New York Attorney General Letitia James issued a statement after an appeals court struck down the more than $500 million civil fraud penalty against President Donald Trump and two of his sons, while still affirming that he had engaged in fraud by inflating his wealth for years.
James said that although the massive penalty was thrown out, “yet another court has ruled that the president violated the law, and that our case has merit.”
James, a Democrat, spearheaded the lawsuit on behalf of New York, alleging that Trump repeatedly overstated the value of his businesses to secure loans and strike deals with banks, insurers, and other institutions.
Judge Arthur Engoron originally ruled in favor of James, finding Trump had misrepresented his wealth on official documents for years. Engoron ordered Trump, along with his sons Eric and Donald Jr., to pay more than $350 million in penalties.
With interest, that figure had swelled to about $572 million—an amount Trump’s attorneys called “draconian” and excessively punitive. They quickly appealed the ruling.
After nearly a year of deliberations, the appeals court tossed Engoron’s penalty but upheld his finding of fraud. The decision leaves open the possibility of further challenges before New York’s highest court, the Court of Appeals.
James said in her statement: “The First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud. The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers’ ability to do business in New York. It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit. We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers.”
Trump, who has maintained his innocence throughout, called the ruling a “TOTAL VICTORY,” praising the appeals court for “having the courage to throw out this unlawful and disgraceful decision.” Both Eric and Donald Jr. celebrated the outcome online.
On Truth Social, Trump wrote: “This was a Case of Election Interference by the City and State trying to show, illegally, that I did things that were wrong when, in fact, everything I did was absolutely CORRECT and, even, PERFECT. Every single Dollar was thrown out, even the penalties imposed on us by the Corrupt Judge, one of the most overturned in History, Arthur Engoron.”
Eric Trump posted on X: “Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!”
Donald Trump Jr. also wrote on X: “Massive Win!!! New York Appeals Court has just THROWN OUT President Trump’s $500+ Million civil fraud penalty! It was always a witch hunt, election interference, and a total miscarriage of justice… and even a left leaning NY appeals court agrees! NO MORE LAWFARE!”
He later mocked James’s recent updates about Trump’s supposed debt, replying: “I believe you mean $0.00. Thank you for your attention to this matter.”
James has pledged to appeal the decision. It remains unclear when the filing will be made or how long the next phase of litigation could take.
