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


0

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.


Trump Jr. pressed about departure of ex-CFO

Donald Trump Jr. struggled to answer questions when pressed about why former Trump Organization CFO Allen Weisselberg departed the family's firm.

"Because some legal issues he got himself into," Trump Jr. said, declining to offer specifics about Weisselberg's guilty plea on tax evasion charges last year.

Previously giving lengthy answers to questions about his background and even smiling with the judge, Trump Jr. appeared tense on the witness stand as he answered questions about Weisselberg.

"The specific event was he was indicted," Trump Jr. said.

He added that when began working for the Trump Organization as an executive vice president in the 2010s, Weisselberg outranked him. Trump Jr. would seek Weisselberg's approval for certain business decisions such as refinancing loans.

"Who is above you in your role as an executive vice president in the Trump Organization?" state attorney Colleen Faherty asked.

"Obviously I would have reported to my father in that period of time … people like Allen Weisselberg would have still been senior to me," Trump Jr. said of that time period.

Trump Jr. said he gained more responsibility in 2016 when his father became president and he was named a trustee of his father's revocable trust. He said that he, Weisselberg and his brother Eric Trump became a kind of triumvirate running the Trump Organization.

"We stopped reporting to my father on decisions involving the business," Trump Jr. said.

That relationship broke down once Weisselberg got himself into "legal issues," Trump Jr. said. He testified that he could not recall the circumstances of Weisselberg's exit, including the multimillion-dollar severance deal that Weisselberg received, which Weisselberg faced questions about during his own testimony earlier this month.

"I have no knowledge of the specifics of how it happened. He is no longer working at the Trump Organization," Trump Jr. said of the former CFO.