New York Court Upholds Trump Fraud Liability, Tosses $500M Penalty

A New York appeals court recently vacated the nearly $500 million civil fraud penalty imposed on President Donald Trump and his companies for inflating property values, ruling the fine excessive and in violation of the Eighth Amendment. Despite overturning the financial penalty, the court upheld findings that Trump and his organization engaged in fraud, maintaining liability and allowing the case to proceed to further appellate review. The decision was not unanimous, with three judges favoring vacating the penalty while two upheld the fraud ruling, highlighting a rare judicial split. President Trump celebrated the ruling as a "total victory" on social media, inaccurately claiming a unanimous decision and full dismissal of the case, and alleging political motives behind the prosecution. Meanwhile, legal experts and media reports emphasize that the court's decision stops short of exonerating Trump, affirming the state's authority in pursuing the case and condemning the fraudulent conduct. The original penalty stemmed from findings of "blatantly false financial data" and a "lack of contrition," with Judge Arthur Engoron describing the fraud as "shocking the conscience."