New Delhi: A New York appeals court has struck down a half-billion-dollar penalty imposed on former US President Donald Trump in a civil fraud case, ruling that the punishment was excessive.
The fine was originally set at USD 355 million by Judge Arthur Engoron, who found that Trump had grossly inflated the value of his company’s assets to secure favorable loans. With interest added, the penalty had ballooned to more than USD 500 million (£372 million).
On Thursday, a panel of five judges from the Appellate Division of the New York Supreme Court agreed that Trump was responsible for fraudulent practices but concluded the size of the penalty likely violated constitutional protections against disproportionate punishment.
The ruling also revisited restrictions imposed by Judge Engoron, which had barred Trump from serving as a company director or applying for loans from New York banks for three years.
The case was brought by state Attorney General Letitia James, who accused Trump, his two adult sons, and the Trump Organization of engaging in “persistent and repeated fraud.” While most judges said James acted within her authority, one argued the lawsuit should have been dismissed, and two others called for a narrower retrial. Those two, however, joined the decision to cancel the penalty “to ensure finality,” according to Judge Peter Moulton, who authored the 323-page opinion.
Judge Moulton noted that voters had already “rendered a verdict” on Trump’s political career, adding that the ruling “derails the effort to destroy his business.”
Eric Trump, who was also named in the lawsuit, hailed the decision on social media, calling it a “total victory” and claiming that “after five years of hell, justice prevailed.”