Trump Civil Fraud fine expelled by the New York Court of Appeals

A Court of Appeals of the State of New York launched on Thursday a massive monetary fine for civil commercial fraud imposed on President Donald Trump, his company and other defendants related to a claim by the state attorney general Letitia James.

The Court of Appeals said that the amazing penalty, which increased to more than $ 500 million since it was imposed in early 2024, violates the eighth amendment of the Constitution of the United States, which prohibits “excessive fines.”

But the court in the same ruling confirmed the finding of the Judge of the Supreme Court of Manhattan, Arthur Genoron, that Trump and the others committed commercial fraud by exaggerating the value of real estate assets owned by the Trump organization to boost Trump’s supposed net worth. These actions helped the company obtain better terms of loans and other financial benefits.

On Thursday ruling also confirmed non -monetary sanctions imposed by fattening to the defendants, saying that they were “well prepared to stop the business culture of the accused.”

The decision was issued by a panel of five judges of the First Judicial Department of the Appeals Division of the Supreme Court of New York.

James said he will ask the highest court to revoke the decision related to the fine.

The ruling, which occurred 11 months after the oral arguments in the case, was divided in several ways, with a judge, David Friedman, saying that he would have dismissed James’s demand directly.

In a concurrent opinion on the fine that was annulled, Judge Peter Maulton wrote: “While certainly the damage occurred, it was not the cataclysmic damage that can justify a prize of almost half a billion dollars to the state.”

James “did not bring his initial load” to establish the approximate total of the “causally related” profits to the violations of the defendants, “Moulton wrote.

“In fact, the calculation of the return in this case was far from being a reasonable approach,” Moulton wrote.

Trump fell on the decision in a publication about Truth Social.

“Total victory in the false attorney general of the state of New York Letitia James Case!” Trump wrote.

“Highly respect the fact that the court had the courage to throw this illegal and shameful decision that was harming businesses throughout the state of New York,” said the president.

“Others were afraid to do business there. The amount, including interest and sanctions, was more than $ 550 million. It was a political witch hunt, in a commercial sense, which no one had seen before.”

Eric Trump, the president’s son and one of the defendants in the lawsuit, in a publication on social networks, wrote: “Total victory in the case of Sham Ny’s attorney general! After 5 years of hell, justice prevailed!”

Eric Trump, with his brother Donald Trump Jr., operates the Trump organization. Both Donald Trump Jr. and the company were also accused.

James his statement saying that he would ask the New York Court of Appeals to restore the fine, he also said: “The first department said today the well -backed discovery of the Court of First Instance: Donald Trump, his company and two of his children are responsible for fraud.”
 
“The Court confirmed the caution of a precautionary measure that we won, limiting Donald Trump and the capacity of the Trump organization officers to do business in New York,” James said.

“It should not be lost in history: another court has ruled that the president violated the law and that our case has merit.”

The judge of first instance, Corroron, in February 2024 ordered Trump to pay around $ 454 million in total fines after holding him responsible for commercial fraud.

TEORON discovered that Trump’s financial status states, signed between 2014 and 2021, overvalued their assets between $ 812 million and $ 2.2 billion.

With interest, the fine imposed on Trump and other defendants in the case has grown to more than $ 500 million.