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Trump civil fraud case: Judge fines Trump $354 million, says frauds 'shock the conscience'

PHOTO: Former President Donald Trump sits in New York State Supreme Court during his civil fraud trial, on Jan. 11, 2024, in New York.
21:24
Michael M. Santiago/Getty Images, FILE
Donald Trump ordered to pay $354 million fine in civil fraud trial
By Peter Charalambous, Aaron Katersky
Last Updated: October 16, 2023, 6:56 PM

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."

MORE: After his latest court ruling, Trump could now face $540 million in fines. Does he have the money to pay?

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.

Top headlines:

  • Judge fines Trump $354 million
  • Trump, ignoring judge's warning, tells court he's an 'innocent man'
  • Trump, after testifying, fined $10,000 for violating gag order
Here's how the news is developing. All times Eastern.

Pinned
Feb 16, 2024 9:07 PM

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


Pinned
Nov 14, 2023 7:49 PM

Expert says property valuations can be 'wildly different'

Taking the witness stand as an expert witness for the defense, accountant Jason Flemmons offered testimony in support of Donald Trump's approach to valuing his Mar-a-Lago property, which has been the subject of debate throughout the seven weeks of the trial.

In his summary judgment decision, Judge Engoron found that Trump overvalued the estate by at least 2,300% because the Palm Beach County Assessor appraised the property's market value between $18 and $27.6 million after Trump signed a deed that restricted its use to a social club, potentially limiting its resale value as a residence but ensuring a tax cut. Trump, in contrast, listed its value in his financial statement between $426 million and $612 million, and during his appearances in court and online he has repeatedly attacked Engoron's finding.

Flemmons argued that Trump's approach to valuing his assets gave him latitude to consider his property's future revenue streams. That approach, according to Flemmons, could result in "wildly different values" between the numbers listed on a personal financial statement and a tax assessed value.

"Tax assessed values are typically on the lower end of the spectrum," Flemmons said, while Engoron looked on attentively.

PHOTO: The Mar-a-Lago Club, home of former US President Donald Trump, is seen on April 3, 2023 in Palm Beach, Fla.
Giorgio Viera/AFP via Getty Images
The Mar-a-Lago Club, home of former US President Donald Trump, is seen on April 3, 2023 in Palm Beach, Fla.
Giorgio Viera/AFP via Getty Images

While he never mentioned Mar-a-Lago by name, Flemmons was asked by defense attorney Jesus Suarez about a hypothetical property assessed at $18 million but valued closer to $500 million using a comparable sales approach -- the same approach used to value Mar-a-Lago.

"It would not be unusual to have a value in the hundreds of million using projected cash receipts," Flemmons said.

Engoron then turned his chair toward Flemmons and began asking his own questions.

"I am trying to get to the order of magnitude we are talking about here," Engoron said. "What is the highest value you have ever seen legitimately placed on such a property?"

Flemmons could not provide a specific example to answer Engoron's question but reiterated that a massive discrepancy could be appropriate.


Oct 16, 2023 6:56 PM

Michael Cohen could testify next Monday, judge says

The earliest possible day that former Trump attorney Michael Cohen could testify is next Monday, Judge Engoron said.

Cohen, who for years was Trump's so-called "fixer," said an ongoing medical issue had forced him to postpone his testimony, which was originally scheduled to begin tomorrow.

Judge Engoron noted that he has not yet received Cohen's "all-important doctor's note," but that he hopes to receive it sometime today.

Trump attorney Chris Kise criticized the delayed appearance of Cohen, who he described as central to the state's case -- noting that Cohen has continued to post to social media despite his medical issue.

"He does continue to be active in his pursuit of my client," Kise said. "He does not appear to be that infirm."


Oct 16, 2023 5:04 PM

Trump wanted his net worth to 'go up,' exec says he was told

Trump Organization executive Patrick Birney testified that then-CFO Allen Weisselberg told him that Trump wanted to see his net worth "go up."

"Did Allen Weisselberg ever tell you that Mr. Trump wanted his net worth on the statement of financial condition to go up?" state attorney Eric Haren asked Birney.

"Yes," Birney said. "I think that happened in Allen Weisselberg's office."

Birney said the meeting with Weisselberg happened sometime between 2017 and 2019, but could recall a specific date.

The testimony prompted a quick objection from Trump attorney Chris Kise, who pushed back on claims from the New York attorney general that there was a conspiracy between Trump Organization employees to inflate Trump’s net worth.

