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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New York AG moves to stop testimony from defense experts

Donald Trump's lawyers are scheduled to begin presenting the defense's case on Monday following the conclusion of the presentation of the New York attorney general's case -- but New York AG Letitia James is arguing that four of the defense's expert witnesses are no longer relevant.

In a filing made today, James argues that Judge Engoron's partial summary judgment decision and subsequent changes to the state's case have made make the testimony from the four experts irrelevant.

State lawyers plan to make an oral motion to preclude the expert testimony tomorrow, according to their filing.


'I don't recall' discussion of financial statements, Ivanka Trump says

State attorney Louis Solomon grew visibly frustrated with Ivanka Trump's limited recollections during an exchange about Donald Trump's Old Post Office building in Washington, D.C.

Solomon attempted to confront Ivanka Trump with a document that showed that the General Services Administration -- which ran the selection process for the renovation of the building -- raised concerns about Donald Trump's financial statements in 2011. New York Attorney General Letitia James, who says the statements contained fraudulent valuations, alleges that both Donald Trump and Ivanka Trump addressed those concerns during an in-person meeting with GSA officials.

"It was a general presentation. I don't recall with specificity any discussion of financial statements," Ivanka Trump said, prompting Solomon to throw his hands in the air.

"When I ask a question, she doesn't remember," an exasperated Solomon said. "The witness does have a recollection, your honor!"

"Would you like to clarify the situation?" Judge Engoron directly asked Ivanka Trump, who repeated the same description of the meeting.

"I recall one in-person meeting" about the "big picture" of the project, Ivanka Trump testified. She said recalled no discussion of "financial statements or anything granular like that."

Donald Trump's lawyers, meanwhile, have continued to object to Solomon asking questions about conduct from over a decade ago, which they say is akin to ancient history for a fast-moving real estate company.

"The GSA decision was made years before the statute of limitations," Donald Trump's lawyer Chris Kise argued, though Engoron overruled the objection.


'You are starting to sound like your client,' judge teases lawyer

Donald Trump is not in court today, but his lawyer is beginning to sound like the former president, according to a quip from Judge Arthur Engoron.

Describing the Trump Organization's renovation of the Old Post Office building in Washington, D.C., Trump's lawyer Chris Kise argued that the building was transformed from a "hulking relic" into a "world-class facility."

"You are starting to sound like your client," Engoron said, prompting some laughs from the gallery.


Ivanka Trump excused as lawyers debate statue of limitations

Ivanka Trump was removed from the courtroom for ten minutes while attorneys argued over whether the statute of limitations applied to the deals discussed during her testimony.

"These deals ... had requirements for updated financials year, after year, after year," Judge Arthur Engoron said. "To me, they are very much part of this case."

Donald Trump's lawyer argued that Ivanka Trump's conduct between 2011 and 2013 could not impact someone else recertifying the loans years later.

"It's theoretically impossible -- it's beyond implausible that some event that took place in 2016 would have changed the course of events in 2011, 2012, and 2013," Trump attorney Chris Kise said.

Judge Engoron appeared unconvinced by the arguments and allowed the testimony to continue.

"The ship has sailed," Engoron said.


Trump's closing argument in doubt after heated email exchange

Former President Donald Trump's plan to deliver part of his closing argument Thursday, as reported yesterday by ABC News, is now in doubt after he failed to meet a deadline to agree to limitations imposed by Judge Arthur Engoron.

According an email exchange between Engonon and defense counsel that was posted to the public docket Wednesday, Engoron said that Trump would have to follow the case's limited gag order, and that he would not be allowed to "impugn" the New York attorney general or her staff -- limitations that Trump attorney Chris Kise rejected, calling them "untenable."

"The limitations I am imposing, in my absolute discretion, are not subject to further debate. Take it or leave it," Engoron replied on Jan. 9, according to the email thread.

When Trump's lawyers missed the first deadline set by Engoron, the judge determined that Trump could not testify. Kise then responded that he did not see the deadline and requested that the closing arguments be postponed because of the death of Melania Trump's mother on Tuesday.

"I am sad to advise the Court that Mrs. Trump's mother passed away this evening. Because of the challenges presented by this deeply personal family matter, President Trump has asked that I request the Court postpone the date for closing argument," Kise wrote yesterday.

Engoron promptly denied the request and said the closings would continue as planned.

"On balance, going forward makes the most sense. Please tell Mr. Trump that I am sorry," Engoron wrote.

Kise informed Engoron that Trump still planned to attend the closings and speak.

"Despite the fact that his Mother-in Law, who he was very close to, passed away late last night, President Trump will be speaking tomorrow," Kise said in an email this morning.

When Engoron asked for assurance that Trump agreed to his rules, Kise pushed back, writing, "You are not allowing President Trump, who has been wrongfully demeaned and belittled by an out of control, politically motivated Attorney General, to speak about the things that must be spoken about."

"I won't debate this yet again. Take it or leave it. Now or never. You have until noon, seven minutes from now. I WILL NOT GRANT ANY FURTHER EXTENSIONS," Engoron replied at 11:54 a.m.

After Kise failed to respond, Engoron emailed him at 12:12 p.m. that he assumed Trump would not be speaking and that their email exchange would be posted to the court's public docket.

Responding to the development, Trump's legal spokesperson, Alina Habba, said in a statement to ABC News: "Is anyone surprised anymore?"