Aug 24, 05:15 PM

New York Appeals Court Erases Trump $500 Million Fraud Fine; James to Appeal

A five-member panel of New York’s Appellate Division, First Department, has wiped out the roughly $500 million civil-fraud penalty imposed last year on President Donald Trump, ruling the fine excessive and in violation of constitutional limits. The judges issued a 323-page opinion that left intact findings that Trump, two of his children and the Trump Organization were liable for business fraud, but said the monetary award was disproportionate to the harm identified. While striking the penalty, the court upheld injunctive measures that restrict both Trump and his company from holding senior executive positions at New York-based firms for three years and require enhanced oversight of the Trump Organization. Two judges concurred only with the result and urged a retrial, while a dissenting judge argued the attorney general should not have brought the case at all. Attorney General Letitia James said the ruling confirms the state’s proof of fraud and announced she will petition New York’s highest court, the Court of Appeals, to reinstate the financial sanction. "We will seek appeal … and continue to protect the rights and interests of New Yorkers," her office said in a statement. Trump celebrated the decision on his Truth Social platform, calling it a "total victory" and attacking trial judge Arthur Engoron as "incompetent" and "crooked." Despite the appellate win, the former president still faces the underlying fraud liability and the prospect of further litigation if James’s planned appeal moves forward.