A New York appeals court has dramatically reduced former President Donald Trump’s civil fraud penalty, throwing out the original $464 million fine as “excessive” while still upholding the ruling that he fraudulently inflated his wealth.
Key Developments:
✔ Original Ruling: Feb 2024 – Judge Engoron found Trump guilty of fraud (inflating asset values for loans)
✔ Appeals Court Decision:
- Upheld guilty verdict
- Overturned $464M penalty as unconstitutional (“excessive” under 8th Amendment)
- 3-year business ban remains under review
✔ Trump’s Response: “Total victory!” – Claims “political witch hunt” defeated
Why This Matters
• Financial Relief: Trump avoids massive payout during campaign
• Legal Precedent: Courts questioning scale of NY business penalties
• Political Impact: Fuels Trump’s “witch hunt” narrative ahead of election
What’s Next?
→ AG Appeal: Letitia James may take case to NY’s highest court
→ Penalty Recalculation: New fine amount to be determined
→ Business Ban: 3-year prohibition still pending final ruling
