New York Attorney General Letitia James vowed to appeal a court ruling that vacated President Donald Trump's $527 million fraud penalty on Thursday.
James issued a statement shortly after the Appellate Division, First Judicial Department of the New York State Supreme Court, tossed the civil penalty against the president, calling it "excessive."
The court, which was split on the merits of the lawsuit and the lower court's fraud finding, dismissed the penalty Judge Arthur Engoron imposed in its entirety while also leaving a pathway for further appeals to the state's highest court, the Court of Appeals.
"The First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud," James said in a statement. "The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers' ability to do business in New York. It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit.
"We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers," her statement concluded.
After finding Trump engaged in fraud by flagrantly padding financial statements that went to lenders and insurers, Engoron ordered him last year to pay $355 million in penalties. With interest, Trump's total penalty has climbed to more than $515 million. When combined with penalties against other Trump Organization executives, the sum now exceeds $527 million.
The appeals court, the Appellate Division of the New York State Supreme Court, took an unusually long time to rule, weighing Trump's appeal for nearly 11 months after oral arguments last fall. Normally, appeals are decided in a matter of weeks or a few months.
Trump denied wrongdoing. In a six-minute summation of sorts after a monthslong trial, Trump proclaimed in January 2024 that he was "an innocent man" and the case was a "fraud on me." He has repeatedly maintained that the case and verdict were political moves by James and Engoron, who are both Democrats.
Information from the Associated Press was used in this report.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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