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BumRushDaShow

(158,639 posts) Thu Aug 21, 2025, 11:01 AM Thursday

Trump half-billion-dollar civil fraud penalty thrown out by appeals court

Last edited Thu Aug 21, 2025, 11:55 AM - Edit history (1)

Source: CNBC

Published Thu, Aug 21 2025 10:57 AM EDT Updated 4 Min Ago

A New York state appeals court on Thursday threw out a more than $500 million civil business fraud penalty imposed on President Donald Trump and other defendants.

The appeals court said that while "injunctive relief" ordered by the trial judge in the case was "well crafted to curb defendants' business culture" at the Trump Organization, the monetary penalty, "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 lawsuit against Trump and his company, along with other defendants, was filed by New York State Attorney General Letitia James. Manhattan Supreme Court Judge Arthur Engoron in February 2024 ordered Trump to pay around $454 million in total penalties after holding him liable for business fraud.

Engoron found that Trump's statements of financial condition, signed between 2014 and 2021, overvalued his assets from between $812 million and $2.2 billion.

Read more: https://www.cnbc.com/2025/08/21/trump-fraud-new-york-appeals.html

Link to RULING (PDF, 325 pgs) - https://nycourts.gov/courts/AD1/calendar/AppsMots/2025/apps/20250821/2023-04925,%20et%20ano..pdf

Article updated.

Previous article -

Published Thu, Aug 21 2025 10:57 AM EDT Updated 3 Min Ago

A New York state appeals court on Thursday threw out a more than $500 million civil business fraud penalty imposed on President Donald Trump.

The appeals court said that while "injunctive relief" ordered by the trial judge in the case was "well crafted to curb defendants' business culture" at the Trump Organization, the monetary penalty, "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 lawsuit against Trump and his company, along with other defendants, was filed by New York State Attorney General Letitia James.

CNBC has requested comment from James, the White House, and the Trump Organization on the decision, which was issued by the First Judicial Department of the New York State Appellate Division.

This is breaking news. Please refresh for updates.

Original article/headline -

Trump half-billion dollar civil penalty thrown out by appeals court

Published Thu, Aug 21 2025 10:57 AM EDT Updated 1 Min Ago

This is breaking news. Please refresh for updates.

22 replies

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Highlight:

Trump half-billion-dollar civil fraud penalty thrown out by appeals court (Original Post) BumRushDaShow Thursday OP

Trump $464 Million NY Civil Fraud Penalty Vacated on Appeal LetMyPeopleVote Thursday #1

Well, I'd have bet half a billion that this was inevitable Orrex Thursday #2

Why wouldn't the judge just reduce the judgement, Bayard Thursday #3

Because we are now a colony of Russian. orangecrush Thursday #4

Because they couldn't get a majority to agree on an amount FBaggins Thursday #5

WTF makes these judges more expert on what's "unconstitutionally excessive" than the AG and her team?! ancianita Thursday #7

I put the link to the ruling in the OP comments BumRushDaShow Thursday #9

Thanks. Forgot to look. ancianita Thursday #12

I get the frustration... but the answer is "almost everything" FBaggins Thursday #11

Thank you RoseTrellis Thursday #13

Justice ?? chuckle chuckle republianmushroom Thursday #6

He's still liberalgunwilltravel Thursday #8

THERE IS NO JUSTICE IN THIS COUNTRY IF YOU ARE EXTREMELY WEALTHY OR HAVE A LOT OF POWER!!!! sdfernando Thursday #10

You're so right about that Fernando. Justice, and the entire system, is rigged for the wealthy. BComplex Thursday #15

Ever notice that only the creeps and criminals in the US get all the breaks? Bev54 Thursday #14

i am gonna declare all my property is worth $1 pimpbot Thursday #16

Not all is lost, yet (?) BaronChocula Thursday #17

Statement from AG James LetMyPeopleVote Thursday #18

How many appeals to the appeals of the appeals of the other appeals... Justice matters. Thursday #19

The fraud finding was upheld, it is just the amount that is in question. mackdaddy Friday #20

Deadline: Legal Blog-The Trump civil fraud case is a mess. Another round of appeal could clean it up. LetMyPeopleVote Friday #21

The judicial system working as planned. n/t TheFourthMind Friday #22

LetMyPeopleVote

(168,411 posts)

1. Trump $464 Million NY Civil Fraud Penalty Vacated on Appeal

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 11:02 AM

Thursday

Link to tweet

https://news.bloomberglaw.com/us-law-week/trump-464-million-ny-civil-fraud-penalty-vacated-on-appeal

A New York appeals court struck down a $464 million fraud penalty against President Donald Trump and his company in a civil suit over his asset valuations, but upheld his liability in the case, handing him a financial victory over the state’s attorney general.

The decision Thursday vacates a massive penalty from February 2024 by a Manhattan judge who found Trump illegally enriched himself for a decade by inflating the value of his assets on financial documents to get better terms on loans. The appeals court found the penalty “excessive” but maintained that Trump broke the law.

