A New York appeals court just delivered a major victory for President Donald Trump by tossing out the enormous civil fraud penalty he was facing.
This ruling comes about seven months after Trump returned to the Oval Office. A panel of five judges in New York’s Appellate Division decided that the penalty, which had grown to more than $500 million with interest, was “excessive.”
The original case goes back to February 2024, when Judge Arthur Engoron ruled that Trump had inflated the value of his financial statements and ordered him to pay $355 million. With interest and additional penalties for Trump Organization executives, including his sons Eric and Donald Jr., the total amount climbed to roughly $527 million.
In their opinion, Judges Dianne T. Renwick and Peter H. Moulton wrote that while the court’s restrictions on Trump’s business practices were reasonable, forcing him to hand over nearly half a billion dollars to the state of New York amounted to an excessive fine under the Eighth Amendment.
Engoron had also barred Trump’s sons from holding leadership positions in corporations for a few years. Those restrictions were put on pause during the appeals process, and Trump avoided paying the fine by posting a $175 million bond.
Interestingly, the appeals court took almost 11 months after hearing arguments to release its decision a delay far longer than usual. The court left open the possibility that the state’s highest court, the Court of Appeals, could weigh in if further appeals are filed.
New York Attorney General Letitia James, who filed the case, has consistently argued that Trump engaged in “lying, cheating, and staggering fraud.” Trump, meanwhile, has denied all wrongdoing, calling the case politically motivated. He even described it as a “fraud on me,” claiming Democrats James and Engoron were using the courts against him.
The dispute has now expanded into new territory. Trump’s Justice Department has subpoenaed James for records, suggesting they’re investigating whether her actions violated Trump’s civil rights. James’s lawyer, Abbe D. Lowell, has responded by calling that move part of the president’s “political retribution campaign.”
The ruling is a big legal win for Trump, but it doesn’t close the door entirely future appeals could bring the issue back to the table.
0 Comments