Donald Trump, the former U.S. President, is making a determined effort to reverse a $454 million civil fraud ruling in New York that poses a significant threat to his financial stability as he gears up for his third run for the presidency.
According to The Independent, the multi-million-dollar judgment was handed down by Justice Arthur Engoron in February. The ruling implicated Trump, his sons Eric and Donald Trump Jr, and senior executives at the Trump Organization, after it was found that they had deceived banks and insurers by exaggerating Trump's net worth to secure more advantageous loans.
Trump's legal team launched an appeal against the judgment on Monday, vehemently criticizing it as "egregious", "erroneous", and "draconian". They argued that the ruling granted New York Attorney General Letitia James "limitless power".
The appeal, a 95-page document filed with the Appellate Division of the state's trial courts, claimed that the judgment "violates centuries of New York case law". Trump's attorneys also contended that James, who initiated the civil lawsuit against Trump in September 2022, was attempting an "unauthorized, unprecedented power grab". They warned that failure to dismiss the judgment would grant the attorney general "limitless power to target anyone she desires, including her self-described political opponents".
Christopher Kise, Trump's attorney, stated that the appeal "seeks reversal of the trial courts legally bereft decisions". In response, James' office expressed confidence in their position, stating to The Associated Press, "We won this case based on the facts and the law, and we are confident we will prevail on appeal."
Justice Engoron, who presided over the civil fraud trial, ruled on February 16 that Trump must pay $355 million in penalties after he presented "blatantly false financial data" to secure favorable business terms. The judgment continues to accrue interest, with the total sum now exceeding $454 million. If the verdict stands, the sum will continue to grow by over $112,000 per day.
The ruling also imposed a three-year ban on Trump from running any New York company, while Eric and Don Jr were barred for two years. Trump's lawyers disputed these claims in Monday's filing, stating, "No party ever complained or alleged any default. Every loan payment was made on time, and all the loans were repaid in full some before they came due."
In April, Trump posted a $175 million bond to delay collection of the judgment and prevent James' office from seizing his assets during the appeal process. The bond was reduced from $464 million after his lawyers claimed it was a "practical impossibility" to raise the money.
Despite the ongoing legal battles, Trump, a Republican presidential candidate, insists that he is worth several billion dollars. Forbes' latest estimate places his net worth at $7.5 billion, ranking him among the top 500 wealthiest individuals globally.
Trump's appeal comes on the heels of a series of recent victories in his legal cases. On July 1, the Supreme Court ruled that the former president should have immunity from prosecution for "official acts" performed in office, further delaying his federal election interference case. This ruling also postponed his New York hush money trial sentencing to September 18. Then, on July 15, Florida Judge Aileen Cannon dismissed Trump's classified documents case, ruling that special counsel Jack Smith's appointment to the case was unconstitutional.
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