The long-awaited ruling by an intermediate state appeals court wipes out one of Trump’s biggest financial liabilities. It also puts fresh legal pressure on New York Attorney General Letitia James, who has become the focus of a federal probe into whether her lawsuit violated Trump’s legal rights.

Orrex

(65,833 posts)

2. Well, I'd have bet half a billion that this was inevitable

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 11:03 AM

Thursday

Bayard

(26,588 posts)

3. Why wouldn't the judge just reduce the judgement,

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 11:29 AM

Thursday

Instead of throwing it out completely?

orangecrush

(26,319 posts)

4. Because we are now a colony of Russian.

Reply to Bayard (Reply #3)

Thu Aug 21, 2025, 11:39 AM

Thursday

FBaggins

(28,384 posts)

5. Because they couldn't get a majority to agree on an amount

Reply to Bayard (Reply #3)

Thu Aug 21, 2025, 11:51 AM

Thursday

Last edited Thu Aug 21, 2025, 01:20 PM - Edit history (1)

The five judges apparently split three ways.

It's a long decision and I've only gotten started with it - but it appears that one of the five judges would have tossed the entire thing on the theory that the AG couldn't bring the case in the first place. Two others agreed that she had the power and that at least some of the charges were valid... but that the ruling was so defective that the case needed to be sent back down to the supreme court to try again... except they knew there was no way that was going to happen. The two remaining judges agreed that James could bring the case and that the non-financial penalties were well constructed... but that the fine was unconstitutionally excessive.

Two judges wouldn't be able to assign a new/lower amount and they agreed that there was no way that the lower court could start over (because the defendant is POTUS)... so they tossed the entire amount.

ancianita

(41,441 posts)

7. WTF makes these judges more expert on what's "unconstitutionally excessive" than the AG and her team?!

Reply to FBaggins (Reply #5)

Thu Aug 21, 2025, 12:25 PM

Thursday

This isn't just bullshit judicial ignorance, it's judicial arrogance. WTF is wrong with these judges who just toss out a year's worth of expert forensic accounting...

Is there a link to the judgement?

BumRushDaShow

(158,639 posts)

9. I put the link to the ruling in the OP comments

Reply to ancianita (Reply #7)

Thu Aug 21, 2025, 12:46 PM

Thursday

It's 325 pages!

ancianita

(41,441 posts)

12. Thanks. Forgot to look.

Reply to BumRushDaShow (Reply #9)

Thu Aug 21, 2025, 01:01 PM

Thursday

Oh ffs, 325 pages?? something tells me this was written for the SCOTUS to use as its corporate heart so desires.

FBaggins

(28,384 posts)

11. I get the frustration... but the answer is "almost everything"

Reply to ancianita (Reply #7)

Thu Aug 21, 2025, 12:56 PM

Thursday

It's literally their area of expertise.

RoseTrellis

(29 posts)

13. Thank you

Reply to FBaggins (Reply #5)

Thu Aug 21, 2025, 01:18 PM

Thursday

I appreciate the specifics and the details you provided in your analysis.
Definitely cuts thru the chaff with flare.

republianmushroom

(21,096 posts)

6. Justice ?? chuckle chuckle

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 12:05 PM

Thursday

liberalgunwilltravel

(896 posts)

8. He's still

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 12:28 PM

Thursday

A convicted felon.

sdfernando

(5,873 posts)

10. THERE IS NO JUSTICE IN THIS COUNTRY IF YOU ARE EXTREMELY WEALTHY OR HAVE A LOT OF POWER!!!!

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 12:49 PM

Thursday

Especially so if you have both. The only thing that will end that felonious cunk is the grim reaper....and I hope he shows up soon!.....like yesterday!

This country is so fucked!

BComplex

(9,517 posts)

15. You're so right about that Fernando. Justice, and the entire system, is rigged for the wealthy.

Reply to sdfernando (Reply #10)

Thu Aug 21, 2025, 01:39 PM

Thursday

And seems to be totally rigged against the poorest.

Bev54

(12,769 posts)

14. Ever notice that only the creeps and criminals in the US get all the breaks?

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 01:38 PM

Thursday

pimpbot

(1,109 posts)

16. i am gonna declare all my property is worth $1

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 01:39 PM

Thursday

I shouldnt have to pay taxes at all.

Justice in this country is broken. Judges live in the same fantasy world where democrats believe you can still "reach across the aisle".

Anyone hoping for any type of justice for the GOP is dreaming.

BaronChocula

(3,154 posts)

17. Not all is lost, yet (?)

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 01:55 PM

Thursday

In spite of my scant understanding of the convoluted NY State Court System it looks like this appeal can be appealed to NY's highest court (Court of Appeals).

