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
Eric Trump clarifies testimony about email
Eric Trump clarified his earlier answer regarding his involvement in his father's statement of financial condition, in which he was asked if he recalled a 2013 email from then-Trump Organization controller Jeff McConney asking him for notes for the statement.
"I clearly understood I sent notes to Jeffrey McConney," Eric Trump testified.
"I don't think that it ever registered [that] it was for a personal statement of financial condition," he said.
Eric Trump acknowledges email about financial statement
Eric Trump responded angrily when a state attorney questioned his previous statement that he was unaware that information he provided was being used in his father's statement of financial condition.
"We're a major organization. A massive real estate organization," Eric Trump said, raising his voice, before acknowledging he was aware of his father's financial statements, which are at the center of the case.
State attorney Andrew Amer pressed Eric Trump about a 2013 email in which then-Trump Organization controller Jeff McConney told Eric Trump, "I'm working on the notes to Mr. Trump's annual financial statement..."
"Is it correct that when you received this email in August of 2013, you understood that your father had an annual financial statement and you understood that Mr. McConney was asking you for information to assist with notes for that financial statement?" Amer asked.
"Yes," Eric Trump said.
Judge is 'hurting my very good children,' Trump says
Former President Trump took to social media to criticize Judge Engoron after Donald Trump Jr. yielded the witness stand to his brother Eric.
"Engoron is a wacko who is having a great time endlessly sanctioning, fining, & pushing around 'TRUMP,' hurting my very good children, & working to damage & defame me," the former president wrote on Truth Social.
As he he left the courthouse following his testimony, Trump Jr. told reporters, "I think it went really well, if we were actually dealing with logic and reason."
He reiterated that he relied on the Trump Organization's accountants to put together the financial statements at issue, and that he was not responsible for their contents.
"Before even having a day in court, I'm apparantly guilty of fraud for relying on my accountants to do -- wait for it -- accounting," Trump Jr. said. "You pay experts millions of dollars to be experts, you sign off on what they give you, and you're liable?"
'I did not work' on financial statements, Eric Trump says
"Sorry to be brash," Eric Trump began a 2012 email to a board member of a North Carolina golf club that the Trump Organization intended to purchase, according to materials entered into evidence.
The board member had come to New York to review financial documents to be assured the Trump organization had the "financial wherewithal to purchase, renovate and operate the club," state attorney Andrew Amer said while questioning Eric Trump.
Amer contended that meant Eric Trump knew "the company had personal financials available to share with third parties," despite the former president's son testifying that "I don't want to speculate" what was being shared.
"I understood we had financials as a company. I was not personally aware of the statement of financial condition," Eric Trump said. "I did not work on the statement of financial condition. I've been very clear about that."
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?"