New York Attorney General Letitia James issued a statement after an appeals court overturned the more than $500 million civil fraud penalty against President Donald Trump and two of his sons, while still upholding a finding that he engaged in fraud by inflating his wealth over decades.
James responded by noting that even though the penalty was dismissed, “yet another court has ruled that the president violated the law, and that our case has merit.”
Why It Matters
James, a Democrat, spearheaded the case on behalf of New York, alleging that Trump and his companies artificially inflated their value to secure favorable loans and strike deals with banks, insurers, and other institutions.
Judge Arthur Engoron initially ruled in favor of the state, concluding that Trump had misrepresented his wealth for years. He ordered Trump and other defendants—including his sons Eric and Donald Jr.—to pay over $350 million in penalties.
What To Know
With interest added, that figure had grown to roughly $572 million, which Trump’s attorneys argued was “draconian” and excessively punitive. They quickly appealed.
The appeals court ultimately struck down Engoron’s penalty in its entirety, though it left room for a further challenge before New York’s highest court, the Court of Appeals. The panel took nearly a year to issue its decision after hearing oral arguments last fall.
James noted 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.”
She added, “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.”
She also vowed: “We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers.”
Trump, who has consistently denied wrongdoing, celebrated the ruling as a complete vindication. He declared “TOTAL VICTORY” and praised the court for having “the courage to throw out this unlawful and disgraceful decision.” His sons echoed that sentiment in their own posts on social media.
What People Are Saying
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 celebrated 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!”
Later, he retweeted one of James’s recent updates on the case, adding: “I believe you mean $0.00. Thank you for your attention to this matter.”
What Happens Next
James has pledged to appeal, though it remains unclear when she will file or how long the next phase of litigation may take.
