Civil Fraud Judgement Overturned in NY [WATCH]

A New York appeals court on Thursday overturned a $464 million civil judgment against President Donald Trump, reversing a decision that had found him liable for business fraud.

The ruling nullifies the February 2024 judgment issued by Manhattan Supreme Court Justice Arthur Engoron that would have forced Trump to pay more than $500 million, including interest.

The Appellate Division, First Department struck down Engoron’s ruling, which followed an 11-week civil trial brought by New York Attorney General Letitia James.

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Trump, 78, was accused of inflating his net worth by billions of dollars between 2011 and 2021 in order to secure more favorable loan and insurance terms.

Engoron’s initial decision concluded that Trump had exaggerated the value of several of his properties, including his Trump Tower penthouse in New York City and the Mar-a-Lago estate in Palm Beach, Florida.

During the trial, prosecutors presented evidence that Trump’s business listed the Trump Tower triplex at 30,000 square feet rather than its actual size of 11,000 square feet.

In 2015, the company valued the apartment at $327 million, compared to $80 million just four years earlier.

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Mar-a-Lago was also cited as a disputed asset. Trial testimony revealed that Trump valued the property at $517 million in a 2020 financial statement.

However, his own tax broker testified that it had been listed for tax purposes at $27 million as a “social club,” a classification that allowed for reduced taxes.

The property deed prohibits Mar-a-Lago from being sold as a private residence. Trump himself testified during the proceedings that the estate could be worth up to $1.5 billion.

Engoron’s written ruling at the time claimed, “The frauds found here leap off the page and shock the conscience.”

But during appellate arguments in September, some members of the five-judge panel expressed concern over the scope of James’ lawsuit.

Judge Peter Moulton questioned whether the law used to prosecute the case had “morphed into something it was not meant to do,” noting that it does not require proof that any party was directly harmed.

Trump’s attorneys argued that no lenders or insurers lost money on the deals.

They emphasized that institutions such as Deutsche Bank conducted their own assessments, entered agreements willingly, and were repaid in full. “There are no victims here,” the defense contended.

James’ office maintained that falsified valuations distorted the marketplace and posed risks for future lenders.

“The next group of lenders to receive bogus statements might not be so lucky,” Engoron wrote in his original decision.

The case drew national attention as Trump attended portions of the trial while continuing his presidential duties.

He repeatedly described the proceedings as a “political witch hunt,” citing both Engoron and James’ political affiliations. James, a Democrat, campaigned for office in 2018 on a promise to investigate Trump, calling him a “con man” and “carnival barker.”

🚨BREAKING: Federal Appeals court just THREW-OUT President Trump’s $364 MILLION dollar fraud penalty case.

In February of 2024, a New York judge ordered Trump and his companies to pay $360+ million in penalties claiming they “duped banks”

HUGE WIN for President Trump! pic.twitter.com/9F9iuJvrut

— The Patriot Oasis™ (@ThePatriotOasis) August 21, 2025

Trump had posted a $175 million bond while appealing the judgment.

Following Thursday’s appellate ruling, the matter may now proceed to the New York State Court of Appeals, the highest court in the state.

The decision represents a significant legal victory for Trump, who has consistently denied wrongdoing in the case.

He has argued that his valuations reflected subjective assessments of premier properties in New York and Florida, and insisted that his financial statements caused no harm to lenders or insurers.

The legal battle over Trump’s business practices is likely to continue, but the appeals court’s ruling has lifted the immediate threat of the $464 million penalty, removing one of the most serious financial judgments faced by the current President.