State Attorneys Argue “Overwhelming Evidence” Supports Judgment
New York state lawyers are urging an appeals court to maintain a nearly $500 million civil fraud judgment against former President Donald Trump, arguing that substantial evidence proves he lied about his wealth over many years. This judgment stems from a lawsuit by New York Attorney General Letitia James, which found that Trump and his associates engaged in large-scale fraud.
Legal Filing Challenges Trump’s Appeal
In a 168-page legal submission, Assistant Solicitor General Daniel S. Magy argued that Trump’s appeal is filled with “meritless legal arguments” and disregards substantial trial evidence. The state contends that Trump and his co-defendants, including his sons Eric and Donald Trump Jr., manipulated financial statements to secure loans worth over half a billion dollars and generate millions in profits.
Appeal Hearing Set for September
The Appellate Division, New York’s mid-level appeals court, has scheduled oral arguments for September 26. The court typically issues rulings about a month after arguments, meaning a decision could arrive before the conclusion of the 2024 presidential race, in which Trump is a leading Republican contender.
If the court upholds the judgment, it could significantly impact Trump’s personal wealth and business operations, as the Trump Organization would face strict limitations, including oversight by a court-appointed monitor for at least three years.
Potential Outcomes and Legal Arguments
Trump’s legal team is requesting that the court overturn the February 16 ruling by Manhattan Judge Arthur Engoron, who found that Trump lied to banks and insurers about his wealth. They argue that the verdict was erroneous and that the case should never have gone to trial, citing the statute of limitations and contesting the application of a consumer protection law to their case.
If the Appellate Division upholds Engoron’s ruling, Trump may be required to pay the $485 million judgment, which includes over $20 million in interest accrued since the verdict. Trump has already posted a $175 million bond to prevent the state from seizing his assets while he appeals.
Implications for Trump’s Business and Personal Wealth
If the judgment is upheld, Trump could be forced to forfeit a substantial portion of his fortune. Engoron ordered Trump to pay $355 million in penalties, accounting for what he described as “ill-gotten gains” from inflated financial statements, which allowed Trump to secure favorable loan terms and complete projects he might not have otherwise finished.
As the interest on the judgment continues to accumulate, the total owed will increase by nearly $112,000 per day until the full amount is paid or the verdict is overturned.
