The New York Supreme Court's Appellate Division has overturned a massive civil fraud fine against Donald Trump, deeming it excessive. While Trump celebrated the decision as a victory, the New York Attorney General's Office prepares to challenge the ruling further.
Appeals Court Overturns Trump’s $500 Million Fraud Penalty While Upholding Liability
Appeals Court Overturns Trump’s $500 Million Fraud Penalty While Upholding Liability
In a significant ruling, an appeals court has dismissed a hefty $500 million penalty against Donald Trump in a civil fraud case, although his liability for fraud remains intact.
An appeals court has recently nullified a $500 million penalty imposed on former President Donald Trump following a civil fraud trial in New York. Initially ordered by Judge Arthur Engoron for significantly inflating property values to secure favorable loans, Trump’s penalty was considered excessive by the Appellate Division of the New York Supreme Court. The judges acknowledged Trump’s liability for the fraud but asserted that the financial punishment was disproportionate and likely contravened constitutional protections against excessive fines.
In the detailed ruling, which unfolded over a lengthy 323 pages, Judge Peter Moulton articulated that although the harm from Trump’s actions was evident, it did not warrant the colossal penalty levied against him. Trump's financial obligations had ballooned from an original court order for $355 million to over $500 million when accounting for interest, sparking debates on the fairness of such punitive measures.
Following the ruling, Trump took to his social media platform, Truth Social, proclaiming the decision as a "total victory" and criticizing the case as a politically motivated "witch hunt." He expressed gratitude for the court's stance in overturning what he termed an "unlawful" decision that negatively impacted businesses across New York State.
Meanwhile, the New York Attorney General's Office, which initiated the lawsuit, views the ruling as a partial victory. While the fines were dismissed, the court did not overturn crucial non-financial penalties, including a three-year ban on Trump serving as a company director or securing loans within the state. The office plans to appeal the overturning of the financial penalty to the state's highest court.
The divergent opinions among the five judges highlighted the complexities of the case. While some supported the Attorney General's actions and concluded they were lawful, others expressed doubt over the necessity of a full trial, advocating instead for a new, limited scope of inquiry. Judge Moulton underscored that American voters had already "rendered a verdict" regarding Trump’s political career and voiced concerns that the original ruling could jeopardize his business.
In September 2023, Judge Engoron deemed Trump liable for business fraud, indicating misrepresentations of wealth totaling hundreds of millions of dollars. Notably, Trump’s financial statements inaccurately inflated the size of his Trump Tower penthouse by nearly three-fold. As the legal battles continue, Trump asserts that the lawsuit orchestrated by Attorney General Letitia James, a Democrat, was driven by partisan politics rather than legitimate legal claims.
