New York appeals court overturns Trump’s US$500m civil fraud penalty
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The news: A New York state appeals court on Thursday (Friday AEST) overturned the USD464 million ($722.9 million) civil fraud penalty imposed on US President Donald Trump and the Trump Organization, ruling the fine was unconstitutionally excessive.
The context: The penalty had been ordered in February 2024 by Justice Arthur Engoron after a three-month non-jury trial, where he found Trump had fraudulently inflated asset values to obtain favourable mortgage and insurance rates.
The five-judge appellate panel upheld the finding that Trump broke the law but issued a divided decision with three separate opinions, ultimately vacating the financial judgment.
While the appeals court vacated the penalty, it let the fraud finding stand. The case can move for further proceedings before New York’s highest appeals curt, giving Trump another chance to challenge the finding that he was a fraudster.
The case was brought by New York Attorney General Letitia James in September 2022. And with Trump now in office, the Justice Department has launched federal investigations into James and her office, including a civil rights probe into the conduct of the Trump lawsuit.
The numbers: Trump had been ordered to pay USD454.2 million plus interest, nearly 98% of which he was personally liable for but had not been required to pay while the appeal was pending.
Last year, Trump secured a USD175 million bond pending appeal. James claimed Trump’s net worth had been inflated by as much as USD3.6 billion in his financial statements.
