Trump Challenges $454 Million Fraud Verdict in ‘Victimless’ Case

Former President Donald Trump asked a Manhattan appeals court to overturn the $454 million civil fraud verdict against him, arguing there were no victims in the case and that the ruling grants the New York attorney general “limitless power” to go after political foes.

Justice Arthur Engoron, who presided over the non-jury trial, issued the verdict in February after finding Trump and his sons Donald Trump Jr. and Eric Trump inflated the value of several properties, including the former president’s Trump Tower penthouse, year after year to get better terms from lenders.

Trump’s legal team filed a brief Monday night with an intermediate appeals court. The papers praised the former president and 2024 Republican nominee as “among the most visionary and iconic real estate developers in American history” and said “banks and lenders vied eagerly for his business.”

If Trump’s conduct constituted “fraud,” his lawyers said, “then that word has no meaning, and NYAG’s power to seize and destroy private businesses is boundless — and standardless.” They predicted the verdict would be a “disaster for New York,” as businesses flee from an attorney general targeting “victimless” transactions.

‘Excessive’ Punishment

According to the appeal brief, Engoron should have found that state Attorney General Letitia James’ case was barred by the statute of limitations. Trump’s lawyers also argued that the attorney general “lacks authority to dismantle purely private, highly successful, complex transactions between sophisticated parties represented by elite law firms, accountants, and other service providers that implicate no public interest.”

Trump has made many of these arguments before, frequently claiming the case brought by James, a Democrat, was politically motivated. At trial, he attacked Engoron as biased as well. The judge rejected several Trump arguments as “frivolous” and “repetitive.” The appeals court previously denied Trump’s bid to end the case on statute of limitations grounds.

In the brief, Trump further claimed the penalty issued by Engoron violated state and US constitutional guarantees against “excessive” punishments.

Trump posted a $175 million bond in April to prevent James’ office from seizing his assets while he appeals. The attorney general is scheduled to file her response to Trump’s brief next month while the appeals court said it would hear the challenge in September.

Engoron also barred Trump from running any business in the state for three years.

The case is New York v. Trump, 2023-04925, New York State Supreme Court, Appellate Division, First Department (Manhattan).

--With assistance from Erik Larson.

To contact the reporter on this story:
Patricia Hurtado in Federal Court in Manhattan at pathurtado@bloomberg.net

To contact the editors responsible for this story:
Anthony Lin at alin364@bloomberg.net

Peter Jeffrey

© 2024 Bloomberg L.P. All rights reserved. Used with permission.