The New York attorney general is appealing a court ruling that erased a nearly $500 million civil fraud penalty against former President Donald Trump. The move comes as the state’s highest court reviews whether to reinstate the hefty fine, which was reduced to zero last month.
- New York seeks to reinstate Trump’s civil fraud penalty
- Trump’s $500 million fine was reduced to $0
- Trump appeals other sanctions including ban from NY business roles
- Judge Engoron ordered Trump to pay over $355 million
- Appellate Division called the penalty "excessive"
- Trump’s lawsuit alleges inflated asset valuations and fraud
On September 4, 2025, the New York attorney general filed an appeal with the Court of Appeals, seeking to overturn a lower court decision that declared the penalty unconstitutional. The original fine stemmed from a 2022 lawsuit alleging Trump inflated his net worth by billions and misled banks about his assets, including Trump Tower and Mar-a-Lago. A trial court ordered Trump to pay over $355 million, later rising to more than $527 million with interest. The Appellate Division’s recent ruling called the penalty excessive, but the attorney general is now pushing to reinstate it. Trump has also appealed other sanctions, including a ban on him and his sons from holding corporate roles in New York, which remain on hold during the appeal process.
- The attorney general seeks to reverse a ruling that declared the fine unconstitutional.
- The case involves allegations of long-term fraud by Trump and his company.
- The Court of Appeals is the highest court in New York and will decide the case.
- The sanctions against Trump and his sons are currently on hold pending the appeal outcome.
This legal battle highlights ongoing efforts to hold Trump accountable for financial misconduct, with significant implications for his business and political future.
The Court of Appeals’ decision will determine whether the $500 million penalty and other sanctions are reinstated, shaping the case’s final outcome.
