Appeals court throws out massive civil fraud penalty against Trump
New York Court Throws Out Massive Civil Fraud Penalty Against President Trump
By JENNIFER PELTZ and MICHAEL R. SISAK Associated Press
NEW YORK (AP) — In a significant turn of events, an appeals court has overturned the substantial civil fraud penalty levied against President Donald Trump in New York state’s lawsuit accusing him of inflating his wealth.
The ruling, issued by a panel of five judges in New York’s mid-level Appellate Division, deemed the penalty of over $515 million as “excessive.” This decision comes after Trump’s return to the White House seven months ago.
The original verdict, which would have had severe financial implications for Trump and his real estate business, was based on findings that he had manipulated financial statements provided to lenders and insurers, leading to fraud. Judge Arthur Engoron had ordered Trump to pay $355 million in penalties last year, which with interest, had escalated to over $515 million.
However, the appeals court found the disgorgement order to be a violation of the Eighth Amendment of the United States Constitution, terming it as an “excessive fine.” The court also dismissed the penalties imposed on other Trump Organization executives, including his sons Eric and Donald Jr., bringing the total penalty amount to over $527 million.
While the court upheld some of the punitive measures, such as barring Trump and his sons from corporate leadership roles for a few years, it nullified the financial penalty in its entirety. The door was left open for further appeals to the state’s highest court, the Court of Appeals.
New York Attorney General Letitia James, who initiated the lawsuit, accused Trump of engaging in “lying, cheating, and staggering fraud.” The case has been a focal point of contention between the two parties, with Trump vehemently denying any wrongdoing.
During the trial, Trump maintained his innocence, labeling the case as a “fraud” orchestrated against him. He has consistently alleged political motives behind the lawsuit and subsequent verdict, citing the Democratic affiliations of James and Engoron.
Trump’s legal team argued that the financial statements in question were not deceptive, as they were accompanied by disclaimers highlighting their unaudited nature. They also pointed out that independent evaluations were conducted by bankers and insurers, and all loans were repaid.
The prolonged legal battle has been marked by twists and turns, with Trump facing multiple legal challenges even as he pursued a second term as president. From a criminal hush money case to a defamation lawsuit, the former president has been embroiled in legal disputes on various fronts.
As the case continues to unfold, the ramifications of the appeals court’s decision will undoubtedly shape the future trajectory of Trump’s legal battles and financial standing.
Published on:
