Former President Donald Trump’s legal team on Thursday continued efforts to reverse or reduce a multi-million dollar civil fraud penalty.
Trump’s attorneys asked a New York appeals court to reconsider the judgment against the 45th president and his business, the Trump Organization.
The five-judge appellate panel heard arguments from both Trump’s lawyers and state prosecutors in New York. Although the panel did not issue a final ruling at the end of Thursday’s hearing, they appeared to express concern that New York Attorney General Letitia James may have overstepped her prosecutorial authority in the case.
“There has to be some limitation as to what the [attorney general] may do in these private transactions,” one justice told a lawyer for James.
Trump’s lawyers argued that James’s lawsuit was not within New York consumer protection laws and said there were never any victims or complaints from from lenders and insurers.
In addition to the attorney general’s authority, the panel questioned Deputy New York Solicitor General Judith Vale about the the penalty imposed by the judge who oversaw the case.
In February, New York Judge Arthur Engoron ruled that Trump, his company, and top executives deceived banking partners by falsely inflating his wealth on financial statements, including inflating real estate assets to get better loans.
Engoron initially ordered the defendants to pay $355 million in penalties. But that amount has now grown to $478 million due to accruing interest, Trump’s attorneys said.
Trump’s attorneys argued that the amount was “grossly excessive” and also said the statue of limitations means that most of the conduct at issue was too old.
Trump did not attend Thursday’s hearing.
The Case
The civil fraud lawsuit against Trump and his business executives, including his sons Eric Trump and Donald Trump, Jr., was launched by James in September 2022 following a three-year investigation.
“For years, Donald Trump engaged in massive fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization,” the attorney general said in a February 2024 statement. “While he may have authored the ‘Art of the Deal,’ our case revealed that his business was based on the art of the steal.”
Trump, the Republican nominee for the 2024 presidential election, has publicly denounced the case and repeatedly called it part of a larger, political witch hunt against him.
It remains unclear whether the appeals panel will reach a decision before Election Day. However, when the court finally makes a decision, it can still be appealed to New York’s highest appellate court.
Meanwhile, Trump had no planned scheduled campaign events on Thursday. He is set to rally supporters in Walker, Michigan, and hold a town hall in Warren, Michigan, on Friday while his Democratic rival, Vice President Kamala Harris, is scheduled to visit the southern border that day.