NY Appeals Court Throws Out Trump’s $500M Civil Fraud Penalty

Discussion in 'Politics' started by MarkBrown, Aug 22, 2025 at 8:43 AM.

  1. MarkBrown

    MarkBrown

    NY Appeals Court Throws Out Trump's $500M Civil Fraud Penalty | TRUTH Press

    NY Appeals Court Throws Out Trump’s $500M Civil Fraud Penalty
    Emily Ross
    5 hours ago
    2 min read 15051 views

    [​IMG]
    A New York appellate court on Wednesday threw out the $500 million civil fraud penalty levied against President Donald Trump, ruling the massive fine was an “excessive” punishment that violated the Eighth Amendment.

    The Appellate Division ruling leaves intact findings that Trump and his company engaged in fraud but eliminates the disgorgement order of $364 million plus interest — which had ballooned to roughly half a billion dollars.


    Five justices unanimously agreed that Attorney General Letitia James acted within her authority and that some injunctive relief was warranted. But they concluded the financial penalty went too far.

    Trump Declares “Total Victory”
    Trump immediately celebrated the ruling on Truth Social, calling it a vindication:

    “TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case! … The Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State.”


    He again labeled the case a “political witch hunt” and said it was designed to interfere with his 2024 campaign.

    Judge Friedman’s Partial Dissent
    While most of the panel upheld liability, Justice David Friedman issued a blistering partial dissent, arguing the entire case should be dismissed.

    He accused James of using Section 63(12) of New York’s Executive Law as a political weapon, giving her “essentially limitless power to prosecute her political enemies.”


    Friedman wrote that Trump’s real estate deals involved sophisticated counterparties who profited, with “no discernible negative effect on the public interest.” He concluded:

    “Her ultimate goal was not market hygiene … but political hygiene, ending with the derailment of President Trump’s political career and the destruction of his real estate business.”

    Likely Headed to NY’s Highest Court
    Because of the split opinion, the case is now likely headed to the New York Court of Appeals, the state’s highest court.

    Attorney General James, who campaigned in 2018 promising to target Trump, said the ruling still validated her office’s core claims. But her office faces growing scrutiny itself: the Justice Department has opened a grand jury probe into James, issuing subpoenas related to her pursuit of Trump.

    James has dismissed the federal investigation as political payback, calling it part of Trump’s “revenge tour.”
     
  2. gwb-trading

    gwb-trading

    As explained in the other threads on this subject. This is merely temporary to allow moving the case to a higher appeals court.

    "Thursday’s decision, which was not unanimous, leaves Trump still liable for fraud. The judges aligned to uphold his liability and toss the penalty so the case could move forward for further appellate review."
     
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