New York appeals court throws out $500 million civil fraud penalty against Donald Trump | World News
A New York appeals court on Thursday voided a trial court order that imposed a civil fraud penalty of over $500 million on US President Donald Trump.
A panel of five judges in New York’s mid-level Appellate Division said the trial judge’s penalty against Trump for exaggerating his wealth was ‘excessive.’
Why was Trump fined?
After finding that Trump engaged in fraud flagrantly padding up financial statements that went to lenders and insurers, Judge Arthur Engoron ordered him last year to pay $355 million in penalties. With interest, the sum topped $515 million. Combined with penalties on other Trump Organization executives, including sons Eric and Donald Jr., the total exceeded $527 million.
Story continues below this ad
Engoron had also imposed other punishments, such as banning Trump and his two eldest sons from serving in corporate leadership for a few years. Those provisions have been on pause during Trump’s appeal, and he was able to hold off collection of the money posting a $175 million bond.
Appeals court upholds other punishments
While Thursday’s ruling spared Trump from a potential half-billion-dollar fine, it upheld other punishments, such as banning him and his two eldest sons from serving in corporate leadership for a few years.
