{"id":4127,"date":"2025-08-21T15:12:20","date_gmt":"2025-08-21T20:12:20","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2025\/08\/21\/new-york-appeals-court-overturns-465m-penalty-against-trump-keeps-fraud-finding-2\/"},"modified":"2025-08-21T15:12:20","modified_gmt":"2025-08-21T20:12:20","slug":"new-york-appeals-court-overturns-465m-penalty-against-trump-keeps-fraud-finding-2","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2025\/08\/21\/new-york-appeals-court-overturns-465m-penalty-against-trump-keeps-fraud-finding-2\/","title":{"rendered":"New York appeals court overturns $465M penalty against Trump; keeps fraud finding"},"content":{"rendered":"

\"President<\/p>\n

President Donald Trump speaks to the media as, left to right, Secretary of Commerce Howard Lutnick, Secretary of Labor Lori Chavez-DeRemer and Secretary of Education Linda McMahon look on after signing executive orders in the Oval Office at the White House on April 23, 2025 in Washington, D.C. \u00a0(Photo by Chip Somodevilla\/Getty Images)<\/p>\n

A New York state appeals court on Thursday overturned as overly punitive a nearly $500 million civil penalty against President Donald Trump, but left in place a finding of fraud based on records that inflated the value of Trump\u2019s business holdings.<\/p>\n

A five-judge panel of the New York Appellate Division for the First Department disagreed over aspects of the case and the trial court\u2019s ruling that awarded $465 million to the state after finding Trump liable for fraud, issuing\u00a0three opinions that spanned more than 300 pages<\/a>.<\/p>\n

Two judges concluded that the finding of liability against Trump was correct, two said errors in the trial court meant a new trial should be held, and one judge said the case was wrongly decided.<\/p>\n

Still, all five judges agreed the penalty was excessive, and the two judges who\u2019d called for a retrial joined the two upholding the decision \u201cfor the sole purpose of ensuring finality, thereby affording the parties a path for appeal\u201d to the state\u2019s highest court, according to the decision.<\/p>\n

Loan applications<\/h4>\n

A New York state court found last year that Trump committed financial fraud by submitting loan applications that exaggerated the value of some of his real estate assets, which resulted in more favorable loan terms from banks.<\/p>\n

Writing the determinative opinion Thursday, Appeals Justice Peter Moulton said New York Attorney General Letitia James was within her power to sue over the statements, even though they were between private parties and did not involve the state.<\/p>\n

The state has an interest in upholding \u201cmarket hygiene\u201d and discouraging fraudulent behavior, he wrote. But the fine went too far, he said.<\/p>\n

\u201cWhile the injunctive relief ordered by the court is well crafted to curb defendants\u2019 business culture, the court\u2019s disgorgement 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,\u201d Moulton wrote.<\/p>\n

The amendment says that\u00a0\u201cExcessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.\u201d<\/p>\n

Trump celebrates<\/h4>\n

One judge, Justice David Friedman, said he would have thrown out the case entirely, arguing that James overstepped her authority by bringing the civil case because no one was actually harmed. Most of the valuations were not fraudulently high and even if they were, would have resulted in the same favorable terms Trump received, Friedman wrote.<\/p>\n

\u201cAll parties to these private transactions profited handsomely from the deals, from which there was no discernable negative effect on the public interest,\u201d he wrote. \u201cThis action does not serve to protect the consuming public\u2026 This action does not protect the integrity or operation of the public securities market\u2026, given that defendants do not issue publicly traded securities.\u201d<\/p>\n

In a post to his social media site, Truth Social, Trump exaggerated the court\u2019s finding, saying it cleared him of wrongdoing.<\/p>\n

\u201cTOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!\u201d Trump posted. \u201cI 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\u2026 The amount, including Interest and Penalties, was over $550 Million Dollars. It was a Political Witch Hunt, in a business sense, the likes of which no one has ever seen before.\u201d<\/p>\n

In a statement, James pledged to appeal the opinion, while highlighting that the appeals court had affirmed the finding of fraud.<\/p>\n

\u201cThe First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company and two of his children are liable for fraud,\u201d she wrote. \u201cIt should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit.\u201d<\/p>\n

Thursday\u2019s order does not affect Trump\u2019s May 2024 criminal\u00a0conviction<\/a> on 34 felony counts of falsifying business records related to hush money payments to adult film actress Stormy Daniels.<\/p>","protected":false},"excerpt":{"rendered":"

President Donald Trump speaks to the media as, left to right, Secretary of Commerce Howard Lutnick, Secretary of Labor Lori Chavez-DeRemer and Secretary of Education Linda McMahon look on after signing executive orders in the Oval Office at the White House on April 23, 2025 in Washington, D.C. \u00a0(Photo by Chip Somodevilla\/Getty Images) A New…<\/p>\n","protected":false},"author":2,"featured_media":4128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nNew York appeals court overturns $465M penalty against Trump; 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