Politics / US News
NY AG James to Appeal Overturned $454M Fine in President Trump's Civil Fraud Case
James filed a notice of appeal late Thursday to the New York Court of Appeals
Tommy Flynn
September 6, 2025 - New York Attorney General Letitia James has filed an appeal to reinstate the massive $454 million penalty against President Trump that was recently tossed by an appellate court as unconstitutional, prolonging a case widely seen as politically motivated.
The case stems from James' 2022 lawsuit accusing President Trump, his Trump Organization, and family members of persistently inflating asset values on financial statements from 2011 to 2021 to obtain favorable loans and insurance deals, while understating them for tax advantages. James, a vocal critic who campaigned on targeting President Trump, claimed this deprived New York of revenue.
In a non-jury trial, Manhattan Supreme Court Judge Arthur Engoron ruled in February 2024 that President Trump was liable for civil fraud, imposing a $354 million base penalty that ballooned to over $454 million with interest, along with non-monetary sanctions like a three-year ban on leading New York businesses and independent monitoring of the Trump Organization. President Trump appealed, posting a bond to halt enforcement.
On August 21, 2025, the New York Appellate Division's First Department, in a divided 3-2 decision, upheld the fraud liability and non-financial penalties but struck down the monetary fine as "excessive" under the Eighth Amendment's prohibition on cruel and unusual punishments. Dissenting judges argued for a new trial or outright dismissal, highlighting flaws in the original proceedings.
James filed a notice of appeal late Thursday to the New York Court of Appeals, the state's highest court, seeking to reverse the Appellate Division's ruling on the fine while affirming the liability findings. Full arguments will follow in subsequent briefs. President Trump's team is expected to cross-appeal challenging the underlying verdict, keeping the entire case active in the appeals process amid ongoing federal scrutiny of James for potential civil rights violations in her handling of the trial.