An appeals court in New York has overturned a $500m penalty imposed on former U.S. President Donald Trump in a civil fraud case, ruling that the fine was excessive.
The penalty had been ordered last year by Judge Arthur Engoron, who found Trump liable for inflating the value of Trump Organization properties to obtain favourable loans. The original fine of $355m had ballooned to over $500m with interest.
The New York Supreme Court’s Appellate Division in a recent ruling acknowledged Trump’s liability for fraud but concluded that the nearly half-billion-dollar fine violated constitutional protections against disproportionate punishment.
“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the state,” Judge Peter Moulton wrote.
Reacting on his social media platform, Truth Social, Trump hailed the decision as a “total victory,” insisting that the case was politically motivated.
“I greatly respect the fact that the Court had the courage to throw out this unlawful and disgraceful decision that was hurting business all throughout New York State,” he posted.
