Appeals Court Makes Critical Ruling In Letitia James’ Civil Fraud Case Against Trump

A New York appeals court tossed a nearly half-billion-dollar civil fraud penalty against President Donald Trump on Thursday.

The penalty, which now stands at over $515 million with interest, is “excessive,” a panel of five judges found.

Judge Arthur Engoron ordered Trump last year to pay $355 million in penalties in the case brought by New York Attorney General Letitia James, who alleged Trump inflated his net worth to secure better loans.

“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” Justice Peter H. Moulton wrote in a concurring opinion joined by Justice Dianne Renwick.

Trump wrote on Truth Social that he “greatly respect[s] the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State.”

“This was a Case of Election Interference by the City and State trying to show, illegally, that I did things that were wrong when, in fact, everything I did was absolutely CORRECT and, even, PERFECT,” he wrote. “Every single Dollar was thrown out, even the penalties imposed on us by the Corrupt Judge, one of the most overturned in History, Arthur Engoron.”

Two other judges, Justices John R. Higgitt and Llinét M. R, said they would have vacated Engoron’s judgement and ordered a new trial.

Another judge on the bench highlighted James’ political motives in bringing the case, arguing the complaint should have been dismissed in its entirety. (RELATED: Pam Bondi Names Ed Martin Special Attorney To Investigate Letitia James, Adam Schiff Mortgage Fraud Allegations)

“Plainly, her ultimate goal was not ‘market hygiene,’ as posited by Justice Moulton, but political hygiene, ending with the derailment of President Trump’s political career and the destruction of his real estate business,” Justice David Friedman wrote. “The voters have obviously rendered a verdict on his political career. This bench today unanimously derails the effort to destroy his business.”

Trump wrote on Truth Social that he was “honored by Justice David Friedman’s great words of wisdom, which should be read by everyone.”

James is now under federal investigation for allegedly falsifying mortgage documents to obtain more favorable loan terms. Attorney General Pam Bondi named Ed Martin as special attorney to investigate both James and Democratic California Sen. Adam Schiff in August. Additionally, the Department of Justice (DOJ) is reportedly probing James for violating Trump’s civil rights by bringing the lawsuit.

This is a breaking news story and will be updated. 

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