The appellate court has expressed serious concerns regarding the $454 million verdict in Donald Trump’s fraud case. Legal expert Greg Germain, a law professor at Syracuse University, stated that Trump has a strong case to challenge Judge Arthur Engoron’s ruling that he must pay $454 million for inflating the value of his assets. The First Department of the Appellate Division of the New York Supreme Court reduced the bond Trump must post to $175 million and gave him an additional 10 days to raise the payment.
If Trump is able to raise the money, the court will put a stay on any enforcement proceedings against his assets while he appeals the fraud judgment. Germain noted that the reduction in the bond amount shows the appellate court’s concerns about the validity of Judge Engoron’s decision. While Germain believes Trump has little chance of overturning Engoron’s factual findings, he also believes Trump has strong legal arguments to challenge other aspects of the ruling, such as the calculation of the disgorgement amount and the interpretation of New York law regarding misleading statements.
The case against Trump began in September 2022 when New York Attorney General Letitia James sued Trump, his sons, the Trump Organization, and two firm executives for inflating assets to secure more favorable business loans. Following a trial that took place from late 2023 into early January, Engoron ruled on February 16 that Trump must pay approximately $454 million in penalties and interest. To appeal the fraud ruling, Trump must pay the full amount of the penalty, which his lawyers stated would be 120 percent of the judgment, or more than $557 million.
As part of Engoron’s ruling, Trump, Weisselberg, and McConney would be prohibited from serving as officers or directors of any New York corporation or legal entity in the state for three years. Donald Trump Jr. and Eric Trump were ordered to pay over $4 million each and were barred from conducting business in the state for two years. Trump has consistently maintained his innocence in this case and claims that the legal actions against him are politically motivated.
While Trump may face challenges in overturning certain aspects of Judge Engoron’s ruling, there are still strong legal arguments that he can raise on appeal. The reduction in the bond amount by the appellate court suggests that there are concerns about the validity of the original judgment. Despite facing significant financial penalties and restrictions on business activities, Trump continues to assert his innocence in the case and accuses the legal system of targeting him for political reasons. The outcome of his appeal will determine whether he is able to avoid paying the full $454 million judgment for fraud.