"They are mixing hearsay and the conspiracy," Kise argued.

Judge Engoron asked both parties to submit two-page memos by tomorrow about whether the statements from Birney are hearsay.

Trump's lawyers declined to cross-examine Birney, who stepped down from the stand, clearing the way for Trump Hotels chief accounting officer Mark Hawthorn to testify.


Oct 16, 2023 2:23 PM

Judge says he'll clarify upcoming schedule

On the heels of former Trump attorney Michael Cohen's decision to delay his testimony, Judge Engoron said that "the schedule for the rest of this week is somewhat up in the air."

The judge, however, promised to offer clarity about the trial schedule later today.

Engoron also acknowledged the anticipated return on Tuesday of former President Trump to the courtroom.

When the judge, while waiting for a witness to enter, joked about arguing before an empty chair, defense attorney Chris Kise replied, "It won't be empty tomorrow."

Engoron responded with a smile, saying "So I hear."



Oct 16, 2023 12:11 PM

Michael Cohen delays testimony as trial enters Week 3

The civil fraud trial of former President Trump, his adult sons, and Trump Organization executives enters its third week with a notable schedule change.

Trump's former lawyer and so-called "fixer" Michael Cohen, who was initially scheduled to begin his testimony on Tuesday, has delayed his court appearance due to a preexisting medical condition.

"I look forward to testifying and correcting the record as to the multiple misstatements and responses by previous witnesses who stated … 'I don't recall.' Unfortunately for them, I do," Cohen told ABC News on Saturday.

PHOTO: Former Donald Trump lawyer and loyalist Michael Cohen walks out of a Manhattan courthouse after testifying before a grand jury on March 13, 2023 in New York.
Spencer Platt/Getty Images
Former Donald Trump lawyer and loyalist Michael Cohen walks out of a Manhattan courthouse after testifying before a grand jury on March 13, 2023 in New York.
Spencer Platt/Getty Images

Trump is expected to attend multiple days of the trial beginning on Tuesday, according to sources familiar with his plans.

In the meantime, Trump Organization executive Patrick Birney is expected to conclude his testimony this morning.

Birney is scheduled to be followed on the stand by Mark Hawthorn, the chief accounting officer at Trump Hotels.


Nov 14, 2023 7:49 PM

Expert says property valuations can be 'wildly different'

Taking the witness stand as an expert witness for the defense, accountant Jason Flemmons offered testimony in support of Donald Trump's approach to valuing his Mar-a-Lago property, which has been the subject of debate throughout the seven weeks of the trial.

In his summary judgment decision, Judge Engoron found that Trump overvalued the estate by at least 2,300% because the Palm Beach County Assessor appraised the property's market value between $18 and $27.6 million after Trump signed a deed that restricted its use to a social club, potentially limiting its resale value as a residence but ensuring a tax cut. Trump, in contrast, listed its value in his financial statement between $426 million and $612 million, and during his appearances in court and online he has repeatedly attacked Engoron's finding.

Flemmons argued that Trump's approach to valuing his assets gave him latitude to consider his property's future revenue streams. That approach, according to Flemmons, could result in "wildly different values" between the numbers listed on a personal financial statement and a tax assessed value.

"Tax assessed values are typically on the lower end of the spectrum," Flemmons said, while Engoron looked on attentively.

PHOTO: The Mar-a-Lago Club, home of former US President Donald Trump, is seen on April 3, 2023 in Palm Beach, Fla.
Giorgio Viera/AFP via Getty Images
The Mar-a-Lago Club, home of former US President Donald Trump, is seen on April 3, 2023 in Palm Beach, Fla.
Giorgio Viera/AFP via Getty Images

While he never mentioned Mar-a-Lago by name, Flemmons was asked by defense attorney Jesus Suarez about a hypothetical property assessed at $18 million but valued closer to $500 million using a comparable sales approach -- the same approach used to value Mar-a-Lago.

"It would not be unusual to have a value in the hundreds of million using projected cash receipts," Flemmons said.

Engoron then turned his chair toward Flemmons and began asking his own questions.

"I am trying to get to the order of magnitude we are talking about here," Engoron said. "What is the highest value you have ever seen legitimately placed on such a property?"

Flemmons could not provide a specific example to answer Engoron's question but reiterated that a massive discrepancy could be appropriate.


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