New York Appeals Court Voids $527M Fraud Penalty Against Trump—but Upholds Fraud Finding

Huge Legal Victory – But Not Acquittal

A New York appellate court has overturned the $527 million civil penalty imposed on former President Donald Trump and his organization, calling the amount “excessive” under the Eighth Amendment. However, the court upheld the civil fraud finding, maintaining that Trump inflated the value of assets to gain favorable business terms.

Penalty Deemed Excessive

The panel of five judges ruled that while the fraud did occur, the financial punishment—including disgorgement of ill-gotten gains plus interest—was disproportionate, violating constitutional limits.

Key Restrictions Remain

Though the monetary penalty is gone, the court retained injunctions restricting Trump and his business operations in New York:

• Trump is barred from serving as an officer in New York-based entities.
• Donald Jr. and Eric Trump also remain restricted from leadership roles for a period. 

Divided Ruling, Appeals Anticipated

The decision was split—the court’s ruling ranged from finding the penalty improper to others suggesting a full dismissal was warranted. The New York attorney general has already said she plans to appeal to the state’s highest court.

Broader Legal Context

This isn’t the end of the legal saga. Trump still faces other pending legal obligations—including a criminal conviction and separate defamation rulings—as well as continued legal battles across multiple jurisdictions.