Letitia James Appeals Ruling That Tossed Trump’s $500 Million Fraud Penalty To New York’s Highest Court

Attorney General Letitia James

New York Attorney General Letitia James is pressing forward in her high-profile case against former President Donald Trump.

On September 4, James filed a notice of appeal seeking to overturn an August 21 ruling by a Manhattan appellate court that struck down a $454 million civil fraud penalty, which, with interest, has now grown to more than $500 million.

The case now heads to the New York Court of Appeals, the state’s highest court, which will decide whether Trump and his co-defendants must pay the massive financial penalty. The appeal underscores James’ commitment to holding the former president accountable after a years-long legal battle over allegations that he inflated the value of his assets to secure favorable loan and insurance terms.

The August ruling by a five-judge panel was far from unanimous. While the appellate court upheld Judge Arthur Engoron’s finding that Trump repeatedly misrepresented his wealth, the judges split over the issue of penalties.

Some ruled that the half-billion-dollar fine violated the Eighth Amendment’s prohibition on excessive fines, while others suggested that trial errors warranted a new proceeding. One judge went further, stating he would have dismissed the attorney general’s lawsuit entirely.

Despite tossing out the penalty, the appellate decision left in place business restrictions against Trump in New York, including temporary limitations on his ability to operate within the state and oversight of the Trump Organization’s financial practices.

Trump celebrated the ruling as a “TOTAL VICTORY” in a Truth Social post, describing the case as a “political witch hunt.” James, however, argued that the appellate court’s findings affirmed that her office’s case had merit, noting that “yet another court has ruled that the president violated the law.”

The New York Court of Appeals will now have the final say on whether one of the largest civil fraud penalties in state history will stand.

The outcome carries significant implications not only for Trump’s financial future but also for the state’s power to enforce penalties in high-profile corporate fraud cases.