Donald Trump has been persecuted more than any president in recent history. But now his name is cleared.
Because a federal court gave Donald Trump a huge win that put the witch hunts to bed.
New York Appeals Court Overturns $515M Fraud Fine Against Trump, Upholds Liability
President Donald Trump secured a significant legal victory on August 21, 2025, when New York’s Appellate Division, First Department, overturned a $464 million fine—ballooning to $515 million with interest—imposed in a civil fraud case brought by Attorney General Letitia James.
The 323-page ruling, split among three opinions, deemed the penalty “excessive” under the Eighth Amendment, with Judges Dianne T. Renwick and Peter H. Moulton stating it violated constitutional limits on fines.
However, the court upheld findings that Trump, his sons Donald Jr. and Eric, and the Trump Organization engaged in fraud by inflating asset values, such as Trump’s Trump Tower triplex and Mar-a-Lago estate, to secure favorable loan and insurance terms from 2011 to 2021.
The case now heads to New York’s Court of Appeals, as no majority opinion allows for an automatic appeal.
Case Details and Ruling
The ruling maintains non-monetary sanctions, including a three-year ban on Trump holding corporate directorships in New York, a two-year ban for his sons, and oversight by an independent monitor for the Trump Organization, measures paused during the appeal after Trump posted a $175 million bond.
James, who campaigned on investigating Obama’s successor, alleged “staggering fraud,” citing examples like Trump’s triplex falsely reported as 30,000 square feet (actually 11,000) and Mar-a-Lago valued at $517 million despite a $27 million tax valuation as a social club.
Trump, denying wrongdoing, celebrated on Truth Social, calling it a “TOTAL VICTORY” and a “political witch hunt” by James, whom he accused of targeting him for political gain. James, claiming a partial win, vowed to appeal to the state’s highest court, emphasizing the upheld fraud findings.
Trial and Broader Context
The decision follows an 11-week trial in 2023-2024, where Judge Arthur Engoron ruled Trump’s actions “shock the conscience.”
Critics, including Justice David Friedman, argued James overstepped her authority under New York Executive Law § 63(12), with no direct victims harmed, as lenders like Deutsche Bank were repaid.
James countered that the fraud disrupted market integrity. The ruling coincides with Justice Department probes into James for alleged mortgage fraud and civil rights violations, led by Trump’s appointee Ed Martin, who recently appeared outside James’ Brooklyn home.
Democrats, including James’ attorney Abbe Lowell, call these investigations “political retribution,” while Trump’s team, including former lawyer Alina Habba, hailed the ruling as proof of a “legally baseless” case.
