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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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 attorney blasts motion to limit defense witnesses

Trump attorney Chris Kise grew visibly frustrated as today's proceedings moved on to arguments over the state's motion to preclude testimony from four of the defense's expert witnesses that the state argues are no longer relevant to the case.

After state attorney Andrew Amer argued in favor of the motion, Kise suggested he belongs in totalitarian Russia.

"I suggest Mr. Amer check the internet," Kise said. "Vladmir Putin has some openings. That is where he belongs."

Describing the comment as "completely uncalled for," Judge Engoron suggested that Kise apologize to Amer.

"I am not going to apologize," Kise said, though he promised to refrain from "further pejoratives."


Judge to take defense's motion to end case early 'under advisement'

Judge Arthur Engoron did not immediately rule on the defense's motion for a directed verdict that would end the trial early.

Instead, the judge simply said the arguments were being "taken under advisement."

Wrapping up his argument for a directed verdict, defense attorney Chris Kise channeled some of the rhetoric of his client, praising Donald Trump for helping the community and "reshaping the skyline of New York."

"What building has the attorney general built in this community?" Kise asked.


Trial is a 'documents case,' state lawyer says

State attorney Kevin Wallace, arguing against the defense's motion for a directed verdict to end the trial early, reiterated that the state's case relies on documents that they say incriminate Donald Trump and his adult sons.

"This is a documents case," Wallace said. "Each of the three defendants signed documents saying they were responsible for the fair presentation of the statements."

While the defendants all testified that they relied on accountants, Wallace said by way of analogy that it's like the defense saying that using an accountant absolves an individual of filing false tax returns.

"I am liable for that fraudulence," Wallace said. "I am not relieved of my responsibility because I handed off to an accountant."


Trump Organization executive says CFO had final say

Trump Organization executive Patrick Birney testified that CFO Allen Weisselberg and controller Jeffrey McConney had the final say on Trump's financial documents when he worked under them.

"I was not the final decision maker," said Birney, who was an assistant vice president at the time.

Birney joined the Trump Organization in 2015, a few years after he graduated from the University of Michigan. He began helping with Trump's statement of financial condition in 2016 and eventually took over preparing the vital financial document, though he acknowledged in court that he initially lacked some basic knowledge about accounting and finance.

Asked if he ever had valued a property using a capitalization rate, he replied, "I don't think so."

Birney said he would often turn to McConney if he needed specific documents, and that he reviewed drafts of the statement with Weisselberg.

"He would review drafts with me that I would provide him," Birney said. He later added, "Allen Weisselberg had the authority to approve everything."