A New York appeals court has slashed former President Donald Trump’s $454 million bond payment by more than half, a significant development in the ongoing legal battle stemming from a civil fraud judgment against him. The case, brought by New York Attorney General Letitia James, alleges that Trump and his company, the Trump Organization, persistently inflated the value of their assets to secure loans and investments.
Trump, the 2024 presumptive GOP presidential nominee, has denied any wrongdoing and vehemently maintains that his assets were not intentionally misrepresented. He has vowed to appeal the ruling all the way to the U.S. Supreme Court.
The original judgment, handed down by New York Judge Arthur Engoron, found Trump and the Trump Organization liable for persistent fraud and deception, including falsifying business records, issuing false financial statements, and engaging in insurance fraud. Engoron ruled that the Trump entities had committed fraud while building their real estate empire, deceiving banks, insurers, and others by overvaluing their assets and exaggerating Trump’s net worth on paperwork used in making deals and securing financing.
Trump’s legal team has argued that the lawsuit stretched New York consumer protection laws and that there were no victims or complaints from lenders or insurers. They also pointed to the statute of limitations, arguing that some of the transactions used in the case dated back more than a decade.
The appeals court, however, questioned the magnitude of the original penalty, suggesting it might have been too severe. They pointed out that the “immense penalty in this case is troubling.” Despite this, the state argued that there is evidence to support the verdict.
The five-judge panel on the New York appeals court in Manhattan heard oral arguments on the appeal, with Trump’s legal team arguing that the initial bond was unprecedented for a private company and practically impossible to post in full. As a result, the appeals court slashed the bond payment to $175 million, which Trump has since paid.
The outcome of the appeals process remains uncertain. The Appellate Division typically issues rulings within a month of hearing arguments, meaning a final decision could come before Election Day on November 5th.
While Trump’s legal team maintains that his financial statements contained disclaimers and made it clear to banks that they should conduct their own assessments, the case is far from over. The legal battle is likely to continue, with potential ramifications for Trump’s political future and his business empire.
