Trump Requests New York Appeals Court to Overturn Nearly $500 Million Civil Fraud Judgment, According to Reuters

By Jack Queen and Luc Cohen

NEW YORK – On Thursday, Donald Trump’s legal team aims to convince a New York state appeals court to overturn a nearly $500 million judgment against the former president related to fraudulent real estate business practices.

In February, Justice Arthur Engoron ruled that Trump, the Republican nominee for the upcoming election, must pay $454.2 million in penalties and interest for exaggerating his net worth to secure favorable terms from banks. This civil case was initiated by New York Attorney General Letitia James.

The ruling poses a significant risk to Trump’s extensive business empire, which encompasses hotels, office buildings, and golf courses across the globe. As interest continues to accumulate, Trump now faces a total liability of $478.3 million.

This case is among several legal challenges Trump has encountered since leaving the White House in 2021. Additionally, he owes close to $90 million in federal civil penalties for defaming a writer who accused him of sexual abuse, and he was convicted of criminal charges in May related to hush money payments made to a porn star.

Trump has denied any misconduct, contending that these legal issues are politically motivated attempts to sabotage his campaign. A recent poll indicated that Vice President Kamala Harris, the Democratic nominee, is leading Trump nationally, though Electoral College results ultimately determine the election outcome.

In a brief submitted in July to the Appellate Division, Trump’s attorneys argued that the financial documents he provided to banks actually underestimated his wealth and that there were no signs that lenders had suffered any financial losses.

Furthermore, his lawyers accused Attorney General James, a Democrat, of targeting a political opponent. They maintained, "This politically motivated prosecution attempts to penalize purely proper and lawful conduct."

In an August response, lawyers representing James’ office emphasized that the law under which they sued Trump does not require evidence that the banks incurred losses or relied on his misleading financial statements when making lending decisions. They argued that the law’s purpose was to maintain the honesty and integrity of New York’s commercial marketplaces by preventing fraud before any harm occurs.

The case emerged from Trump’s leadership of the Trump Organization prior to his presidency in 2017. In September 2023, following a three-month non-jury trial, Engoron found Trump liable for ten years of false declarations regarding his asset values and net worth. Notably, he took issue with Trump’s claim that his Manhattan penthouse was 30,000 square feet, a size nearly three times larger than its actual dimensions.

The trial concentrated exclusively on the penalties associated with Trump’s conduct. Alongside the financial penalties, Engoron also barred Trump from holding any top positions in New York companies or seeking loans from banks operating within the state.

In April, Trump managed to prevent potential asset seizures by posting a $175 million bond while pursuing his appeal.