New York state lawyers are urging an appeals court to affirm a substantial civil fraud verdict against former President Trump, arguing that there is “overwhelming evidence” supporting the state judge’s finding that Trump and his associates conspired to falsify his net worth for financial benefits.
In a late Wednesday submission, the office of New York Attorney General Letitia James argued that Trump, his business, and senior executives used various deceptive tactics to misrepresent the value of Trump’s assets. The appeal, they claim, overlooks evidence of extensive fraud and wrongdoing.
Trump’s legal team criticizes fraud verdict as an “unauthorized power-grab” in new filing
“On appeal, the defendants disregard nearly all the evidence of their deceitful practices,” Assistant Solicitor General Daniel Magy wrote in the extensive 168-page filing. Trump’s legal team has reiterated arguments from the trial, suggesting that banks were eager to partner with the Trump Organization and conducted their due diligence, which found no fraudulent activity.
They criticized Judge Arthur Engoron’s imposing $464 million judgment, plus interest, as an “unauthorized, unprecedented power-grab,” insisting that there were “no victims and no losses” from the transactions.
Magy responded that in fraud cases under § 63(12), elements like reliance or victim losses are not required, as the focus is on disgorging ill-gotten gains and obtaining injunctive relief rather than compensatory damages. “One of the primary goals of § 63(12) is to safeguard the integrity of New York’s commercial environment by curbing fraudulent and illegal practices before they inflict widespread harm,” he noted.
The appeals court has set September 26 for hearing Trump’s appeal, just weeks before the presidential election in which Trump is set to run against Vice President Harris. Typically, the court issues its ruling about a month after oral arguments, so a decision could precede the election.
The financial penalties imposed, now exceeding $485 million including interest accruing at nearly $112,000 daily, could severely impact Trump’s wealth and reputation. Trump posted a $175 million bond earlier this year to suspend judgment collection and other penalties during the appeal.
This bond amount was reduced from the full judgment after Trump’s attorneys argued that the original sum was “impossible” to meet. The appellate court may choose to uphold, reduce, or overturn Engoron’s ruling. If the appeal fails, Trump has the option to request a review by the state’s highest court.
