Appeal to Overturn Major Fraud Judgment
Donald Trump’s legal team will appear in a New York state appeals court on Thursday, seeking to overturn a civil fraud judgment that ordered the former U.S. president to pay nearly $500 million in penalties and interest. The judgment, handed down by Justice Arthur Engoron in February, stems from claims that Trump inflated his net worth to secure favorable loan terms from banks.
The $454.2 million penalty, now increased to $478.3 million with accrued interest, poses a significant threat to Trump’s real estate empire, which includes luxury properties, office buildings, and golf courses worldwide.
The Fraud Case: Inflated Wealth for Loan Terms
The civil case, brought by New York Attorney General Letitia James, alleges that Trump submitted misleading financial statements to lenders, inflating the value of his assets to obtain better terms on loans. The inflated values, including exaggerated claims about the size of Trump’s Manhattan penthouse, formed the core of the case.
In a 2023 ruling, Engoron found that Trump had exaggerated his asset values and net worth over the course of a decade. While the judge found Trump liable for these misrepresentations, the trial that followed focused solely on determining the penalties, which included financial repercussions and restrictions on Trump’s business activities in New York.
Trump’s Legal Team: Defense and Denials
Trump’s lawyers argue that the financial statements provided to banks actually understated his wealth and that none of the lenders involved suffered losses. They also accuse Attorney General James, a Democrat, of pursuing the case for political reasons, especially as Trump campaigns for the Republican nomination for the 2024 presidential election.
“This politically motivated prosecution attempts to penalize purely proper and lawful conduct,” Trump’s attorneys wrote in a brief submitted to the court in July.
The legal team also points to the fact that no jury was present during the trial and insists that the case is part of a broader effort to interfere with Trump’s political ambitions.
Trump’s Appeal and Next Steps
In April, Trump managed to avert potential asset seizures by posting a $175 million bond, allowing him to appeal the judgment without immediate forfeiture of property. Thursday’s appeal hearing represents Trump’s latest effort to reduce or overturn the nearly $500 million judgment.
The New York state appeals court’s decision will determine whether Trump can successfully contest the fraud judgment or whether the penalties will stand, further impacting his business operations and presidential campaign.
