New York appellate court voids Trump civil fraud penalty as excessive

An appellate court in New York on Thursday overturned the civil fraud penalty imposed against former President Donald Trump, ruling that the penalty was excessive and unconstitutional under the U.S. Constitution. The decision, coming seven months after Trump returned to the White House, removes roughly half a billion dollars in ill-gotten gains from Trump and several associates but leaves intact other remedies and clears a path for further challenges to the broader case.

The underlying case, brought by New York Attorney General Letitia James, centered on allegations that Trump and related entities inflated asset values to obtain favorable loans and insurance terms between 2011 and 2021. Trial evidence highlighted inflated figures for properties such as Trump Tower and Mar-a-Lago, with the former deemed to be far larger than its actual size and the latter valued at amounts critics said did not reflect reality. The trial judge, Arthur Engoron, found fraud and ordered Trump to pay about $355 million in penalties, with interest bringing the total to more than $515 million. When including penalties against Trump Organization executives, including his sons Eric and Donald Jr., the...