Donald Trump's $465 million civil fraud penalty tossed out by New York court
Add Axios as your preferred source to
see more of our stories on Google.
Former U.S. President Donald Trump appears in Manhattan Criminal Court on May 30, 2024 in New York City. Photo: Steven Hirsch-Pool/Getty Images.
A state appellate court in New York threw out President Trump's roughly $465 million fine in his civil fraud case Thursday morning.
Why it matters: The court decision finding that Trump inflated his wealth on financial statements was one of the few legal cases that wasn't stalled or dismissed as a result of Trump's presidential victory.
Driving the news: The court was split on several aspects of New York Judge Arthur Engoron's decision in the case, but agreed to toss the massive fine against the president because it was too big to justify.
- "While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State," the ruling said.
- New York Attorney General Letitia James could continue to pursue the fine by appealing the justices ruling to the state's highest state court.
- James' office did not immediately respond to Axios' request for comment.
Catch up quick: Judge Engoron found Trump liable for financial fraud in 2023, and a jury later determined the penalties the president and his business associates would need to pay.
- The president was ultimately barred from running a business in the state as an officer or director for three years, in addition to paying a $364 million fine that accumulated interest every day.
- The president's co-defendants, including his sons, Eric Trump and Donald Trump Jr., also joined the appeal.
Zoom out: The president had been indicted in four different cases across state and federal courts prior to the 2024 election, and could have faced jail time if he hadn't won the presidency.
- Justice Department protocol prohibits the prosecution of a sitting president, so Special Counsel Jack Smith began winding down his two federal criminal cases against Trump last November.
- The president was criminally convicted on all 34 felony counts of falsifying business records in connection to a $130,000 hush money payment to adult film actress Stormy Daniels in 2023.
- Earlier this year, a New York judge granted the president an unconditional discharge for the hush money conviction, releasing him from the responsibility of paying the fees.
What they're saying: "It was a Political Witch Hunt, in a business sense, the likes of which no one has ever seen before," Trump said in a lengthy post on Truth Social celebrating the ruling.
- The president then suggested without evidence that the case had been an example of election interference, before calling other cases against him, such as the hush money decision, "equally disgraceful" and led by "Corrupt Judges."
Trump was represented in trial and on appeal by Continental PLLC, a Miami-based boutique law firm that represented the then-former-president when many large practices refused to do so.
Go deeper: Trump appeals $364 million decision in N.Y. civil fraud case
Editor's note: This story has been updated throughout.
