Trump Seeks Dismissal of New York Civil Fraud Judgment Citing Cohen's Coercion Claims

Washington, D.C. – President Donald Trump’s legal team is pressing New York’s highest court to dismiss the civil fraud judgment against him, arguing that key witness Michael Cohen’s recent admissions of feeling “pressured and coerced” by prosecutors undermine the entire case brought by Attorney General Letitia James.

The long-running civil case, filed in 2022, accused Trump, his adult sons Donald Jr. and Eric, the Trump Organization, and former executives of systematically inflating asset values on financial statements to secure better loans and insurance terms while deflating them for tax benefits. Judge Arthur Engoron ruled in 2024 that Trump committed fraud, imposing roughly $454 million in penalties plus interest, which grew to over $500 million. The ruling also included bans on Trump serving as an officer or director of New York companies.

Cohen, Trump’s former personal attorney, was a central witness. During the 2023 trial, he testified that Trump directed him and former CFO Allen Weisselberg to manipulate asset valuations to reach arbitrary target net worth figures. Cohen described a process of “reverse engineering” the statements.

In January 2026, however, Cohen wrote on Substack that he felt pressured during interactions with both James’ office and Manhattan DA Alvin Bragg’s team. “From the time I first began meeting with lawyers from the Manhattan DA’s Office and the New York Attorney General’s Office... I felt pressured and coerced to only provide information and testimony that would satisfy the government’s desire to build the cases against and secure a judgment and convictions against President Trump,” Cohen stated.

He added: “I felt compelled and coerced to deliver what they were seeking.” Cohen described similar dynamics in both the civil fraud case and the separate hush money prosecution, claiming prosecutors showed interest only in testimony that advanced convictions.

Trump’s April 2026 appeal to the New York Court of Appeals highlights these statements, asserting the judgment rests heavily on Cohen’s now-contradicted testimony. Lawyers argue the case reflects “pure politics” and political hostility from James, who campaigned in 2018 promising to target Trump.

An intermediate appeals court previously reduced or threw out significant portions of the penalty, describing it as excessive, but James has sought reinstatement.

Prosecutors in the original case relied on Cohen despite his history of convictions for tax evasion, false statements, and campaign finance violations. Trump’s team has long portrayed him as a discredited liar seeking revenge.

The push for dismissal aligns with broader Trump administration efforts to challenge perceived lawfare from prior Democratic-led investigations. No final ruling has been issued by New York’s top court as of June 2, 2026. The case continues to impact Trump Organization operations in the state.