New York, August 21, 2025 – A New York appeals court has thrown out the nearly half-billion-dollar civil fraud penalty against President Donald Trump, while upholding the finding that he exaggerated his wealth for decades.
The ruling spares Trump from a $515 million (€443 million) fine, but prohibits him and his two eldest sons from holding corporate leadership positions for several years.
The five-judge panel of New York’s mid-level Appellate Division described the original penalty as “excessive”, though they acknowledged that Attorney General Letitia James’ lawsuit was justified and that she had proven Trump engaged in fraud by inflating financial statements to lenders and insurers.
Judge Arthur Engoron had previously ordered Trump to pay $355 million (€305 million), with interest raising the total to more than $515 million. Penalties against other executives in the Trump Organization, including Eric and Donald Jr., brought the overall figure to over $527 million (€453 million).
In their opinion, Judges Dianne T. Renwick and Peter H. Moulton wrote:
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment.”
The court ruling, which includes 323 pages of concurring and dissenting opinions, allows for a possible appeal to New York’s Court of Appeals. Meanwhile, Trump can continue to pause the enforcement of remaining penalties by posting bonds.
Attorney General James’ office had no immediate comment on the decision. She has previously described Trump’s actions as “lying, cheating, and staggering fraud.”
