An appeals court has overturned a $500 million penalty that President Donald Trump was ordered to pay in a New York civil fraud case. The original ruling, made by Judge Arthur Engoron, stated that Trump had inflated the value of the Trump Organization’s properties to secure more favorable loan terms. The New York Supreme Court’s Appellate Division acknowledged Trump’s liability for fraud but deemed the imposed fine excessive, suggesting it could violate constitutional protections against severe punishment.
Initially, Trump was ordered to pay $355 million, which increased to over $500 million when interest was applied. In their ruling, the judges referenced the lack of catastrophic harm to justify such a large penalty. Despite the ruling on the fine, the New York Attorney General’s Office, which brought the case against Trump, indicated that they still view the outcome as a victory, as Trump’s liability was upheld. They plan to appeal the decision regarding the fine to New York’s highest court, the Court of Appeals.
The Attorney General’s office stated that the court reinforced the findings of fraud against Trump and his company, which included prohibiting Trump from serving as a company director or obtaining loans from banks in New York for three years. The ruling also maintained other non-monetary penalties imposed by Judge Engoron.
The decision, detailed in a 323-page opinion, revealed differing views among the five judges on the panel regarding the merits of the case. While some judges supported the Attorney General’s authority to bring the action, others expressed the opinion that the case should be limited or dismissed.
The appeals court ruling followed nearly a year after oral arguments were heard, during which the judges voiced skepticism about the civil fraud case. Further proceedings are anticipated as all parties navigate the implications of this ruling.
Source: https://www.bbc.com/news/articles/c5y09q1zgg8o?at_medium=RSS&at_campaign=rss