Per NPR:

The court, which split on the merits of the lawsuit and Engoron's fraud finding, dismissed the penalty in its entirety while also leaving a pathway for an appeal to the state's highest court, the Court of Appeals.

https://www.npr.org/2025/08/21/g-s1-84246/civil-fraud-penalty-president-trump-appeal

That is if the State wants to go that route. It seems.

LetMyPeopleVote

(168,411 posts)

18. Statement from AG James

Reply to BumRushDaShow (Original post)

Thu Aug 21, 2025, 02:38 PM

Thursday

Link to tweet

https://abcnews.go.com/US/appeals-court-throws-trumps-454-million-civil-fraud/story?id=124848691&cid=social_twitter_abcnp

James, in a statement released following the decision, said that her case "has merit" and that she will appeal to the state's highest court in an attempt to reinstate the penalty.

"The 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. The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers' ability to do business in New York," the statement said. "We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers."

"Today's ruling by the New York appeals court is a resounding victory for President Trump and his company," said Trump's former personal attorney Alina Habba, who helped represent Trump in the case and was later named interim U.S. attorney for New Jersey. "The court struck down the outrageous and unlawful $464 million penalty, confirming what we have said from the beginning: the Attorney General's case was politically motivated, legally baseless, and grossly excessive."

Justice matters.

(8,789 posts)

19. How many appeals to the appeals of the appeals of the other appeals...

Reply to LetMyPeopleVote (Reply #18)

Thu Aug 21, 2025, 11:48 PM

Thursday

does true justice need to be fair (to both the public of taxpayers and the clique of defendants)??

mackdaddy

(1,839 posts)

20. The fraud finding was upheld, it is just the amount that is in question.

Reply to BumRushDaShow (Original post)

Fri Aug 22, 2025, 12:13 AM

Friday

Apparently according to Popok on LegalAF there were actually three different opinions given in the finding by different judges on this level of appeal. It will be going to the top level appeals court next.

Here is his vid that goes over the nuances here.

LetMyPeopleVote

(168,411 posts)

21. Deadline: Legal Blog-The Trump civil fraud case is a mess. Another round of appeal could clean it up.

Reply to BumRushDaShow (Original post)

Fri Aug 22, 2025, 03:37 PM

Friday

New York Attorney General Letitia James has already signaled her intention to seek further review at the state’s highest court.

The Trump civil fraud case is a mess. Another round of appeal could clean it up.

New York Attorney General Letitia James has already signaled her intention to seek further review at the stateâ€™s highest court.
www.msnbc.com/deadline-whi...
— Phyllis B Kantor (@wiselady11.bsky.social) 2025-08-22T15:54:35.908Z

https://www.msnbc.com/deadline-white-house/deadline-legal-blog/trump-civil-fraud-case-letitia-james-appeal-new-york-rcna226377

But that was just the beginning. The oddity grew upon seeing, toward the start of the first of three separate decisions from the five-justice panel, that “none of the three decisions garners a majority.”.....

That first opinion, by Justice Peter Moulton joined by Justice Dianne Renwick, said that those two justices thought New York’s attorney general acted lawfully in bringing the fraud case. But they said that ordering the defendants to “pay nearly half a billion dollars” to New York amounts to an “excessive” and unconstitutional fine.

The second opinion, by Justice John Higgitt joined by Justice Llinét Rosado, agreed that James had the authority to bring the suit but said they thought a new trial was warranted.

The third opinion, by Justice David Friedman, argued for dismissing the case outright in Trump’s favor.

So, we have three opinions saying different things. How did the panel attempt to come to a resolution?....

Though they thought a new trial was needed, their opinion said that “after much consideration, with great reluctance and with acknowledgement of the incongruity of the act,” they agreed to join the bottom line of Moulton and Renwick’s opinion that tosses out the massive financial penalty as well as sanctions on Trump defense lawyers, while otherwise upholding the case in James’ favor.

Citing the “truly extraordinary circumstances here, where none of the writings enjoys the support of a majority,” they said the parties “must have a decision on this matter and, concomitantly, the option of further review of this matter by the Court of Appeals.”....

James, who has denied any wrongdoing herself, said in a statement Thursday that the appeals court “affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud.” She said the court “upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers’ ability to do business in New York. It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit.” She concluded: “We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers.”

I followed the trial of this case and I listened to the oral arguments in this case. Prior to the oral arguments, the court had on its own motion reduced the bond that trump was required to post from $500 million or so to $175 million. I personally thought that the judge used the wrong measure of damages in his judgment and was expecting to see a remittitur or reduction of damages.

The Court of Appeals (the highest court in NY) is going to have fun in this case. The fact that court found that trump violated the law and upheld the injunctions is meaningful. trump and his kids are banned from being an officer in a New York corporation.

TheFourthMind

(349 posts)

22. The judicial system working as planned. n/t

Reply to BumRushDaShow (Original post)

Fri Aug 22, 2025, 03:42 PM

Friday

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