New York (Reuters)-In a triumph for Donald Trump, a New York State Appeals Court ruled out a fine of approximately half a billion dollars against the United States president, in a case of fraud that had been one of the biggest legal setbacks before his return to the White House.
The decision of the Manhattan Appeal Division makes a defeat to New York Attorney General, Letitia James, whom Trump accused the process of civil fraud to promote a political witches and deny her a second term.
A first instance judge ordered the penalty in February 2024, after concluding that Trump has fraudulently overestimated his wealth and the value of his properties to reinforce his family’s business.
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Trump denied having made irregularities, and his lawyers argued that any errors in reporting Trump’s fortune to creditors and business partners were irrelevant because no one was harmed.
Thursday’s decision divided the Court of Appeals, composed of five judges, with some agreeing that Trump should be held responsible, while others have requested a new trial or even the rejection of the case.
In a social network publication, Trump called the decision “Total Victory”.
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“I respect the fact that the court had the courage to reject this illegal and shameful decision,” Trump wrote.
James said he should ask the court of appeals, the highest court in the state, to analyze the case.
“This should not be forgotten: another court has ruled that the president has violated the law and that our case has merit,” she added.
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Trump was convicted separately in May 2024 for criminal accusations at a New York state court in Manhattan, due to the money paid to the star Stormy Daniels for his silence, but the conviction resulted in any punishment.
Two judges considered that Trump was properly held responsible and that James “justified a public interest” in suing it, but evaluated that the penalty was unconstitutionally excessive. They kept the restrictions imposed on Trump’s business.
Two other judges also considered that James had the authority to conduct the case, but a new trial would be necessary due to the errors of the first instance judge. The fifth judge said the case should be filed.
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Thursday’s decision occurred as the US Department of Justice investigates James for possible mortgage fraud. The investigation is part of a White House effort to use government power against people who investigated Trump or resisted their agenda.
