A New York appeals court threw out the $515 million fraud penalty against President Donald Trump, ruling the disgorgement amount excessive under the Eighth Amendment. The earlier judgment had ordered $354 million after a finding that financial statements were padded to lenders and insurers; interest pushed the total to $515 million. The prior remedies also barred Trump from running the Trump Organization for three years. Judges praised injunctive relief aimed at curbing business culture but found the monetary penalty disproportionate. Eric Trump posted celebratory messages on X/Twitter calling the outcome a victory.
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.
Last year, Trump was ordered to pay $354 million after a judge determined he had committed fraud by padding his financial statements to lenders and insurers. With interest, that penalty increased to $515 million. In addition to the financial penalty, Trump was barred from running the Trump Organization for three years. Thursday's ruling, however, stated that the court found the financial penalty excessive and a violation of the Eighth Amendment.
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