News Summary
A New York appeals court has reduced the civil fraud penalty against Donald Trump and his business from over $500 million, while upholding the fraud findings. The judges exhibited divided opinions on the penalty’s severity. Despite the reduction, the verdict confirms that Trump and his sons engaged in fraudulent practices. Attorney General Letitia James plans to appeal for higher monetary sanctions, setting the stage for a potential showdown in New York’s highest court. The case raises significant implications for business practices in New York.
New York – A New York appeals court has reduced a civil fraud penalty against former President Donald Trump and his family business from over $500 million while upholding the court’s findings of business fraud. The ruling, made by a five-judge panel of the First Judicial Department of the New York Supreme Court’s Appellate Division, marks a significant development in a long-running legal battle initiated by the state Attorney General Letitia James.
The court’s ruling followed a previous judgment by trial judge Arthur Engoron, who had ordered Trump to pay approximately $454 million in penalties due to inflated valuations of real estate assets, which had ballooned to over $500 million with accrued interest since the case began in February 2024. The panel’s decision highlights a stark divide among the judges regarding the nature and severity of the financial penalties, with one judge expressing concerns that the amount imposed was excessive and potentially unconstitutional under the Eighth Amendment.
While the financial penalty has been reduced, the appeals court has confirmed the underlying findings that Trump and his two adult sons engaged in fraudulent business practices by inflating asset values, a pivotal component of James’s case. Despite the reduction in financial penalties, James celebrated the court’s affirmation of fraud findings and expressed her intent to appeal to New York’s highest court to seek reinstatement of the larger monetary judgment.
The appeals court opinion revealed a lack of consensus among its judges, with some indicating they believed James had the authority to pursue the case against Trump but advocating for a new trial instead of the steep penalties initially imposed. This divergence among judges suggests the potential for continued legal disputes and appeals, which may further complicate the outcome of the case.
Trump’s legal representatives claimed the court’s ruling as a “resounding victory,” framing it within the context of a politically motivated attack against the former president. The appeals court’s decision, with its varied opinions and no clear majority, indicates that the legal issues surrounding this case are far from settled.
In the aftermath of the ruling, both Trump and his son, Eric Trump, celebrated what they termed a victory after enduring extensive litigation. Trump took to social media to declare the ruling a “total victory,” dismissing the legal challenges as part of a “Political Witch Hunt.” In addition to the financial penalties, the court also approved non-monetary sanctions against Trump and his business associates, aiming to impose restrictions and ensure compliance with business regulations moving forward.
This appeals court ruling has now set the stage for a potential showdown in New York’s highest court if James follows through with her promise to appeal. With appeals on the horizon, both sides remain prepared for what could be an extended legal confrontation as they navigate the complexities of this case. The outcome may not only affect Trump and his business dealings but could also have broader implications for business practices within New York’s commercial landscape.
As the case unfolds, it is essential to keep an eye on developments in the legal proceedings, which may bring further scrutiny and public attention to the alleged fraud by Trump and his family business. With the court’s rulings still resonating, the implications for Trump, James, and the broader real estate industry in New York remain significant.
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Additional Resources
- The New York Times
- Wikipedia: Donald Trump
- MSNBC
- Google Search: Trump fraud case
- CNBC
- Encyclopedia Britannica: Trump Organization
- ABC News
- Google News: Trump fraud appeal
- Axios
- Google Scholar: Trump fraud case
- The Washington Post
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
