Donald Trump Appeals $454 Million New York Civil Fraud Judgment
Former President Donald Trump has appealed a recent civil fraud judgment in New York, challenging a judge’s ruling that he lied about his wealth while building his real estate empire. The judgment, which amounts to $454 million, threatens to deplete Trump’s cash reserves entirely. Trump’s lawyers have filed notices of appeal, asking the state’s mid-level appeals court to review the case and reverse the penalties imposed on the former president.
The appeal does not automatically halt the enforcement of the judgment. Trump has until March 25 to secure a stay, a legal mechanism that would pause the collection of the money while he appeals. To obtain a stay, Trump would need to put up money, assets, or an appeal bond that covers the amount he owes. Alternatively, his lawyers could ask the appeals court to grant a stay without a bond or with a lower bond amount.
As of now, it is unclear if Trump has posted an appeal bond or is in the process of securing one. His lawyers did not respond to inquiries regarding this matter. However, Trump’s lawyer, Alina Habba, issued a statement expressing confidence in the appeals court overturning the “egregious fine” and restoring public faith in New York’s legal system.
The original lawsuit, brought by New York Attorney General Letitia James, alleged that Trump and his company, along with top executives like his sons Eric and Donald Jr., engaged in a scheme to deceive banks and insurers by inflating his wealth on financial statements. Judge Arthur Engoron ruled in James’ favor on February 16, imposing strict limitations on the Trump Organization’s ability to conduct business.
If upheld, Engoron’s ruling would require Trump to pay $355 million in penalties. With interest, the total amount has now reached nearly $454 million, increasing by almost $112,000 per day until he pays. Trump maintains that he is worth several billion dollars and testified last year that he had about $400 million in cash, in addition to other assets and investments. If he is unable to pay, James has stated that she will seek to seize some of his assets.
Trump’s appeal was expected, as he had previously vowed to challenge the ruling. His lawyers had been preparing for this appeal by frequently objecting to Engoron’s handling of the trial. Trump himself referred to Engoron’s decision as “election interference” and claimed that he was being punished for his success in building a great company.
Christopher Kise, one of Trump’s lawyers, expressed the belief that the appeals court would correct the errors made by the trial court. However, if Engoron’s ruling is upheld, Habba warned that it would send a signal that “New York is no longer open for business.”
Trump’s ability to appeal the decision was delayed because the clerk’s office at Engoron’s courthouse needed to file a judgment to make it official. This step was completed on Friday, initiating a 30-day window for Trump to either pay the penalty or file an appeal and seek a stay. If Trump decides to pay the penalty at this stage, the money would be held in a court escrow account until the appeal is resolved.
During the trial, Trump’s lawyers accused Engoron of bias and objected to the legal mechanics of James’ lawsuit. They argued that the consumer-protection statute under which Trump was sued is typically used to address businesses that rip off customers. Trump’s lawyers have already challenged Engoron’s prior rulings at least 10 times in the Appellate Division, including an unsuccessful attempt to reverse a gag order and fines imposed on Trump for making false social media posts about a court staffer.
The Appellate Division now has the power to uphold Engoron’s verdict, modify the penalty, or overturn the decision entirely. If Trump is unsuccessful at this level, he can request that the state’s highest court, the Court of Appeals, consider taking his case.
This appeal is just one of the many legal challenges that Trump currently faces. He has been indicted on criminal charges four times in the past year, including accusations of plotting to overturn his 2020 election loss and hoarding classified documents. He is also scheduled to go on trial in Manhattan on March 25 for falsifying business records related to hush money payments made to Stormy Daniels, a porn actor. Additionally, Trump was ordered by a jury to pay $83.3 million to writer E. Jean Carroll for defaming her after she accused him of sexually assaulting her in the 1990s.
The appeal in the New York civil fraud case ensures that Trump’s legal battles will continue to be a central focus during the presidential primary season and beyond. As he seeks to secure the Republican presidential nomination and potentially retake the White House, the outcome of these legal challenges could have a significant impact on his political future.
