A New York appeals court has overturned a massive civil fraud judgment against President Donald Trump, offering a substantial legal reprieve.
Appeals Court Eases Trump's Burden, Keeps Ban
The New York Appellate Division’s First Department on Thursday nullified a $500 million-plus penalty against Trump and his business empire, reported The Wall Street Journal.
The ruling, delivered by a five-judge panel, upheld the trial judge’s fraud liability determination against Trump. However, it also highlighted the contentious nature of the case, which was brought by New York Attorney General Letitia James.
The case alleged that Trump hid low appraisals and land-use restrictions, relied on questionable investment metrics, and exaggerated the size of his Trump Tower triplex in Manhattan.
In 2024, Judge Arthur Engoron ruled that Trump inflated financial statements to mislead lenders and insurers, ordering a $355 million penalty. With interest, Trump now owes over $515 million. Including fines against Trump Organization executives, such as Eric Trump and Donald Jr., the total penalties have risen to more than $527 million.
His legal team, however, argued it amounted to a misuse of a broad state civil-fraud statute. The court agreed with the trial judge’s fraud finding but disagreed on the penalty, freeing Trump from the financial burden.
Although the ruling favored Trump, parts of the judgment still stand — including business restrictions on him and his company, as well as a two-year prohibition on his two sons from serving as officers of any New York company.
Trump welcomed the decision and called the entire case a “Political Witch Hunt,” while his son, Eric Trump, called it a “Massive Victory” for the Trump organization.
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$100 Million Bond Deals Put Spotlight On Trump's Finances
The court ruling comes on the heels on Trump’s bond purchase disclosure. Since taking office, Trump has bought over $100 million in bonds, disclosures show. His 690 transactions include debt from corporations like Meta Platforms (NASDAQ:META), Home Depot (NYSE:HD), UnitedHealth (NYSE:UNH), and T-Mobile (NASDAQ:TMUS), raising conflict-of-interest concerns as critics say that these firms are affected by federal policy. Unlike past presidents, Trump hasn't divested holdings.
Notably, the president is legally exempt from many conflict-of-interest laws. Forbes now pegs Trump’s net worth above $5 billion. The recent ruling is a significant legal victory for Trump, who has been embroiled in multiple legal battles in the past. Trump’s tariff decisions await a final verdict from the court.
Earlier in August, Economist Peter Schiff predicted that Trump’s tariffs would likely be declared unconstitutional by the U.S. Appellate Court, potentially providing Trump with another legal reprieve. The recent ruling in Trump’s favor adds to the legal developments that could impact his future.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
