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Appeals Court Overturns $527 Million Civil Fraud Penalty Against Trump
In a major legal victory for President Donald Trump, a New York appellate court has thrown out the massive $527 million civil fraud penalty imposed on him, his two eldest sons, and the Trump Organization. The five-judge panel ruled that the fine — originally ordered by Judge Arthur Engoron in 2024 — was “excessive” and violated the Eighth Amendment’s prohibition on excessive fines.
While the court upheld findings that Trump had exaggerated his wealth and inflated property values for years, it concluded that the financial penalty was disproportionate to the alleged gains. The ruling leaves in place a temporary ban preventing Trump, Donald Trump Jr., and Eric Trump from serving in corporate leadership roles for several years.
New York Attorney General Letitia James, who brought the case in 2022, has the option to appeal the decision to the state’s highest court. Trump celebrated the outcome as a “total victory,” calling the original judgment politically motivated.
The decision spares Trump from one of the largest financial penalties ever levied in a civil fraud case, though his legal battles on multiple fronts continue.
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