Trump’s $450 Million Civil Fraud Judgment Overturned By Appeals Court
Topline President Donald Trump is no longer liable for the more than $450 million he had been ordered to pay in the civil fraud case against him and his business associates, as a New York appeals court ruled Thursday that the nine-figure judgment for misstating the value of his assets was “excessive”—without reaching a decision on whether the ruling finding Trump liable for fraud should be overturned. Former President Donald Trump appears in the courtroom for the third day of his civil fraud trial at New York State Supreme Court on October 4, 2023 in New York City. Getty Images Key Facts A panel of New York appeals judges threw out the massive fine levied as part of Engoron’s judgment, which found that Trump and his business associates fraudulently inflated the value of assets in order to obtain better business deals and reflect a higher net worth for Trump. New York Attorney General Letitia James sued Trump and his co-defendants arguing they had committed fraud by misstating the value of assets, and Engoron agreed, ruling Trump and his business associates, including his sons, knew the numbers they were listing were false and ordering the defendants to pay millions of dollars in fines each. The judges did not reach a majority on determining whether Trump was correctly found liable for fraud or throw out non-monetary consequences Engoron imposed—like restricting Trump and his associates’ ability to do business in New York—as two judges ruled the fine was excessive but Engoron was correct to find him liable, while other judges took issue with the merits of the initial fraud ruling. “While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State,” judges wrote about the fines levied against Trump and his co-defendants, arguing New York “is not entitled to compound its victory with a massive punitive fine” and that the size of the fine is disproportionate to the amount of money the state lost as a result of the misstated valuations. The ruling will clear Trump of the massive nine-figure fine he stood to pay in the case, but both parties can still appeal the ruling to New York’s highest state court, keeping the case alive. James said in a statement she will appeal the court’s ruling and praised the judges for not striking down the non-monetary penalties Engoron ordered, while Trump claimed on Truth Social the ruling was a “TOTAL VICTORY”—even as it didn’t absolve him of the fraud allegations—and thanked the court for “having the Courage to make this Decision.” Chief Critic “It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit,” James said in a statement Thursday, adding her office “will seek appeal … and continue to protect the rights and interests of New Yorkers.” What To Watch For It remains to be seen if Trump could also appeal Thursday’s ruling—since it threw out the judgment but also didn’t clear Trump of the fraud allegations themselves—in addition to James’ promise to appeal. The appeals court’s Thursday ruling will stand if New York’s highest court decides not to take the issue up. Trump has already paid $175 million into a court-controlled account while the appeals process plays out, after he was allowed not to pay the full judgment right away because Trump argued he couldn’t pay. Whether or not he’ll get that money back will depend on how the appeals process continues to play out: The money will stay locked up until the appeals process fully concludes, so Trump won’t get that money back for now, but will if New York’s Court of Appeals—its highest court—upholds Thursday’s ruling or declines to take up the case. What About Trump’s Presidency? Unlike criminal cases against Trump, whave were been derailed in the wake of his election, civil cases are still allowed to proceed even when he’s in the White House. The Supreme Court ruled in Clinton v. Jones that presidents can still be held liable in civil court for actions before they took office. That means the civil fraud case has not been affected by Trump’s election, and other civil cases against him—like writer E. Jean Carroll’s two defamation cases—can still move forward. Big Number $517 million. That’s approximately how much Trump owed in damages in the civil fraud case as of Thursday, before the appeals court wiped it out. The interest on his initial $454.2 million judgment has gone up by $111,984 per day, based on a 9% annual interest rate, and $24 million had been added to his judgment by the time the appeals court heard the case in September 2024 alone. Forbes Valuation Forbes estimates Trump’s net worth at $6 billion following the appeals court ruling, up from $5.5 billion earlier Thursday morning. The court’s decision boosted the president’s net worth by $500 million, thanks to the hefty liability being wiped from his balance sheet. Trump’s net worth has gone up significantly since Engoron’s ruling in the fraud case was released in February, when Trump was only worth approximately $2.6 billion. That extra money is thanks to Trump’s stake in Truth Social’s parent company, however, which he has so far been unwilling to sell. News Peg The court’s ruling comes nearly a year after the appeals court judges heard oral arguments in September 2024, but only a few weeks after reports emerged that Trump’s Justice Department is now investigating James over the civil fraud case. Prosecutors issued a subpoena to James’ office for documents related to the litigation earlier this month, multiple outlets reported, which The New York Times reports is part of an investigation into whether the case violated Trump’s civil rights. Trump has long lashed out against James over the litigation and claimed she’s a “crook,” and his administration is also reportedly investigating her office’s separate case against the National Rifle Association and the attorney general’s personal real estate transactions. James has opposed
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