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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Ivanka Trump appeals ruling requiring her to testify

One week ahead of her planned testimony, Ivanka Trump has appealed Judge Engoron's decision to require her to testify in person at the Trump Organization's fraud trial.

Ivanka Trump's lawyer Bennet Moskowitz asked an appellate court to decide whether Engoron has jurisdiction to compel her testimony and whether the trial subpoenas issued by the New York attorney general were properly served.

Ivanka Trump, who is not a defendant in the case, is currently scheduled to testify next Wednesday as the final witness in the attorney general's case before the defense presents its case.


Donald Trump Jr. arrives at courthouse

Donald Trump Jr. has arrived at the New York State Supreme Courthouse with his attorney.

Unlike his father and his brother Eric Trump -- who have visited the courtroom to watch the proceedings – Donald Trump Jr. has not stepped foot inside the courthouse for the trial until today.

A Trump Organization executive vice president, Trump Jr. is scheduled to testify in the case this afternoon.


Defense presses state's expert on his analysis

Defense lawyer Jesus Suarez spent the first hour of his cross-examination working to cast doubt on expert Michiel McCarty's analysis, which found that Trump defrauded lenders out of $168 million in interest.

"Who created the universe of documents for you to review? It was the New York attorney general, right?" Suarez said before launching into a rapid-fire succession of questions regarding which lenders McCarty had spoken to in the course of his analysis.

"Did you ever interview anyone from Deutsche Bank?" Suarez asked.

"No," McCarty said.

"Did you ever interview anyone from Ladder Capital?" Suarez asked.

"No," McCarty repeated.

"Did you ever interview anyone from Mazars," Suarez asked.

"No," McCarty responded.

"Did you ever interview anyone from the Trump Organization?" Suarez asked.

"No," McCarty said again.


Defense assails judge after he tells them to speed up questioning

Only 15 minutes into what is expected to be a three-hour cross-examination, Judge Arthur Engoron snapped at defense lawyer Jesus Suarez for asking redundant questions.

"I see why this is going to take two or three hours. Some questions become three or four more questions," Engoron said, interrupting the cross-examination to request that Suarez shorten his questions.

That prompted Trump lawyer Chris Kise to criticize Engoron for placing an unfair standard on the defense team.

"You never give them speeches. You never limit their questions," Kise said about Engoron's approach to the attorney general's legal team. "I think it's unfair."

Kise stressed that the cross-examination of the state's sole expert witness is particularly important since his testimony is likely to play into the judge's calculation of Trump's potential fine.

"This witness is the only witness they have that even hints ... about ill-gotten gains," Kise said.

Engoron, however, refused to back down.

"I stand by my rulings and statements," the judge 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?"