Trump half-billion-dollar civil fraud fine overturned by New York appeals court

Jessica Koscielniak | ReutersA New York state appeals court on Thursday tossed out a massive monetary fine for civil fraud imposed on President Donald Trump, his company, and other defendants related to a lawsuit by state Attorney General Letitia James.The appeals court said the eye-popping penalty — which rose to more than $500 million since it was imposed in early 2024 — violates the U.S Constitution's Eighth Amendment, which hibits "excessive fines."But the court in the same ruling upheld Manhattan Supreme Court Judge Arthur Engoron's finding that Trump and the others committed fraud by overstating the value of real estate assets owned by the Trump Organization to boost Trump's purported net worth

Those actions helped the company get better loan terms and other financial benefits.The ruling Thursday also upheld nonmonetary sanctions imposed by Engoron on the defendants, saying they were "well crafted to curb defendants' culture."The decision was issued by a five-judge panel of the First Judicial Department of the New York Supreme Court's Appellate Division.James said she will ask the state's highest court to overturn the decision related to the fine.The ruling, which came 11 months after oral arguments in the case, was split several ways, with one judge, David Friedman, saying he would have dismissed James' lawsuit outright.In a concurring opinion on the fine being voided, Judge Peter Moulton wrote, "While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half-billion-dollar award to the state."James "did not carry her initial burden" of establishing the rough total of the fits "causally connected" to the defendants' violations, Moulton wrote."Indeed, the calculation of the disgorgement in this case was far from a reasonable apximation," Moulton wrote.Trump crowed the ruling in a post on Truth Social."TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!" Trump wrote."I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting all throughout New York State," the president said."Others were afraid to do there

It was a Political Witch Hunt, in a sense, the s of which no one has ever seen before."Eric Trump, the president's son and one of the defendants in the lawsuit, in a social media post, wrote, "Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!"Eric Trump, with his brother Donald Trump Jr., operates The Trump Organization

Experts say there's no 'quick fix'Trump tells Zelenskyy to end war, echoing Kremlin demands on Crimea and NATOWhite House envoy claims Russia agreed to 'Article 5-' security guarantees for UkraineZelenskyy to meet with Trump after Putin talks end without a ceasefireJames, in her statement saying she would ask the New York Court of Appeals to restore the fine, also said, "The First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud." "The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers' ability to do in New York," James said."It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit."The trial judge, Engoron, in February 2024 ordered Trump to pay around $454 million in total penalties after holding him liable for fraud.Engoron found that Trump's statements of financial condition, signed between 2014 and 2021, overvalued his assets from between $812 million and $2.2 billion.With interest, the penalty imposed on Trump and other defendants in the case has grown to more than $500 million.Don’t miss these insights from CNBC Morgan Stanley says nu power is gaining momentum, recommends these stocksWells Fargo hikes S&P 500 target as U.S. tariffs get delayed againMorgan Stanley maintains bullish stance on Nvidia heading into earnings, raises price targetWhy UBS just raised its gold forecast again as the precious metal hovers near record high