US Court Cancels $464m Civil Fraud Penalty Against Trump— Reports

US Court Cancels $464m Civil Fraud Penalty Against Trump— Reports

A U.S. appeals court on Thursday overturned a $464 million civil penalty imposed on former President Donald Trump after a judge ruled he had fraudulently inflated his net worth, calling the fine “excessive” but upholding the underlying fraud judgment.

The penalty had originally been handed down in February 2024 by Judge Arthur Engoron, at a time when Trump was campaigning for a return to the White House while also facing multiple criminal cases.

Engoron ordered Trump to pay the full $464 million, including interest, while his sons, Eric and Donald Jr., were fined more than $4 million each.

The court found that Trump and his company had illegally exaggerated the value of his assets to secure favorable bank loans and insurance terms.

In addition to the financial penalty, Trump was barred from operating any businesses for three years—a measure he denounced as a “corporate death penalty.”

On Thursday, the Appellate Division of the New York Supreme Court confirmed the fraud ruling but struck down the fine as unconstitutional, citing the Eighth Amendment’s prohibition of excessive penalties.

New York Attorney General Letitia James, who filed the case, now has the option of appealing to the state’s highest court, the New York Court of Appeals.

“New York Appeals Court has just THROWN OUT President Trump’s $500+ Million civil fraud penalty! It was always a witch hunt, election interference, and a total miscarriage of justice… and even a left leaning NY appeals court agrees! NO MORE LAWFARE!” he wrote on X.

Trump has consistently fought the judgment, arguing both the ruling and the penalties were politically motivated.

He accused President Joe Biden of driving the case, calling it “the weaponization of government against a political opponent leading in the polls.”

Because the case is civil, not criminal, Trump faces no prison time, though the financial penalties had continued to accumulate interest during his appeals.