Trump Appeals Court Ruling in $464M Fraud Case

Representatives for former President Donald Trump have filed a brief in the New York Court of Appeals. They argue the court should dismiss the liability finding in a $464 million civil fraud case focused on Trump’s real estate valuations.

The appeal claims the case contained legal flaws that should have prevented its progression. “This case should never have been brought, and the judgment cannot stand,” it asserts. It describes the situation as unusual, citing improper statements targeting Trump, his family, and his businesses. It challenges the application of New York law as unprecedented and unlawful.

This appeal marks another instance of Trump responding to what he terms politically motivated legal actions endured during his time in office. He seeks to address some penalties from the initial verdict.

Attorney General Letitia James speaks at a news conference following a verdict against Trump in a civil fraud trial, Feb. 16, 2024, in New York City. (Michael M. Santiago/Getty Images)

In 2022, New York Attorney General Letitia James sued Trump for 200 counts of fraud. Her office alleged he inflated property values in New York City to secure better loan or insurance terms, breaching New York Executive Law § 63(12). This law directs the attorney general to prosecute cases of continuous fraudulent or illegal actions. Fraud is defined as various forms of deception and misrepresentation.

Trump was found liable in 2023. Consequently, he had to pay $355 million plus interest and faced bans from serving as an officer or director in any New York company for two years, and from applying for loans from New York banks for three years. An intermediate appeals court later vacated the monetary award, but Trump’s lawyers argue for overturning the underlying liability finding and remaining restrictions.

Trump speaks as he leaves the courtroom during his civil fraud trial in New York Supreme Court, Jan. 11, 2024. (Michael M. Santiago/Getty Images)

The appeal challenges the verdict on five primary points. It argues that Attorney General James lacked authority as the case involved private commercial transactions, not public harm. It claims Trump’s valuations were subjective estimates, independently evaluated by lenders.

The appeal states, “The only supposed ‘victims’ are sophisticated banks and insurers who never claimed injury, were eager to do business with Trump, and profited over $100 million from these transactions.” It challenges the prosecution’s assertion of overvaluation based on the mistaken belief that real estate has a singular objective value.

The appeal argues that the $450 million disgorgement is excessive, unlawful, and unconstitutional. It also contends that the case’s political nature should have halted its consideration.

It claims, “NYAG has no Section 63(12) enforcement actions against similarly situated developers based on comparable practices.” The document highlights James’ alleged pre-trial statements targeting Trump, his business, and his family.

James’ office has not yet responded to a comment request from Fox News Digital.

Leo Briceno is a politics reporter for Fox News Digital’s congressional team. He previously reported for World Magazine.