USA Trump Wins Appeal as $500M Fine Dismissed, Fraud Liability Stand

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An appeals court has dismissed the $500 million penalty against President Donald Trump from last year’s New York civil fraud trial.

 

Judge Arthur Engoron initially imposed a fine due to inflated property valuations by the Trump Organisation for advantageous loans. However, the appellate judges ruled the penalty as excessive, stating it might breach constitutional safeguards against severe punishment.

 

Judge Engoron had set Trump's penalty at $355 million, a figure with interest that soared over $500 million. Judge Peter Moulton commented that, although harm occurred, it was not substantial enough to justify such a large fine.

 

Trump hailed the decision as a "total victory" on his social platform, Truth Social, calling the initial ruling a "political witch hunt".

 

The New York Attorney General's Office, which prosecuted the case, also claimed a win. While the fine was dropped, Trump's liability for fraud was confirmed, and other non-financial penalties remained. The AG’s office plans to appeal the fine decision to New York's highest court.

 

In the fraud case, restrictions were placed on Trump, including a ban on serving as a company director or acquiring bank loans in New York for three years. These restrictions remain intact despite the ruling.

 

The appellate decision, spanning 323 pages, displayed internal disagreements among judges about the lawsuit's validity. While some supported it, one judge believed it should have been dismissed, and two advocated for a new, trimmed trial.

 

Ultimately, the judges set aside the fine "for the sole purpose of ensuring finality," aligning with Judge Moulton’s perspective that Trump's political verdict was determined by voters.

 

The ruling follows September 2023's liability finding against Trump for business fraud, with accusations of asset value inflation, reported the BBC.

 

Eric Trump, involved in the case, expressed relief on social media, celebrating that "justice prevailed."

 

Experts suggest the decision delays the final judgement, as the New York Court of Appeals now awaits. In this historic case involving a sitting president, the outcome remains open.

 

  Adapted by ASEAN Now from BBC 2025-08-22