New York Appeals Court appears receptive to reversing or reducing $454M Trump civil fraud judgment

Join Fox News for access to this content

You have reached your maximum number of articles. Log in or create an account FREE of charge to continue reading.

By entering your email and pushing continue, you are agreeing to Fox News’ Terms of Use and Privacy Policy, which includes our Notice of Financial Incentive.

Please enter a valid email address.

Judges on a New York appeals court were open-minded and receptive to the possibility of reversing or reducing the $454 million civil fraud judgment in New York Attorney General Letitia James’ lawsuit against former President Trump. 

Trump appealed the civil fraud ruling that demanded he pay more than $450 million. The former president’s attorneys called New York Judge Arthur Engoron’s ruling “draconian, unlawful, and unconstitutional.” 

 TRUMP’S $454M JUDGMENT BOND SLASHED BY MORE THAN HALF IN APPEALS COURT RULING

Engoron ruled that Trump and other defendants were liable for persistent and repeated fraud, falsifying business records, issuing false financial statements, conspiracy to falsify false financial statements, insurance fraud and conspiracy to commit insurance fraud. 

A five-judge panel on a New York appeals court in Manhattan Thursday heard oral arguments on the appeal. 

The former president did not attend oral arguments Thursday but was instead represented by his legal team.

Trump attorney D. John Sauer argued that James’ lawsuit stretched New York consumer protection laws and said there were “no victims” and “no complaints” of Trump’s business from lenders and insurers. 

Attorney General lawsuit

New York Attorney General Letitia James speaks during the Congressional Black Caucus Foundation Annual Legislative Conference National Town Hall on September 21, 2023, in Washington, DC.  (Jemal Countess/Getty Images for Congressional Black Caucus Foundation)

Sauer said the cause “involves a clear cut violation of the statute of limitations,” pointing to transactions used in the non-jury civil fraud trial that dated back more than a decade. 

TRUMP VOWS TO FIGHT NEW YORK AG CASE ‘ALL THE WAY UP TO THE US SUPREME COURT,’ AS DEADLINE TO POST $454M LOOMS

Sauer said that if the verdict is not overturned, “people can’t do business in real estate” without fear. 

The Appellate Division typically rules about a month after arguments are complete, meaning a final decision could come before Election Day on Nov. 5. 

Judge Peter H. Moulton questioned if James’ lawsuit turned into “something it was not meant to do.” 

Moulton said the “immense penalty in this case is troubling.”

But the state argued that there is evidence to support the verdict. 

TRUMP BARRED FROM OPERATING BUSINESS, ORDERED TO PAY OVER $350 MILLION IN NY CIVIL FRAUD CASE

In September 2023, before the non-jury trial began, Engoron ruled that Trump and the Trump Organization had committed fraud while building his real estate empire by deceiving banks, insurers and others by overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing.

Trump was hit with an initial penalty of $355 million. That sum is quickly increasing via interest accruals of approximately $112,000 a day until paid in full, now sitting around $470 million.

Judge Arthur Engoron

NEW YORK, NEW YORK – NOVEMBER 13: Justice Arthur Engoron presides over the civil fraud trial of former President Donald Trump and his children at New York State Supreme Court on November 13, 2023, in New York City.  ((Photo by Erin Schaff-Pool/Getty Images))

Trump, the 2024 presumptive GOP presidential nominee, and his legal team had appealed and requested a stay on his $454 million civil fraud judgment. Trump’s legal team said the initial requested bond was “unprecedented for a private company,” and said to post it in the judgment’s full amount was a “practical impossibility.” 

An appeals court slashed former President Trump’s bond payment in March, and the former president paid $175 million. 

Trump has vowed to fight the case “all the way up to the U.S. Supreme Court if necessary.” 

Trump and his family denied any wrongdoing, with the former president saying his assets had been undervalued. Trump’s legal team insisted that his financial statements had disclaimers, and made it clear to banks that they should conduct their own assessments.

Former U.S. President Donald Trump speaks to the media

Former U.S. President Donald Trump speaks to the media as he arrives for the start of his civil fraud trial at New York State Supreme Court on October 02, 2023, in New York City.  (Michael M. Santiago/Getty Images)

Throughout the trial, Trump attorneys brought witnesses, including former Deutsche Bank top executives, who testified the banks sought additional business from Trump, whom they viewed as a “whale of a client.”

Trump’s defense also brought in expert witnesses, including New York University accounting professor Eli Bartov, who reviewed the Trump financial statements at issue in the case and said he found no evidence of accounting fraud.

CLICK HERE TO GET THE FOX NEWS APP

Bartov testified last month that Trump’s financial statements did not violate accounting principles, and he suggested that anything problematic – like a huge year-to-year leap in the estimated value of his Trump Tower penthouse – was simply an error.

“My main finding is that there is no evidence whatsoever of any accounting fraud,” Bartov testified. Trump’s financial statements, he said, “were not materially misstated.”

The Associated Press contributed to this report. 

Original News Source Link – Fox News

Running For Office? Conservative Campaign Consulting – Monthly Rates!