Trump appeals enormous half-billion judgment in N.Y. civil fraud case

Lawyers for Donald Trump appealed the nearly half-billion dollar penalty in his New York civil fraud case on Monday, arguing the former president and 2024 Republican nominee is one of the most “visionary and iconic real estate developers in American history” whose lies about his net worth made banks richer. 

Attorneys for Trump, his sons Eric and Don Jr., and former top executives at the Trump Organization — Allen Weisselberg and Jeffrey McConney — asked a midlevel appellate court to overturn the ruling by Manhattan Supreme Court Justice Arthur Engoron that determined they committed crimes running his real estate empire by vastly exaggerating his net worth to get fruitful terms in business deals. They argued the mammoth penalty was excessive, the claims brought by state Attorney General Letitia James were time-barred and that the case had no victims. 

“The economic aspects of this decision are a disaster for New York,” lawyers Chris Kise, Cliff Robert, Alina Habba and others wrote. “Appellants’ business partners made over $100 million in profits and reaped extensive benefits from their relationship with Appellant President Donald J. Trump … They raved internally about their business with him and were eager for more.”

Engoron in February found Trump and his crew civilly liable for breaking multiple state laws — including falsifying business records, issuing false financial statements, conspiring to commit insurance fraud, and other related offenses — by ballooning the value of properties like Trump Tower, 40 Wall St., and Mar-a-Lago, Fla. The judge rejected defense arguments that the lies to banks had no victims, and the conduct was standard in the industry — finding that was “all the more reason to strive for honesty and transparency and to be vigilant in enforcing the rules.”

The judge ordered Trump and his crew to pay around $464.6 million — including interest that’s accruing daily — and most of the total owed by the former president. He temporarily barred Trump and his sons from operating a New York business and permanently banned McConney and Weisselberg, Trump’s longtime moneyman who completed a second stint in jail stint this week after pleading guilty to lying under oath at the trial. 

Trump has deposited $175 million to ward off his properties being seized as he appeals the judgment and is separately trying to get Engoron booted from the case based on allegations that he improperly discussed the case with a lawyer at work.

In a statement, Kise said the appeal seeks reversal of Engoron’s “legally bereft decisions,” and accused him of having “willingly allowed a reckless, politically motivated attorney general to meddle in lawful, private and mutually profitable transactions.”

“President Trump therefore today asks the Appellate Division to rescue the rule of law and to correct the innumerable and catastrophic errors made by a trial court untethered to the law or to commercial reality,” Kise stated. 

The AG’s office is set to oppose the effort by late August, and the appeals court is expected to hear arguments in late September. 

“Once again, the defendants are raising arguments that they were already sanctioned and fined for. We won this case based on the facts and the law, and we are confident we will prevail on appeal,” a spokesperson for the AG said.

In addition to the fraud judgment, Trump owes around $88 million to columnist E. Jean Carroll, who a jury and judge respectively determined that Trump sexually attacked and defamed last year. Trump is appealing both outcomes.

He could face another costly financial penalty — or potential jail time — before the election following his criminal conviction in May for the 2016 hush money scheme if his motion to get the conviction thrown out fails ahead of sentencing set for Sept. 18. 

Originally Published: July 22, 2024 at 9:47 p.m.