NY State Urges Appeals Court to Uphold Donald Trump’s $500 Million Civil Fraud Judgment

New York state lawyers urged an appeals court late Wednesday to uphold Donald Trump’s nearly $500 million civil fraud judgment, arguing that there is “overwhelming evidence” supporting the judge’s finding that the former president lied for years about his wealth while building his real estate empire.

In documents filed ahead of next month’s oral arguments, the New York Attorney General Letitia James’ office contended that Trump’s appeal is rife with “meritless legal arguments” and disregards volumes of trial evidence showing that he and his co-defendants engaged in “fraud and illegality on an immense scale.”

“On appeal, the defendants tellingly ignore almost all of their deceptions,” Assistant Solicitor General Daniel S. Magy wrote in a 168-page submission to the Appellate Division, the state’s mid-level appeals court.

Trump, his company, and top executives, including his sons Eric and Donald Trump Jr., “created and used financial statements rife with blatant misrepresentations and omissions to maintain loans worth more than half a billion dollars and to generate over $360 million in ill-gotten profits,” Magy wrote.

The Appellate Division announced Wednesday that it will hear the case on September 26, about six weeks before Election Day and just after early voting begins in some states. The court typically rules about a month after arguments, meaning a decision could come before the presidential race ends.

If upheld, the judgment threatens to dent Trump’s personal wealth, disrupt his Trump Organization, and damage his identity as a savvy businessman. As of Wednesday, the Trump defendants owe more than $485 million, including interest that continues to accrue even after Trump posted a $175 million bond in April to halt collection and prevent the state from seizing his assets while he appeals.

Trump is asking the Appellate Division to overturn Manhattan Judge Arthur Engoron’s February 16 ruling that he lied to banks, insurers, and others about his wealth on financial statements used to secure loans and make deals. He and his lawyers argue that the verdict was “erroneous” and “egregious.”

The Appellate Division could uphold Engoron’s verdict, reduce or modify the penalty, or overturn the decision entirely. If Trump is unsuccessful at the Appellate Division, he can ask the state’s highest court, the Court of Appeals, to consider his case. If he wins, he won’t have to pay the state anything and will recover his bond money.

Trump and his lawyers assert that the case should never have gone to trial, that the statute of limitations barred some allegations, and that the state shouldn’t be policing private business transactions. They also challenge the legal basis of James’ lawsuit, arguing that the law under which she sued him is a consumer-protection statute typically used to regulate businesses that defraud customers.

Trump denies any wrongdoing, claiming no one was harmed. He has condemned the verdict as “election interference” and “weaponization against a political opponent,” insisting he is being punished for “having built a perfect company, with great cash flow, great buildings, great everything.” Both James and Engoron are Democrats.

In their response on Wednesday, state lawyers argued that the statute of limitations was properly applied and that state law authorizes the attorney general to take action against fraudulent or illegal business conduct “regardless of whether it targets consumers, small businesses, large corporations, or other individuals or entities.”

The scheduling of oral arguments on Wednesday adds to a busy September for Trump, who is campaigning to retake the White House while managing the fallout from multiple courtroom losses.

Trump is scheduled to debate his Democratic opponent, Vice President Kamala Harris, on September 10. On September 16, the judge in Trump’s hush money criminal case is expected to rule on a defense request to overturn his felony conviction and dismiss the case on presidential immunity grounds. Two days later, Trump is scheduled to be sentenced in the criminal case—though his lawyers have requested that sentencing be postponed until after Election Day on November 5.

Engoron found that Trump, his company, and top executives schemed for years to inflate his financial statements, creating the illusion that he and his properties were more valuable than they really were. State lawyers reported that Trump inflated his net worth on financial statements by as much as $800 million to $2.2 billion annually.

In addition to the substantial monetary penalty, the judge imposed strict limitations on the Trump Organization’s ability to conduct business. Among other consequences, Engoron placed the Trump Organization under the supervision of a court-appointed monitor for at least three years.

If upheld, Engoron’s ruling will force Trump to forfeit a significant portion of his fortune. The judge ordered Trump to pay $355 million in penalties, accounting for what he described as “ill-gotten gains” derived from his inflated financial statements, including lower loan interest rates and profits from projects he otherwise would not have been able to complete.

As of Wednesday, the total owed had risen to $485.2 million, including $20.6 million in accrued interest since the verdict. The amount will continue to increase by nearly $112,000 per day until it is paid unless the verdict is overturned.

Trump maintains that he is worth several billion dollars and testified last year that he had about $400 million in cash, along with properties and other investments. James has said that if Trump is unable to pay, she will seek to seize some of his assets.

In a filing last month, Trump’s lawyers argued that if Engoron’s decision is upheld, it would grant James “limitless power” to target anyone she chooses, including her self-described political opponents.