NY Appeals Court Overturns $500M Trump Fraud Fine, Upholds Liability

A New York appeals court has overturned the roughly $500 million civil fraud penalty against President Donald Trump while upholding the finding that he and his business engaged in fraudulent inflation of asset values for financial gain. The court ruled that although Trump and his co-defendants—including his sons Donald Jr. and Eric—committed fraud by exaggerating property values to secure favorable loans, the penalty imposed was excessive and unconstitutional under the ban on disproportionate fines. The decision was split among the judges, with some calling for a new trial and others dissenting entirely, highlighting the case's legal complexity. New York Attorney General Letitia James has vowed to appeal the ruling, emphasizing the importance of enforcing accountability regardless of status. Trump declared the outcome a "total victory," while Eric Trump called it the "biggest victory in the world." The case continues to have wider implications for how aggressively state officials can pursue corporate fraud enforcement.