News Summary
An appeals court in New York has reversed a significant financial penalty against President Trump, initially set at $500 million for inflating property values. The judges ruled that while Trump was liable for fraud, the damages awarded were excessive and did not correspond to the alleged harm. Trump celebrated the decision as a victory on social media, although the Attorney General’s Office plans to appeal the ruling. Non-financial penalties remain in effect, indicating the ongoing legal challenges surrounding Trump’s business practices.
New York – An appeals court in New York has overturned a $500 million penalty imposed on President Donald Trump for allegedly inflating property values to secure favorable loans for the Trump Organization. The ruling was made by judges of the New York Supreme Court’s Appellate Division, who found the original financial penalty excessive and potentially in violation of constitutional protections against harsh punishment.
The initial penalty was set by Judge Arthur Engoron, who had ordered Trump to pay $355 million. With added interest, the amount ballooned to over $500 million. However, the appellate judges acknowledged that, although Trump was liable for fraud, the damages awarded were disproportionate to the harm inflicted. Judge Peter Moulton pointed out that while harm occurred, it did not reach a level that justified an award of such size.
Following the appellate court’s decision, Trump declared it a “total victory” on his social media platform, where he expressed his respect for the ruling. He emphasized that he was sorry for any negative impacts the original decision may have had on businesses within New York State. Moreover, he referred to the entire legal process as a “Political Witch Hunt.”
Despite the appellate court’s reversal of the financial penalty, the New York Attorney General’s Office has announced plans to appeal this ruling to the state’s highest court, the Court of Appeals. The Attorney General’s office reiterated that Trump, along with his company and two of his children, remains liable for the fraudulent activities. Additional non-financial penalties, such as a three-year ban on serving as a company director or obtaining loans from New York banks, will still be enforced.
The appellate court’s decision revealed divisions within the five-judge panel. While some justices expressed a desire for a new trial, others advocated for outright dismissal of the case. Moulton’s commentary reflected the belief that American voters had already passed judgment on Trump’s political career, amid concerns that the ruling could undermine the objective of dismantling his business empire.
The lengthy ruling was documented in a 323-page opinion that highlighted various positions taken by the justices involved. Trump’s accusations of deception revolved around his alleged inflation of property values and misrepresentation of wealth, a practice that has been described by the Attorney General as a systematic plan to defraud financial institutions.
Previously, the Attorney General maintained that the profits derived from the fraudulent activities warranted the imposition of the original penalties. Judge Engoron had noted instances where Trump allegedly fraudulently represented the dimensions of the Trump Tower penthouse and other property values involved in the case.
This case emerges from ongoing legal battles surrounding Trump’s business dealings and the implications of his wealth declarations. Over the years, Trump has consistently alleged that the legal actions taken against him are unwarranted and politically charged.
The outcome of the immediate appeal and any further judicial proceedings will likely continue to attract widespread attention due to the public figure involved and the significant financial implications for the Trump Organization.
Deeper Dive: News & Info About This Topic
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- The Washington Post
- Google News: Trump fraud appeal
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Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF 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.
