An appeals court has overturned a substantial civil fraud penalty against Donald Trump, while still holding him liable for fraud.
Appeals Court Dismisses Trump's $500 Million Civil Fraud Penalty
Appeals Court Dismisses Trump's $500 Million Civil Fraud Penalty
Court finds excessive penalty for inflated property values; Trump claims political bias.
The New York Supreme Court's Appellate Division has dismissed a $500 million civil fraud penalty initially imposed on former President Donald Trump, stemming from a previous ruling in a fraud case. The ruling, announced Thursday, revealed that although Trump is found liable for massively inflating the values of his properties to secure favorable loans, the hefty fine was deemed excessive and likely unconstitutional.
Originally, Judge Arthur Engoron ordered Trump to pay $355 million after declaring him liable for business fraud last year. This amount, when including interest, inflated to over $500 million. The appellate court's decision reflected concerns over the span and severity of the penalty; Judge Peter Moulton noted, "While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the state."
In response, Trump celebrated the decision on his social media platform, Truth Social, calling it a "total victory" and dismissing the case as a "Political Witch Hunt." He praised the court for correcting what he labeled an "unlawful and disgraceful Decision" that supposedly harmed New York businesses.
Conversely, the New York Attorney General's Office, which initiated the case, considers the ruling a partial win since it upheld Trump's liability for fraud. The office announced plans to appeal the decision regarding the financial penalties to the state's highest court. In their statement, they emphasized that the judges recognized the merits of the case, reaffirming that Trump, his organization, and two of his children were liable for fraudulent activities.
Importantly, while the financial penalties were dismissed, other sanctions imposed by Judge Engoron remain intact, including barring Trump from serving as a company director or securing bank loans in New York for three years. The appellate court's 323-page ruling noted diverse opinions among the justices, reflecting a division on the original lawsuit's merits.
Despite differing views, the judges unanimously agreed to annul the financial penalty, citing the need for finality. Judge Moulton asserted that the U.S. Constitution's Eighth Amendment prohibits excessive fines, stating, "This bench today unanimously derails the effort to destroy his business."
This ruling caps a complicated legal saga involving accusations that Trump misrepresented his wealth significantly, notably alleging that his Trump Tower penthouse was nearly three times its actual size. Following the appeals court decision, Eric Trump expressed optimism, declaring, “After 5 years of hell, justice prevailed!”
As the legal battle continues, the New York Attorney General’s Office emphasizes the importance of accountability, reminding the public that their case against the former president has merit, despite ongoing political controversies surrounding it.
Originally, Judge Arthur Engoron ordered Trump to pay $355 million after declaring him liable for business fraud last year. This amount, when including interest, inflated to over $500 million. The appellate court's decision reflected concerns over the span and severity of the penalty; Judge Peter Moulton noted, "While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the state."
In response, Trump celebrated the decision on his social media platform, Truth Social, calling it a "total victory" and dismissing the case as a "Political Witch Hunt." He praised the court for correcting what he labeled an "unlawful and disgraceful Decision" that supposedly harmed New York businesses.
Conversely, the New York Attorney General's Office, which initiated the case, considers the ruling a partial win since it upheld Trump's liability for fraud. The office announced plans to appeal the decision regarding the financial penalties to the state's highest court. In their statement, they emphasized that the judges recognized the merits of the case, reaffirming that Trump, his organization, and two of his children were liable for fraudulent activities.
Importantly, while the financial penalties were dismissed, other sanctions imposed by Judge Engoron remain intact, including barring Trump from serving as a company director or securing bank loans in New York for three years. The appellate court's 323-page ruling noted diverse opinions among the justices, reflecting a division on the original lawsuit's merits.
Despite differing views, the judges unanimously agreed to annul the financial penalty, citing the need for finality. Judge Moulton asserted that the U.S. Constitution's Eighth Amendment prohibits excessive fines, stating, "This bench today unanimously derails the effort to destroy his business."
This ruling caps a complicated legal saga involving accusations that Trump misrepresented his wealth significantly, notably alleging that his Trump Tower penthouse was nearly three times its actual size. Following the appeals court decision, Eric Trump expressed optimism, declaring, “After 5 years of hell, justice prevailed!”
As the legal battle continues, the New York Attorney General’s Office emphasizes the importance of accountability, reminding the public that their case against the former president has merit, despite ongoing political controversies surrounding it.
