Former President Donald Trump and his legal team are appealing a judge’s ruling from February that found Trump and his company committed hundreds of millions of dollars in fraud. They argue that the $454 million judgment is excessive and violates New York case law. Judge Arthur Engoron had determined that Trump and his company, along with top executives, deceived banks and insurers by inflating Trump’s wealth on financial statements, resulting in favorable deal terms they did not deserve. The Trumps were found to have benefited by $354 million through these deceptive practices.
The appeal filed by Trump’s attorneys on Monday reiterated arguments made during the lengthy bench trial in 2023. They claimed that allegations from New York Attorney General Letitia James were beyond the statute of limitations and involved deals without victims or losses. Trump’s lawyer Christopher Kise accused Engoron of ignoring undisputed facts and allowing a politically motivated Attorney General to interfere in lawful transactions. The appeal also argued that James’ office lacked standing under New York law to bring the fraud suit against Trump and his company, a claim that had been rejected multiple times by courts.
In response to the appeal, a spokesperson for Letitia James referenced the $7,500 sanctions imposed on five of Trump’s lawyers for repeatedly making frivolous arguments. James’ office remains confident in their case and believes they will prevail on appeal based on the facts and the law. Engoron’s scathing ruling in February had criticized Trump and the other defendants for their lack of contrition and remorse, characterizing their behavior as bordering on pathological. He described the frauds in the case as shocking and emphasized the defendants’ refusal to take responsibility or implement measures to prevent future occurrences.
During the trial, Trump had testified that any misvaluations of his properties or wealth were due to undervaluations rather than overvaluations. He shifted blame onto his accountants for the misleading financial statements central to the case. Engoron concluded that Trump and his company had provided the accountants with blatantly false financial data, which was repeatedly denied by the defendants’ witnesses during the trial. The judge expressed outrage at the frauds detailed in the case, noting that they were evident throughout the documents and demanded accountability from the defendants.
The legal battle between Trump and the New York Attorney General’s office is expected to continue, with James’ office preparing to respond to the appeal in August. An appellate court will review the case during its fall term, where the arguments and evidence presented by both sides will be examined further. The outcome of the appeal will determine the fate of the fraud judgment against Trump, his company, and top executives, as well as the implications for future enforcement of financial regulations and accountability for deceptive practices in the business world.
