New York state appellate court judges have granted leniency to the possibility of reversing or reducing New York Attorney General Letitia James' $454 million civil fraud judgment in a lawsuit against former President Trump.
Trump has appealed a civil fraud judgment that required him to pay more than $450 million. Lawyers for the former president called New York Judge Arthur Engoron's ruling “draconian, illegal and unconstitutional.”
More than half of Trump's $454 million judgment bond thrown out by appeals court ruling
Engoron holds that Mr. Trump and the other defendants are responsible for persistent and repeated fraud, falsification of business records, issuance of false financial statements, conspiracy to falsify false financial statements, insurance fraud, and conspiracy to commit insurance fraud. It was decided that there was.
On Thursday, a five-judge panel of the New York Court of Appeals in Manhattan heard oral arguments on the appeal.
The former president did not attend Thursday's oral argument, but was instead represented by his defense team.
Mr. Trump's lawyer, D. John Sauer, said Mr. James' lawsuit expands on the New York Consumer Protection Act, saying that “there are no victims” and “there are no complaints” from lenders and insurance companies regarding Mr. Trump's business. There have been no reports,” he said.
New York State Attorney General Letitia James speaks at the Congressional Black Caucus Foundation Annual Legislative Conference National Town Hall in Washington, DC, September 21, 2023. (Countess Jemal/Getty Images, Congressional Black Caucus Foundation)
Sauer said the causes “include clear violations of the statute of limitations,” pointing to deals used in non-jury civil fraud trials dating back more than a decade.
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Sauer said that if the ruling is not overturned, “people will not be able to conduct their real estate business without fear.”
The Appellate Division typically issues a decision about a month after arguments conclude, so a final decision could come before the Nov. 5 vote.
Judge Peter H. Moulton questioned whether James' lawsuit turned out to be “unintended.”
“The large fines in this case are concerning,” Mr Moulton said.
But the state argued it had evidence to support that ruling.
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In September 2023, before the non-jury trial began, Mr. Engoron accused Mr. Trump and the Trump Organization of overstating his assets and exaggerating his net worth in documents used to create a real estate empire. The court ruled that he had committed fraud by defrauding banks and insurance companies. Securing deals and financing.
Trump was initially fined $355 million. This amount has been rapidly increasing with him accruing interest of approximately $112,000 per day until it is paid in full and is now approximately $470 million.
NEW YORK, NY – NOVEMBER 13: Judge Arthur Engoron presides over the civil fraud trial of former President Donald Trump and his children in New York State Supreme Court in New York City on November 13, 2023. ((Photo by: Erin Schaff Pool/Getty Images))
Trump, a 2024 Republican presidential candidate, and his legal team had filed an appeal seeking to block a $454 million civil fraud judgment. Trump's lawyers said the initial bond requested was “unprecedented for a private company” and that it would be “practically impossible” to count toward the full amount of the judgment.
An appeals court in March reduced former President Trump's bond payments, resulting in the former president paying $175 million.
President Trump has vowed to fight the case “all the way to the U.S. Supreme Court if necessary.”
Trump and his family have denied any wrongdoing, and the former president said his assets were undervalued. Mr. Trump's lawyers argued that his financial statements contained a disclaimer and made it clear that banks should conduct their own evaluations.
Former US President Donald Trump speaks to the media as he arrives for the start of his civil fraud trial in New York State Supreme Court on October 2, 2023 in New York City. (Michael M. Santiago/Getty Images)
Throughout the trial, Mr. Trump's lawyers called witnesses, including former Deutsche Bank executives, who testified that the banks viewed Mr. Trump as a “customer whale” and sought additional business from him.
Trump's defense also brought in expert witnesses, including New York University accounting professor Eli Bartov, who reviewed Trump's financial statements at issue in the case and found no evidence of accounting fraud. said.
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Bartov testified last month that President Trump's financial statements did not violate accounting principles, suggesting that everything at issue, including the estimated value of the Trump Tower penthouse, which increased significantly from year to year, was simply a mistake. did.
“My main finding is that there is no evidence of any accounting fraud,” Bartov testified. He said there were “no material misstatements” in President Trump's financial statements.
The Associated Press contributed to this report.
