents for him.
"I wouldn't sign something that I thought was inaccurate," he said multiple times.
Trump lawyer broaches mistrial over unproven report of bias
Eric Trump has resumed his testimony this morning.
Before he took the stand, Donald Trump's attorney Chris Kise said that the defense team is considering requesting the mistrial on the basis of a Breitbart report alleging bias from Judge Engoron's law clerk.
"I think the defense will have to give serious consideration to seeking a mistrial," Kise said, initially referencing a vague media report that "some random individual" filed a complaint on Oct. 3 alleging "accusations of partisan political activity" by the judge's clerk.
"It's not information, it's an allegation," Judge Engoron initially responded. "I don't know what you are talking about, and I will respond later."
A state attorney argued that Kise was arguing a "frivolous position" and requested specifics about the news report Kise cited.
"I'm not the internet person. I want to say it is on Breitbart maybe. It's on a news outlet," Kise said, prompting laughter from the gallery.
"This idea that somebody notified me ... is absolutely untrue. OK? Absolutely untrue," Engoron responded. "I will let everybody in the room decide what they think about Breitbart."
"It's a shame you descended to this level," Engoron added.
A court spokesperson subsequently described the report as "not a serious complaint."
Michael Cohen to return to witness stand
Former Trump attorney Michael Cohen is set to face a grueling day of cross examination, as defense lawyers attempt to discredit him after his potentially damaging testimony yesterday.
Calm and confident when answering questions from a state lawyer, Cohen dealt a blow to his former boss early in his testimony yesterday when he said he "reverse engineered" Trump's financial statements to "achieve the number" Trump wanted, inflating the values of assets such as Trump Park Avenue, Trump World Tower, and the Miss Universe Pageant to achieve Trump's desired figure -- though his testimony was notably devoid of notes, communications, or draft financials to support his claims.
Trump's lawyer Alina Habba hammered at Cohen's inconsistencies during the first hour of cross-examination, confronting Cohen with his past guilty pleas and history of false testimony. A disbarred lawyer, Cohen's answers grew combative at times, often responding to questions with "objection" or "asked and answered."
Trump said in a Truth Social post this morning that he plans to attend court for a second day in a row. In a social media post overnight, he described Cohen's testimony yesterday as a "complete and total disaster."
New York Attorney General Letitia James offered a contrasting opinion of Cohen's testimony in a video statement posted to social media.
"Donald Trump lives in a fantasy land. He directed those around him to lie and scheme to make his fantasy a reality," James said.