Trump’s Appeal of Civil Fraud Judgment Heads to New York Appellate Court

A New York appeals court is set to hear arguments in former President Donald Trump’s effort to overturn a civil fraud judgment that threatens to disrupt his real estate empire and cost him nearly half a billion dollars. Trump, currently the Republican frontrunner for the 2024 presidential race, has not indicated any plans to attend Thursday’s hearing in Manhattan.

The Fight Against Fraud Allegations

The crux of the case lies in a ruling from Judge Arthur Engoron, who found that Trump and his organization had fraudulently inflated his net worth to secure favorable loans and deals over several years. Engoron’s decision was handed down after a 2½-month trial, during which 40 witnesses, including Trump himself, testified. The judge ruled that Trump and executives Eric Trump, Donald Trump Jr., Allen Weisselberg, and Jeffrey McConney were liable for falsifying financial records and engaging in insurance fraud.

The penalties imposed on Trump total $363.9 million, a sum now ballooning to over $489 million due to accumulating interest. Trump’s lawyers call Engoron’s verdict “egregious” and appeal for the appellate court to reverse it.

What the Appeal Will Address

Trump’s legal team is focused on overturning the judgment, arguing that the penalties are unjust and that some charges should be dismissed due to the statute of limitations. They further contend that New York Attorney General Letitia James improperly used a consumer protection statute against Trump for private business transactions.

Trump has denied the fraud allegations, claiming that no one was harmed and that the case represents political bias. His defense team argues that allowing the verdict to stand would give the attorney general’s office “limitless power” to target political opponents.

State’s Response

Conversely, the attorney general’s office maintains that the fraud was significant and supported by overwhelming evidence. According to state filings, Trump inflated his net worth by up to $2.2 billion a year, securing loans worth more than $500 million and earning $360 million in illegitimate profits. New York Attorney General Letitia James has been a key figure in the case, leading the state’s legal team in the fight against Trump’s appeal.

Assistant Solicitor General Daniel Magy emphasized that Trump’s appeal ignores key evidence of fraud. The state asserts that James acted well within her authority, as New York law permits action against fraudulent business practices, regardless of whether consumers or corporations are involved.

What’s Next?

The five-judge panel of the Appellate Division, First Judicial Department in Manhattan, will hear the case. Each side is allotted 15 minutes to present arguments, and the hearing is expected to be livestreamed.

A decision will likely come within a month of the arguments, just ahead of the 2024 election. If the verdict is upheld, Trump could be forced to pay the entire judgment. Trump has posted a $175 million bond to halt asset seizures while the appeal is pending.

Both sides can appeal the outcome to the state’s highest court, and Trump has vowed to fight the case to the U.S. Supreme Court if necessary. Should his appeals fail and he cannot pay, James has said the state will seek to seize Trump’s assets, a move that could significantly impact his business and political future.

Despite the civil nature of the case, which carries no risk of imprisonment, the outcome could have profound implications for Trump’s business empire and political aspirations, potentially reshaping the landscape of both.