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
New York AG's senior counsel to question Trump
Senior Enforcement Counsel Kevin Wallace of the New York attorney general's office will lead the direct examination of Donald Trump when the former president takes the stand this morning.
Wallace led the depositions of Trump during the New York attorney general's investigation and also delivered the state's opening statement in the trial.
"The defendants were lying year after year," Wallace said in his opening statement.
A constant presence in court during the trial, Wallace joined the New York AG's office in 2018 after working in the private sector for 15 years.
Wallace and Trump sparred for hours during Trump's April deposition, according to a transcript of the deposition that was subsequently released by the AG's office.
"We're going to be here until midnight if your client answers every question with an eight-minute speech," Wallace remarked after one of Trump's lengthier answers.
Wallace tried to press Trump on spreadsheets that Wallace displayed during the deposition, promoting frequent objections from Trump's lawyers.
"Oh my God -- are you people capable of reading a spreadsheet?" an exasperated Wallace said after one objection from Trump's attorney Chris Kise.
Trump arrives at courthouse
Donald Trump's motorcade has arrived at the New York State Supreme Courthouse in lower Manhattan.
Court is scheduled to get underway at 10 a.m. ET, with Trump scheduled as the day's only witness.
Trump prepped for testimony with attorneys, say sources
Donald Trump, in New York, had a prep session with his lawyers Sunday ahead his testimony, sources tell ABC News.
Trump's mood during the session fluctuated between fits of anger regarding the case and being "in a good head space," according to sources.
The former president "can be a good witness if he stays focused," one source said.
Trump due in court to testify this morning
Former President Trump is due in court to begin his testimony in his $250 million civil fraud trial at 10 a.m. ET.
Hundreds of members of the news media are huddled outside the New York State Supreme Courthouse ahead of Trump's arrival, with some having waited overnight.
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."