New York Appeals Court Overturns $464 Million Civil Fraud Judgment Against Donald Trump, Reversing Earlier Ruling That Found He Inflated Property Values to Secure Loans and Insurance Benefits

NEW YORK — A New York appeals court on Thursday overturned a \$464 million civil fraud judgment against former President Donald Trump, reversing a February 2024 ruling that had found him liable for inflating his net worth to secure favorable financial terms.

The Appellate Division, First Department, vacated the penalty imposed by Manhattan Supreme Court Justice Arthur Engoron, who had ruled that Trump exaggerated the value of properties such as his Trump Tower triplex and Mar-a-Lago estate between 2011 and 2021 to obtain loans and insurance benefits. With interest, the judgment would have required Trump to pay more than \$500 million.

The 11-week trial revealed that Trump listed his Trump Tower apartment as 30,000 square feet, almost three times its actual size of 11,000 square feet. This exaggeration increased the property’s reported value from $80 million in 2011 to $327 million in 2015. Prosecutors also highlighted a 2020 financial statement where Trump valued Mar-a-Lago at $517 million, while his tax adviser had assessed it at only $27 million, labeling it a “social club” to gain tax advantages.

Justice Engoron described Trump’s financial statements as fraudulent, writing that the “frauds found here leap off the page and shock the conscience.”

During appellate arguments, some judges questioned the scope of the case brought by New York Attorney General Letitia James, particularly the application of laws that do not require proof of direct harm. Judge Peter Moulton called the size of the penalty “troubling.”

James, a Democrat, filed the lawsuit in 2022, stating that Trump misled financial institutions and distorted market integrity. Trump’s attorneys countered that the case had no victims, noting that lenders such as Deutsche Bank conducted independent assessments and were repaid in full.

Trump, who is campaigning for another presidential term, has denied wrongdoing and characterized the proceedings as politically motivated. He previously posted a \$175 million bond while pursuing appeals.

The case may now proceed to the New York State Court of Appeals, the state’s highest court, for further review.

Source: nypost.com