New York AG Seeks to Reinstate $527M Penalty Against Trump in Fraud Case
New York – New York Attorney General Letitia James is challenging a recent ruling that significantly reduced the financial penalty against Donald Trump in a civil fraud case, seeking to restore the original judgment of over $527 million. The appeal, filed with New York’s highest court, argues that an intermediate appellate court erred in deeming the initial penalty “excessive.”
The case stems from allegations that Trump, along with executives at his company, systematically inflated the value of his assets on financial statements to secure favorable loan terms and insurance rates. Judge Arthur Engoron initially ruled last year that James had proven a yearslong conspiracy to deceive financial institutions. He ordered trump to pay $355 million, representing what the judge considered “ill-gotten gains.” This amount increased to more than $527 million with the addition of interest by the time the Appellate Division reviewed the case.
while the five-judge Appellate Division panel acknowledged wrongdoing, it reduced the penalty, stating that the original amount wasn’t justified by the demonstrated harm. Two judges specifically wrote, “While harm certainly occured, it was not the cataclysmic harm that can justify a nearly half billion-dollar award.” James’ appeal contends that the appellate court misapplied the law and underestimated the extent of the fraud.
The outcome of this appeal could have significant financial repercussions for Trump, who is facing increasing legal and financial pressures. A reinstatement of the full penalty could force the sale of assets or other drastic measures to satisfy the judgment. The New York Court of Appeals will now consider the arguments from both sides, with a decision expected in the coming months.
