Former President Donald Trump’s legal team is fighting a substantial $489 million civil fraud judgment, arguing the penalty is excessive and not legally valid.
At a Glance
- Trump’s lawyers requested a New York appeals court to overturn a $489 million civil fraud ruling.
- The penalty is argued to be excessive and based on flawed legal reasoning.
- Some justices expressed skepticism about the judgment’s size.
- Trump’s lawyer, John Sauer, described the judgment as “draconian” and argued there were no direct victims.
- The state claims the figure represents Trump’s profits from fraud over seven years.
Trump’s Legal Appeal
Trump’s lawyers have appealed to New York’s Appellate Division to overturn a $489 million civil fraud ruling, arguing the penalty is “draconian” and fundamentally flawed. Trump’s attorney, John Sauer, argued the penalty lacks legal justification and there were no direct victims in this case.
New York’s Deputy Solicitor General, Judith Vale, contended that Trump’s fraudulent activities resulted in significant ill-gotten gains over seven years. The court’s initial ruling emphasized that Trump’s actions caused substantial financial impacts by inflating his net worth and securing more favorable deals under false pretenses.
Lawyers for Donald Trump and his company will argue to an appeals panel that it should throw out a judge's February ruling that Trump must fork over hundreds of millions of dollars in profit obtained through fraud, plus millions more in interest. https://t.co/JQrI7aBOjt
— CBS News (@CBSNews) September 26, 2024
Response from the Court
Some justices questioned the appropriateness of the $489 million judgment, expressing skepticism about its size. They probed whether the law was applied correctly and if the severe penalty was justified. This ongoing judicial scrutiny suggests uncertainties about the final outcome of Trump’s appeal.
Engoron’s February ruling emphasized that Trump, his company, and executives were liable for falsifying business records and engaging in insurance fraud. The court ruled Trump had inflated his net worth by billions, significantly overvaluing assets like Mar-a-Lago and Trump Tower.
Judges on a New York appeals court expressed skepticism of a $489 million civil fraud judgment against Donald Trump, his sons, companies and their executives, raising the prospect that the fine awarded to the attorney general could be reduced or vacated. https://t.co/At1Zd56sxq pic.twitter.com/iUGqks8cWN
— Law360 (@Law360) September 26, 2024
Potential Outcomes and Next Steps
The Appellate Division’s decision could arrive before Election Day, determining whether to uphold, reduce, modify, or overturn the ruling. Both sides reserve the right to petition the state’s highest court if dissatisfied. Trump has declared his intent to escalate the matter to the U.S. Supreme Court should his appeal fail.
”There was a lot of fraud and illegality. It went on for seven years.” – Deputy Solicitor General Judith Vale
If all appeals are rejected, New York Attorney General Letitia James may seek to seize Trump’s assets to recover the judgment. However, this civil case does not pose a risk of prison time for Trump. The penalties include paying hundreds of millions in ill-gotten gains and interest.
Sources:
- Trump’s Lawyer Urges NY Appeals Court to Toss $489M Civil Fraud Ruling
- Appeals court signals it might be open to altering Donald Trump’s $489 million civil fraud penalty
