A New York appeals court removed the roughly $515 million penalty in the civil fraud case but left intact findings that Trump, his eldest sons, and an executive committed fraud. The attorney general alleged that Trump falsely altered his net worth on financial statements to gain tax and insurance benefits. A lower court had ordered nearly $355 million in penalties before interest. The appeals panel was sharply divided: some judges found the case proven but the penalty excessive, while others said the attorney general exceeded her authority or that pretrial rulings were erroneous.
A New York appeals court Thursday threw out the half-billion-dollar penalty in the civil fraudcase against President Trump and his associates. But a panel of five judges upheld other punishments, including a lower court's finding that Trump, his eldest sons and another executive engaged in fraud. New York Attorney General Letitia James had sued Trump in 2022, alleging he falsely altered his net worth on key financial statements to receive tax and insurance benefits. A New York judge Arthur Engoron last year ordered Trump to pay nearly $355 million in penalties after holding him liable for fraud. With interest, that sum topped $515 million.
The panel agreed to eliminate the penalty that came with the verdict but remained sharply divided on the merits of the lawsuit and Engoron's fraud finding. Two judges wrote that they felt New York Attorney General Letitia James' lawsuit against Trump and his companies was justifiable and that she had proven her case but the penalty was too severe. One wrote that James exceeded her legal authority in bringing the suit, saying that if any of Trump's lenders felt cheated, they could have sued him themselves, and none did.
One judge wrote that Engoron erred by ruling before the trial began that the attorney general had proved Trump engaged in fraud. This is a breaking news story and will be updated.
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