In a significant legal victory for President Donald Trump, a New York appeals court has thrown out the unprecedented $465 million civil penalty imposed on him in a high-profile fraud case brought by state Attorney General Letitia James.
The ruling, issued on Thursday, August 21, spares Trump and his organization from the massive financial burden while upholding the underlying finding of liability for fraud.
The decision by the state Appellate Division marks a partial reversal of the judgment handed down by Justice Arthur Engoron in February 2024, following a non-jury trial. Engoron had found Trump, his adult sons, and the Trump Organization liable for inflating asset values to secure favorable loans and insurance deals, ordering them to pay what ballooned to over $500 million with interest.
However, the appeals court determined that the penalty was excessive and not supported by the evidence, effectively voiding the financial punishment while leaving intact the fraud liability and certain restrictions on Trump’s business activities in New York.
President Trump quickly hailed the ruling as a “total vindication” on social media, declaring it a win against what he has long described as a politically motivated “witch hunt” by James, a Democrat who campaigned on investigating him.
“This was a rigged case from the start, and now justice has been served,” Trump posted on X shortly after the decision was announced. Attorney General Letitia James, who spearheaded the civil lawsuit in 2022, responded with disappointment but emphasized that the core fraud findings remain. In a statement, James said, “We are reviewing the decision and considering our options, but make no mistake: Donald Trump is still held accountable for his fraudulent actions.”
Her office had argued that the penalty was necessary to deter future misconduct and reflect the scale of the alleged fraud. The appeals court’s opinion was not unanimous, with a 3-2 split among the judges.
The majority opinion criticized the lower court’s calculation of damages, stating that the state failed to prove sufficient harm to justify such a staggering fine. Dissenting judges argued that the penalty was appropriate given the evidence of persistent fraudulent practices over a decade. Legal experts suggest this ruling could have broader implications for how civil fraud cases are handled in New York, particularly those involving high-profile figures. “It’s a mixed bag,” said Fordham University law professor Jed Shugerman. “Trump avoids the big hit financially, but the fraud stain persists, which could affect his business dealings.”
The case stemmed from allegations that Trump and his company overstated property values by billions of dollars to gain advantages from lenders like Deutsche Bank. While no criminal charges were filed in this civil matter, it has been one of several legal battles Trump has faced amid his return to the White House. Trump’s legal team has indicated they may appeal further aspects of the decision, while James’ office could seek review by the state’s highest court, the Court of Appeals.
For now, the president is celebrating what he calls a major exoneration in a saga that has dragged on for years. This development comes as Trump navigates other ongoing legal challenges, including federal cases related to election interference and classified documents, though his status as president has complicated those proceedings. The ruling underscores the divisive nature of Trump’s post-presidency legal entanglements, with supporters viewing it as evidence of bias and critics insisting accountability must prevail.
Democrats are a malignant cancer on the body politic. Engoron and James need to be charges with “crimes under the color of law” and stripped of their law licenses and barred from public life, for life.