President Trump has declared “total victory” after an appeals court Thursday threw out Judge Arthur Engoron’s egregious multimillion penalty in the New York civil fraud case.
A five-judge panel of New York’s Appellate Division unanimously ruled that the fine—originally set at $355 million plus interest—was “excessive” and unconstitutional under the Eighth Amendment. According to Trump, the penalty with interest had surged to over $550 million.
“TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!” Trump said in a statement posted on Truth Social. “I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State. Others were afraid to do business there. The amount, including Interest and Penalties, was over $550 Million Dollars.”
Judges Dianne T. Renwick and Peter H. Moulton wrote that “the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution.”
The panel came to the decision after deliberating for nearly 11 months.
Trump posted a $175 million bond in April 2024, preventing James from being able to freeze his bank accounts and seize his properties until his appeals were heard.
That sum will now be repaid to the Trump Organization, Newsweek reported.
New York Attorney General Letitia James filed a sweeping civil fraud lawsuit in 2022 against Donald Trump, the Trump Organization, and his adult sons, Donald Trump Jr. and Eric Trump, alleging they inflated property values to secure favorable loans and insurance terms. The case unfolded alongside Manhattan District Attorney Alvin Bragg’s separate prosecution of Trump on criminal charges, underscoring the breadth of legal challenges the former president faced in New York. The civil trial began in October 2023 and concluded in January 2024, with Judge Arthur Engoron ruling that Trump, Eric Trump, and Donald Trump Jr. engaged in persistent financial deception.
Engoron’s ruling also included business restrictions for Trump and his family:
Donald Trump was barred from running any New York company for three years, while Eric and Donald Jr. faced two-year bans from serving as corporate officers. The court required continued oversight of the Trump Organization through an independent compliance director and a court-appointed monitor, further constraining the family business. As Bragg pressed forward with his criminal hush money case in parallel, Trump denounced both efforts as politically motivated “witch hunts.”
While the financial penalty has been struck down entirely, the other sanctions reportedly remain on hold while appeals continue.
In his Truth Social post, Trump scorched the N.Y. judge and attorney General, calling Engoron a “Political Hack,” and James a “Trump Deranged Lunatic.”
Every single Dollar was thrown out, even the penalties imposed on us by the Corrupt Judge, one of the most overturned in History, Arthur Engoron. I wasn’t given a Jury and, during the course of the Trial, which lasted a long time, was not given one Ruling in my favor by this Political Hack, but worse than him, if that’s possible, was Letitia James, a Corrupt and Incompetent Attorney General who only brought this Case in order to hurt me politically.
She is a Trump Deranged Lunatic! They made me bond the outrageous sum, which never happened before, and which cost me Millions of Dollars a month. It should have never been allowed to happen, and everyone knew it!
The president’s younger son, Eric celebrated the news on X, writing: “Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!”
Donald Trump Jr. posted on X: “Massive Win!!! New York Appeals Court has just THROWN OUT President Trump’s $500+ Million civil fraud penalty! It was always a witch hunt, election interference, and a total miscarriage of justice… and even a left leaning NY appeals court agrees! NO MORE LAWFARE!”
George Washington University Law Professor Jonathan Turley foreshadowed today’s ruling in a February, 2024, post criticizing Judge Ergon’s judgement. “The excessive fine and its basis raise serious statutory and constitutional questions,” Turley had written in a New York Post oped. “Many of us believe it should be substantially reduced or tossed out entirely.”
The professor wrote on X, Thursday: “The grotesque award of Judge Engoron will stand as the pinnacle the lawfare in New York—the utter abandonment of both any reason or restraint in the pursuit of political adversaries.”
Article III Project’s Mike Davis had a message for New York’s AG: “Lawyer up, Big @TishJames. Justice is definitely coming. Nobody is above the law. Sweetheart,” Davis posted on X, following the ruling.
Letitia James is now facing multiple investigations into potentially illegal professional and private conduct.
Earlier this month, U.S. attorney in Albany, Daniel Hanlon, issued two subpoenas to James, the first one related to the civil fraud case against President Trump. The Justice Department reportedly believes her prosecution of Trump violated his Constitutional rights.
The second subpoena was related to her office’s long-running effort to dissolve the National Rifle Association (NRA).
Additionally, in May, the Department of Justice launched a formal criminal investigation into James over mortgage fraud allegations involving her properties in Norfolk, Virginia and Brooklyn, New York.
AG Bondi appointed Associate Deputy Attorney General Ed Martin as Special prosecutor to investigate that case, as well as similar allegations against Sen. Adam Schiff (D-Calif.).
President Trump’s entire statement reacting to the decision below:
TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case! I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State. Others were afraid to do business there. The amount, including Interest and Penalties, was over $550 Million Dollars. It was a Political Witch Hunt, in a business sense, the likes of which no one has ever seen before.
This was a Case of Election Interference by the City and State trying to show, illegally, that I did things that were wrong when, in fact, everything I did was absolutely CORRECT and, even, PERFECT. Every single Dollar was thrown out, even the penalties imposed on us by the Corrupt Judge, one of the most overturned in History, Arthur Engoron. I wasn’t given a Jury and, during the course of the Trial, which lasted a long time, was not given one Ruling in my favor by this Political Hack, but worse than him, if that’s possible, was Letitia James, a Corrupt and Incompetent Attorney General who only brought this Case in order to hurt me politically.
She is a Trump Deranged Lunatic! They made me bond the outrageous sum, which never happened before, and which cost me Millions of Dollars a month. It should have never been allowed to happen, and everyone knew it! Importantly, the Vote was 5 to 0. I am so honored by Justice David Friedman’s great words of wisdom, which should be read by everyone. I would also like to thank the Court for having the Courage to make this Decision, which is already going down as one of the worst business persecutions in the History of our Country.
Sadly, there are other Cases against me that are equally disgraceful, including those headed up by Corrupt Judges, like Juan Merchan, whose daughter collected Millions of Dollars in Fees from Crooked Joe Biden and Kamala Harris, while her father shockingly REFUSED TO RECUSE himself from a vicious and corrupt trial, which is also under Appeal, one in which every Legal Pundit in New York said, “THERE WAS NO CASE!” — Even Editorial Boards said, “DO NOT DO THIS!” Judge Merchan gave me an unprecedented Gag Order, not letting me talk about him or his daughter, or the fact that the Appellate Judges thought he should not be doing the Case, but he did it anyway.
Many Lawyers said that his daughter and him created the Greatest Conflict of Interest they had ever seen. Judge Lewis Kaplan, the other remaining Case, whose wife, family, and friends attended his two trials, is as mean and nasty as anyone I have ever met. That Case, also on Appeal, should also never have been brought, and he should be admonished for Abuse, and every other thing that can be thrown at a Corrupt Judge. He loved the publicity, and would not let us present the irrefutable evidence that we wanted to present. This Clinton appointed Judge should not be allowed to get away with this SCAM….