High-Profile Appeal: Trump Challenges Massive Judgment in New York

Donald Trump’s legal team has taken a $489 million civil fraud verdict to the New York appeals court, seeking to overturn what they deem an excessive and legally flawed judgment.

At a Glance

Trump’s legal team appeals a $489 million civil fraud ruling in a New York court.
The penalty is viewed as excessive and purportedly rests on flawed legal reasoning.
Some justices expressed skepticism about the judgment’s size.
If the appeal fails, Trump plans to take the case to the U.S. Supreme Court.

Trump’s Lawyers Challenge Court Ruling

On Wednesday, Donald Trump’s attorneys appeared in a New York appeals court to challenge a $489 million civil fraud judgment against their client. The former president’s legal team argued that the penalty is both excessive and rooted in flawed legal reasoning. John Sauer, representing Trump, described the judgment as “draconian” and asserted there were no direct victims of the alleged fraud.

Trump’s legal team is particularly critical of Judge Arthur Engoron, who issued the original ruling. They accuse him of bias and overstepping his authority in the decision. The state, on the other hand, stands by the judgment, arguing it represents Trump’s profits from fraudulent activities over seven years.

Ruling Based on Inflated Financial Statements

Prosecutors allege that Trump inflated his net worth by $800 million to $2.2 billion on financial statements annually to secure better terms in various transactions. New York’s Deputy Solicitor General, Judith Vale, contends that Trump’s fraudulent behavior resulted in unjust profits, justifying the hefty penalty.

The trial, which included testimony from 40 witnesses, ruled Trump, his company, and executives liable for falsifying records and committing insurance fraud. The financial penalties include nearly $364 million in ill-gotten gains and over $120 million in accrued interest.

Lawyers for Donald Trump and his company will argue to an appeals panel that it should throw out a judge's February ruling that Trump must fork over hundreds of millions of dollars in profit obtained through fraud, plus millions more in interest. https://t.co/JQrI7aBOjt

— CBS News (@CBSNews) September 26, 2024

Skepticism from the Justices

Some justices on the appellate panel appeared skeptical about the size of the penalty assigned to Trump. They questioned whether the law was being applied appropriately and if such an extensive financial punishment was justified.

If the appeals court upholds the judgment, Trump’s legal team indicated they would escalate the case to the U.S. Supreme Court. Trump’s defense has consistently condemned the judgment as a form of political interference, asserting that it’s an attempt to undermine his success and tarnish his reputation.

“In the past, Trump has decried the lawsuit’s outcome as ‘election interference’ and accused Engoron of punishing him for ‘having built a perfect company.'”

Upcoming Decisions and Future Actions

The Appellate Division’s decision is expected to come before the next Election Day. They have several options: uphold, reduce, modify, or overturn the initial ruling. If either side is unsatisfied with the appellate court’s decision, they may petition the state’s highest court for further review.

If Trump loses his appeal at all levels, the New York Attorney General can pursue seizing his assets to fulfill the court’s judgment. Notably, this civil case poses no risk of prison time for Trump, as it solely targets financial penalties and restitution.

Trump, who posted a $175 million bond to halt collection of the judgment during the appeal, maintains his innocence and continues to fight the civil penalties levied against him. His legal struggles in New York do not end with this case; other legal setbacks include a defamation lawsuit and a criminal trial for falsifying business records.