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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'Genius factor' can boost property value by billions, expert says

A defense expert in real estate valuation suggested that a developer's vision could add over a billion dollars of value to a vacant lot.

Frederick Chin, who was qualified as an expert in real estate valuation, argued that Donald Trump used the "as if" investment value of his properties, rather than their current "as is" market value. According to Chin, the "as if" valuation perspective allows a real estate developer to consider the long-term development plans of a property when determining its value.

For example, a vacant lot in the heart of New York City might have a market value of $500 million, according to Chin. A real estate developer who envisions a hotel on the property might see its investment value closer to $2 billion.

Judge Arthur Engoron, who frequently interjected into Chin's testimony, described the approach that resulted in a $1.5 billion difference in the value of a hypothetical vacant lot as a developer's "genius factor."


Trump wants to appeal gag order in his civil trial, again

Donald Trump’s lawyers are seeking to appeal last week’s decision reinstating the gag orders in the former president’s civil fraud trial.

New York’s Appellate Division First Department vacated a temporary stay of the gag orders last week, and Trump’s lawyers are now seeking expedited leave to appeal the decision to New York’s Court of Appeals – the highest court in the New York State system.

Trump’s lawyers requested their application be reviewed by Judge David Friedman, who initially lifted the gag order on Nov. 16 before his decision was vacated by a panel of judges.

“Without expedited review, Petitioners will continue to suffer irreparable injury daily, as they are silenced on matters implicating the appearance of bias and impropriety on the bench during a trial of immense stakes,” Trump’s lawyers wrote in a new filing Monday morning.

In an emergency application for leave to appeal, Trump’s lawyers argued the gag orders “silence the core political speech of the leading Presidential candidate … at the height of President Trump’s campaign.”

Repeating past arguments against the gag order, Trump’s lawyers said the gag orders prohibit necessary speech to highlight the actions of Judge Arthur Engoron’s clerk, which they argue amount to “demonstrable partisan bias on the bench.”

“At stake is a civil defendant’s ability to critique, without fear of reprisal, the court presiding over a bench trial historic both by virtue of the parties thereto and the Attorney General’s novel and open manipulation of the Executive Law to punish her political enemies,” Trump’s lawyers wrote.


Expert testimony leads off last full week of defense's case

Donald Trump's lawyers are scheduled to call three expert witnesses to begin the last full week of their case.

Defense lawyers first plan to call real estate valuation authority Frederick Chin, whose expert report, filed with the court, faults the New York attorney general for taking a "narrow and limited view" of the value of Trump's assets in her complaint against the former president.

Like other defense experts, Chin argues in his report that Trump fairly valued his assets and properly disclosed his valuation approach to his lenders.

After Chin testifies, Trump's lawyers plan to call two experts to testify about Trump's valuation of his Mar-a-Lago property, which has been the subject of bitter debate since the start of the trial. Judge Arthur Engoron, in his pretrial partial summary judgment, already decided that Trump overvalued the property by at least 2,300%, and the defense experts -- Lawrence Moens and John Shubin -- are expected to challenge the judge's findings.

Defense attorneys intend to complete their questioning of the three expert witnesses by Wednesday, when Eric Trump is expected to return to the witness stand.


Judge again denies request to subpoena independent monitor

Judge Engoron again denied a request from the defense to subpoena the Trump Organization's independent monitor for testimony.

Twice this week, Trump's attorneys unsuccessfully sought to call to the stand former judge Barbara Jones, the monitor appointed by Engoron to oversee the Trump Organization's finances after the New York attorney general accused the firm of fraud.

Trump attorney Chris Kise tried for a third time Friday.

"We should be entitled to the benefit of having Judge Jones here to respond to those questions about any ambiguities that might exist in her reports," Kise said.

State attorney Andrew Amer argued against the request, citing Jones' immunity as an agent of the court.

"Your request to subpoena Judge Jones is denied," Engoron said, describing the request as a "dangerous infringement on court immunity."

In her latest report issued to Engoron this week, Jones reported that the Trump Organization was "in compliance" but under "enhanced monitoring."

Court was subsequently adjourned for the day following Engoron's ruling.


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?"