NY Judges Scrutinize ‘Troubling’ $450 Million Penalty In Trump Fraud Case: ‘No One Lost Any Money’
SUMMARY
A New York appellate court is questioning the $450 million penalty imposed on Donald Trump in a civil fraud case brought by Attorney General Letitia James. The case involves claims that Trump inflated his personal wealth to secure better loan terms, but no parties involved in the transactions suffered financial losses. Judge Arthur Engoron ordered Trump to pay the substantial penalty earlier this year, though Trump's legal team argued the case violated the statute of limitations. During Thursday's hearing, the appellate justices scrutinized the size of the penalty and questioned its justification given that all parties involved in Trump's loans were reportedly satisfied with the outcomes. Justice Peter Moulton called the penalty "troubling," noting the lack of harm caused, while Justice David Friedman suggested the case might overstep the intended scope of the law. Vale, representing the state, argued the penalty was warranted due to "a lot of fraud and illegality."
