New York AG appeals reversal of Trump's $500 million fraud penalty
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New York AG appeals reversal of Trump's $500 million fraud penalty

Why This Matters

A lower court said in August that the huge fine on President Donald Trump and his company violated the U.S. Constitution's ban on excessive fines.

September 4, 2025
06:40 PM
3 min read
AI Enhanced

New York Attorney General Letitia James holds a press conference ing a ruling against former U.S.

President Donald Trump ordering him to pay $354.9 million and barring him from doing in New York State for three years, in the Manhattan borough of New York City, U.S., February 16, 2024.

David Dee Delgado | ReutersNew York Attorney General Letitia James on Thursday appealed a court's decision to toss out a $500 million penalty on President Donald Trump and his company in connection with fraud.The appeal comes two weeks after that punishment imposed by a trial court judge on Trump was voided by the First Judicial Department of the New York Supreme Court's Appellate Division.That court said the fine violated the U.S Constitution's Eighth Amendment, which hibits "excessive fines."James is asking the New York Court of Appeals — the state's highest court — to reverse that decision.The Appellate Division, in its ruling tossing out the fine on Trump, upheld Manhattan Supreme Court Judge Arthur Engoron's finding that Trump and the others committed fraud.Read more CNBC coverageWhite House lambasts $2 trillion Norwegian wealth fund's Caterpillar exitUK feels the heat as investors and critics question its futureTrump asks Supreme Court to quickly hear appeal to his tariffsCongress races to avoid government shutdown as partisan standoff deepensBan on congressional stock ownership gains momentum with new billJudge voids $2.2 billion Harvard funding freeze by Trump administrationGOP senators not in rush to consider Cook replacement on Fed until case resolvedNewsmax sues Fox News for allegedly abusing monopoly powerTrump calls Epstein files distraction from success, victims call for their releaseTrump appeals ruling that National Guard deployment to LA broke the lawAbbe Lowell: The veteran defense lawyer squaring off against Trump in Federal Reserve fightTrump will ask Supreme Court for 'expedited ruling' on tariffs appealEngoron ruled that Trump and other defendants overstated the purported value of real estate assets owned by the Trump Organization to inflate Trump's purported net worth.

In turn, those bogus valuations helped Trump's company get better terms on loans and other financial benefits, the judge ruled.Engoron cited those findings in imposing the massive fine on Trump and other defendants.The notice of appeal filed on Thursday is brief and does not detail the arguments for why James believes the decision should be overturned.

Those arguments will be laid out in future filings.A spokeswoman for James had no on the filing.CNBC has requested from Trump's attorneys.This is news. Please refresh for .

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