The New York Supreme Court's Appellate Division ruled that while Trump was found liable for fraud, the monetary penalty imposed was excessive and possibly unconstitutional.
**Appeals Court Overturns Trump’s $500M Fraud Penalty**
**Appeals Court Overturns Trump’s $500M Fraud Penalty**
An appeals court decision in New York has annulled President Trump’s $500 million civil fraud penalty, while confirming his liability for wrongdoing.
In a significant legal development, the New York Supreme Court’s Appellate Division has thrown out a substantial civil fraud penalty originally imposed on former President Donald Trump. The court’s ruling, released Thursday, overturned a $500 million fine that Judge Arthur Engoron had ordered Trump to pay for grossly inflating the values of his properties for favorable loan terms.
While the court upheld Trump’s liability for fraud, it described the penalty as "excessive" and likely in violation of constitutional protections against disproportionate punishment. In its extensive ruling, the judges stated, “While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the state.” Initially, Trump was suggested to owe $355 million based on the trial's findings, but with accumulated interest, the total exceeded $500 million.
Reacting to the decision on his social media platform, Truth Social, Trump proclaimed the ruling a “total victory,” emphasizing that it underscored what he termed a “political witch hunt.” He credited the court with the "courage" to overturn an unlawful decision that he argued was detrimental to business in New York.
Meanwhile, the New York Attorney General's Office, which initiated the fraud case, also framed the outcome as advantageous since the court confirmed Trump’s fraud liability and did not dismiss other non-financial penalties, such as barring him from company directorship for three years. The Attorney General expressed plans to appeal the nullification of the financial penalty to the state’s highest court, asserting, “It should not be lost to history: yet another court has ruled that the president violated the law.”
The appellate court's ruling contained notable divisions among the five judges, with diverse opinions on the merits of the lawsuit initiated by Attorney General Letitia James, who accused Trump and his sons of systemic fraud. Although several judges supported James’ legal action, there was disagreement regarding the case's merits, warranting the call for a potential new trial with a narrower scope.
This appellate ruling arrives nearly a year after the panel's oral arguments. While many judges appeared skeptical of the civil fraud claims, the decision ultimately reflects an ongoing judicial struggle surrounding a significant fraud case involving a former president.
Trump's son, Eric Trump, celebrated this judicial outcome, stating, “After 5 years of hell, justice prevailed!” Experts are already speculating how this case will evolve, particularly with the upcoming appeal by the Attorney General’s Office. Legal analysts, such as Will Thomas from the University of Michigan, warned that this intriguing legal saga will likely continue, emphasizing that clarity on the ultimate outcome in James v. Trump could still be a long way off.
