An appeals court in New York has thrown out a massive $515 million penalty against Donald Trump, calling it “excessive.” The fine was originally imposed by Judge Arthur Engoron after finding Trump had inflated the value of his assets for years to get better deals from banks and insurers.
While the court agreed Trump committed fraud, it said the punishment went too far.
Judges Dianne T. Renwick and Peter H. Moulton wrote: “The court’s 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.”
The ruling is a major win for Trump, who called it “total victory.”
“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,” Trump posted on social media.
Instead of the massive fine, the court imposed a limited punishment: Trump and his two oldest sons, Eric and Donald Jr., are barred from running New York businesses for a few years. But they will not have to pay hundreds of millions in penalties.
The legal battle isn’t over yet. The case can still go to New York’s highest court, and the current penalties are on hold while Trump appeals. He had earlier avoided paying the fine by posting a $175 million bond.
The five-judge panel was deeply divided and issued a 323-page opinion. Some judges supported the fraud ruling but thought the punishment went too far. Others questioned whether the attorney general even had the authority to bring the case.
Judge David Friedman didn’t hold back. He accused New York Attorney General Letitia James of using the case to try to destroy Trump’s business and career. “Plainly, her ultimate goal was not ‘market hygiene’ … but political hygiene,” he wrote, calling it an attempt at “the derailment of President Trump’s political career and the destruction of his real estate business.”
Friedman added, “The voters have obviously rendered a verdict on his political career. This bench today unanimously derails the effort to destroy his business.”
James has said Trump was guilty of “lying, cheating, and staggering fraud.” Her office didn’t comment after the ruling.
Trump has always denied wrongdoing. During the trial, he said: “I’m an innocent man.” He described the case as a “fraud on me.”
His lawyers argued that the financial statements were not meant to be exact and came with disclaimers. They said banks did their own checks and were repaid in full. Even though Trump claimed his Trump Tower apartment was nearly three times bigger than it actually is, he said his estimates were actually conservative.
This case is just one of several legal problems Trump is facing as he begins his second term as president.
In January, Trump was convicted in a criminal case over hush money payments but avoided jail or probation. He is appealing that ruling.
Separately, he was ordered to pay $5 million to writer E. Jean Carroll for sexual abuse and defamation. Another jury later hit him with an $83.3 million judgment for further defamation. He’s also appealing those.
Trump says all of these cases are politically motivated.
