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The Court of Appeal cancels $ 500 million to the Trump fraud penalty requested by New York AG Letitia James

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A court of appeal rejected the penalty of $ 500 million on civil fraud against President Donald Trump in the highly publicized case worn by the Prosecutor General of New York Letitia James.

The New York Call Division canceled the sentence, judging that disgorging was an excessive fine that violates the eighth amendment.

The panel of five members all confirmed that Trump and his company were responsible, saying that James acted within his authority and that the injunction to limit Trump organization practices was appropriate.

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Letitia James, Donald Trump

Ny Ag Letitia James and President Donald Trump (Getty Images)

The decision leaves the responsibility intact but eliminates the massive financial penalty of $ 364 million plus interest, which reaches around $ 500 million.

Trump went to Truth Social to declare a “total victory” and a rail against James and the initial test judge, Arthur Engoron. James also won a victory, noting that the Court of Appeal confirmed the conclusions of fraud and restrictions on Trump’s affairs and she is committed to calling on the sanction decision.

“Total victory in the false prosecutor general of New York Letitia James Case!” Trump wrote.

“I greatly respect the fact that the court had the courage to make this illegal and shameful decision that injured business throughout New York state. Others were afraid of doing business there. The amount, including interest and penalties, was more than $ 550 million.

He also afflicted the case as an elections of the elections, saying that it had been tried during his presidential campaign in 2024, while praising judge David Friedman, who published a partial dissent.

Friedman wrote that James’ real objective was political and argued that the whole case should be rejected. He said that “the ultimate objective was not the hygiene of the market … But political hygiene, ending with the derailment of the political career of President Trump and the destruction of his real estate activity”.

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Friedman castigated the use by James of article 63 (12) of the executive law of New York, which gives the prosecutor general of the State the power to continue the claims of civil fraud.

He wrote that it was unprecedented and political, giving James “an essentially unlimited power to continue his political enemies”.

Friedman wrote that Trump’s trade agreements involved sophisticated parties who took advantage of the public without harming that he “would cancel the judgment and reject the complaint”.

“Article 63 (12) has never been used in the way it is used in this case – namely to attack successful, private, negotiated commercial transactions on the length of the arm between very sophisticated parties entirely capable of monitoring and defending their own interests,” wrote Friedman.

Donald Trump, Alina Habba

President Donald Trump sits with lawyers Christopher Kise and Alina Habba during her civil fraud trial at the Supreme Court of New York State on October 17, 2023 in New York. A court of appeal rejected the civil fraud penalty of nearly $ 500 million against him. (Doug Mills-Pool / Getty Images)

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“All parties to these private transactions have largely benefited from the agreements, of which there was not … a discernible negative effect on the public interest.”

Since the judges were divided into responsibility, the case probably headed for the highest court in New York, the Court of Appeal.

James confirmed his intention to appeal the decision in a statement, saying that she was doing so to protect the rights and interests of New Yorkers.

“The (Court of Appeal) said today the well -supported conclusion of the court of first instance: Donald Trump, his company, and two of his children are responsible for fraud,” wrote James.

“The court confirmed the injunctive repair that we have won, limiting Donald Trump and the capacity of the officers of the Trump organization to do business in New York. It should not be lost in history: another court has decided that the president had violated the law and that our business has merit.”

Letitia James make gestures and ends with anger

New York Prosecutor General Letitia James speaks at a press conference on the Government Ministry of Effectiveness (DOGE) at the Manhattan Federal Justice Palace on February 14, 2025 in New York. (Michael M. Santiago)

James, a prosecutor general elected democrat in 2018, has long been Trump in his reticle. During her campaign, she called him an “illegitimate president” and undertook to “use all the areas of the law” to investigate him and his businesses.

Since Trump returned to office, the Ministry of Justice opened an investigation by the Grand Jury on James and has published assignments related to the civil fraud against Trump, Fox News Digital learned.

James alleged that Trump uses the federal government to pursue it politically. The Ministry of Justice is also investigating for its alleged mortgage fraud, in particular the distortion of its main residence on loans for houses in Virginia and New York. She denies allegations and claims that Trump is behind the decision, calling him a “revenge tour” for the civil fraud trial.

Tamara Gitt and Kevin Ward of Fox News contributed to this report.

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