A New York appeals court has ruled that US President Donald Trump will not be required to pay a $515 million (around €443 million) civil fraud penalty, eliminating one of his biggest financial liabilities.
A US court on Thursday threw out the half-billion-dollar penalty in the civil fraudcase against President Donald Trump and his company.
But a panel of five judges upheld other punishments, including a lower court’s finding that Trump and Trump Organization executives 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.
The lawsuit made James one of Trump’s most prominent adversaries.
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.
If including additional penalties levied on Trump’s eldest sons, Donald Trump Jr. and Eric Trump, the total balloons to more than $527 million as of Thursday.
Judges say penalty ‘excessive’ but disagree over merits of lawsuit
The court agreed to eliminate the penalty that came with the verdict, writing that the order “which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution.”
But the panel 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, even with the penalty being too severe.
Another judge 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 was wrong to rule, before the trial began, that the attorney general had proved Trump engaged in fraud.
Trump claims ‘total victory’ after NY appeals court decision
Trump and his sons painted the ruling as a win, with Trump posting to Truth Social that: “TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!”
“I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State.”
Eric Trump, the president’s son, wrote to X: “Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!”
Source : https://www.dw.com/en/us-court-throws-out-massive-fraud-penalty-against-trump/a-73723549
