New York AG to appeal ruling tossing Trump’s $454M civil fraud penalty

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New York Attorney General Letitia James will appeal a ruling that tossed out the half-billion-dollar penalty against President Donald Trump as part of the guilty verdict in his civil fraud case.

In a filing to the Court of Appeals, James signaled that her office will ask the panel of judges to overrule the lower court’s decision and reinstate the penalty while upholding the finding that Trump, his eldest sons and his business were liable for a decade’s worth of business fraud.

The notice filed by James’s office late Thursday doesn’t outline arguments as to why the lower court’s decision should be reversed, which will be detailed in future court filings.

Last month, the First Judicial Department of the New York State Appellate Division issued a ruling keeping in place non-monetary penalties imposed by a lower court on now-President Trump and his company, but said the more than half-billion-dollar fine imposed as part of the guilty verdict is “excessive” and violates the Eighth Amendment of the U.S. Constitution.

That court said the fine violated the U.S Constitution’s Eighth Amendment, which prohibits “excessive fines” but the five-member panel was deeply divided over Trump’s appeal.

Some judges said they were in favor of upholding the fraud ruling but dismissing the fines, others in favor of ordering a new trial, and at least one who would have dismissed the case entirely.

A lawsuit against Trump and his company by James alleged that Trump overvalued his properties on financial statements between 2014 and 2021 by hundreds of millions of dollars, which deprived the state and New York City of tax revenue.

In February 2024, Manhattan Supreme Court Judge Arthur Engoron ordered Trump and his organization to pay around $454 million in penalties after finding him liable for business fraud. With interest, the fines were expected to reach more than $500 million. At the time, Trump was running for president.

James, a Democrat first elected in 2018, has been a frequent critic of Trump and, in addition to the civil fraud trial, has filed several multistate lawsuits against the Trump administration over federal immigration policies, rollbacks in federal funding, and worker layoffs and other actions.

Earlier this month, the Justice Department subpoenaed James to investigate whether she violated Trump’s civil rights during his fraud trial. The federal government is also investigating her for allegations of mortgage fraud.

A Trump spokesperson issued a statement criticizing James for waging a “political crusade” against Trump and inflating the value of his properties to win the court case.

“Tish James should focus on her own problems and stop wasting New York State taxpayers’ hard earned dollars on her failed Witch Hunt against President Trump, his family, and the magnificent business that he built,” the spokesman said.

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