President Donald Trump won a massive reprieve in his New York civil fraud case that could have jeopardized his real estate empire.
An appeals court tossed the $515 million penalty imposed last year by Judge Arthur Engoron, calling the fine “excessive” and a violation of the Constitution’s ban on excessive punishment, the Associated Press reported.
Engoron found Trump inflated asset values on financial statements given to lenders and insurers, ordering him to pay $355 million plus interest — a sum that ballooned over half a billion dollars. Trump’s sons and Trump Organization executives Eric and Donald Jr. were also hit with penalties, bringing the total above $527 million.
While the appeals panel upheld injunctive relief meant to restrain Trump Organization practices, it scrapped the massive disgorgement order entirely, dealing a blow to Attorney General Letitia James, who described the case in February as proof of Trump’s “lying, cheating, and staggering fraud.” Her office had no immediate comment, according to the Associated Press.
Engoron’s other penalties, including barring Trump and his sons from serving as corporate officers, remain on pause pending further appeals. Trump kept collection at bay with a $175 million bond. The decision, nearly 11 months after oral arguments, leaves James the option to appeal to New York’s highest court.
Just last week, the Justice Department subpoenaed James in connection with the landmark civil fraud lawsuit while separately investigating James’ own real estate transactions.
James’ lawyer said the investigation was “the most blatant and desperate example of this administration carrying out the president’s political retribution campaign.”
One investigation linked to the alleged retribution campaign is examining whether James falsified records for homes she owns in Brooklyn and Virginia, worth under $2 million combined, to obtain better loan terms.
Accusations around mortgages are becoming a calling card of the Trump administration. Trump recently called on Federal Reserve Governor Lisa Cook to resign, according to Bloomberg, after Federal Housing Finance Agency director Bill Pulte told Attorney General Pam Bondi to investigate Cook’s mortgages.
The Department of Justice is set to investigate Cook, echoing probes into James and frequent Trump critic Adam Schiff, a senator from California.
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