Fresh off victories in other legal cases, Donald Trump on Monday appealed to overturn a nearly $500 million New York civil fraud judgment that threatens his financial resources as he campaigns for the presidency. His lawyers argued that Manhattan Judge Arthur Engoron’s February 16 ruling, which found Trump guilty of lying to banks, insurers, and others about his wealth, was both erroneous and egregious. They claim that New York Attorney General Letitia James’ lawsuit should have been dismissed, that some allegations are barred by the statute of limitations, and that no one was harmed by the alleged fraud. They also argue that James' involvement threatens to drive business out of the state.
Trump's lawyers emphasized that Engoron’s decision, if upheld, would grant James limitless power to target anyone she desires, including political opponents. Engoron had previously rejected similar objections, fining some of Trump’s lawyers for repetitive, frivolous arguments. Trump posted a $175 million bond in April to halt collection of the judgment and prevent asset seizure during the appeal.
In their filing, Trump's lawyers criticized Engoron’s decisions as legally bereft, untethered to the law, and commercially unrealistic. The Appellate Division is set to hear oral arguments in late September. Meanwhile, James’ office maintains confidence in their case, asserting that they won based on facts and the law.
This appeal follows a significant legal and political period for Trump, who was recently wounded in a shooting at a campaign rally in Pennsylvania. Last week, the Supreme Court ruled that ex-presidents have immunity from criminal prosecution for official acts, delaying his Washington, D.C. election interference case. A federal judge in Florida also dismissed Trump's classified documents case, with Special Counsel Jack Smith appealing the decision.
Engoron’s ruling found that Trump, his company, and top executives inflated his wealth on financial statements to secure loans and make deals. Alongside the financial penalty, the judge imposed strict business limitations on the Trump Organization. If upheld, the ruling will force Trump to pay over $470 million in penalties, accruing nearly $112,000 per day in interest.
Trump contends that his wealth, which he testified to include about $400 million in cash and other investments, should cover the penalties. However, James indicated that she will seek to seize assets if Trump cannot pay. Trump and his lawyers have laid the groundwork for their appeal by frequently objecting to Engoron’s trial handling, accusing him of bias and improper application of the consumer-protection statute.
The Appellate Division could uphold, reduce, modify, or overturn Engoron’s verdict. If unsuccessful, Trump can appeal to the state’s highest court, the Court of Appeals.
