A New York appeals court has overturned the USD 500 million penalty that US President Donald Trump was ordered to pay in a civil fraud case last year. The original ruling, by Judge Arthur Engoron, found that Trump had greatly inflated the value of his company’s properties to secure favorable loans.
While the court agreed that Trump was liable for fraud, the appellate judges said the fine was too high and could violate constitutional protections against excessive punishment. Judge Engoron had initially set the fine at USD 355 million, which grew to over USD 500 million with interest. “While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half-billion-dollar award to the state,” wrote Judge Peter Moulton.
Donald Trump Celebrates the ‘Total Victory’ On Social Media
Trump called the decision a “total victory” in a post on his social media platform, Truth Social. He praised the court for having “the courage to throw out this unlawful and disgraceful decision,” adding that it was a “political witch hunt” that had hurt businesses across New York.
The New York Attorney General’s Office, which brought the case, also viewed the decision as partly favorable because it confirmed Trump’s fraud liability. Judges did not overturn other non-financial penalties, and the office intends to appeal the fine to New York’s highest court, the Court of Appeals. In a statement, the office emphasized, “yet another court has ruled that the president violated the law, and that our case has merit.”
A 323 Page Judgement by US Court Saves Donald Trump From USD 500 m Penalty
In addition to Trump, the case involved his two adult sons and the Trump Organization. Judge Engoron had also banned Trump from serving as a company director or taking out loans from banks in New York for three years. Thursday’s decision maintained these non-monetary penalties.
The 323-page appellate ruling included three detailed opinions and showed some disagreement among the five judges on the panel, highlighting the complexity of the case.
Also Read: Why Donald Trump Wants Fed Governor Lisa Cook Out Over Mortgage Fraud Claims?
