An appeals court overturned the disgorgement portion of a large civil fraud penalty imposed on Donald Trump, ruling the nearly half‑billion dollar payment was excessive and violated the Eighth Amendment. A lower court had found that Trump fraudulently inflated financial statements sent to lenders and insurers and ordered $355 million in penalties, which with interest exceeded $515 million. Combined penalties against Trump and some Trump Organization executives now top $527 million. The appeals court left injunctive relief intact to address business practices, paused certain corporate leadership bans during appeal, and allowed further appeals to the state's highest court.
NEW YORK -- An appeals court has thrown out the massive civil fraud penalty against President Donald Trump, ruling Thursday in New York state's lawsuit accusing him of exaggerating his wealth. The decision came seven months after the Republican returned to the White House. A panel of five judges in New York's mid-level Appellate Division said the verdict, which stood to cost Trump over $515 million and rock his real estate empire, was "excessive."
"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," Judges Dianne T. Renwick and Peter H. Moulton wrote in one of several opinions shaping the appeals court's ruling.
After finding that Trump engaged in fraud by flagrantly padding financial statements that went to lenders and insurers, Judge Arthur Engoron ordered him last year to pay $355 million in penalties. With interest, the sum has topped $515 million. The total - combined with penalties levied on some other Trump Organization executives, including Trump's sons Eric and Donald Jr. - now exceeds $527 million, with interest.
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