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Home»Today's latest»Donald Trump Reacts to Massive Legal Win in $527M Fraud Penalty Appeals Decision
Today's latest

Donald Trump Reacts to Massive Legal Win in $527M Fraud Penalty Appeals Decision

Robert JonesBy Robert JonesAugust 22, 2025No Comments5 Mins Read
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President Donald Trump and his sons, Donald Trump Jr. and Eric Trump, have posted their reactions after an appeals court overturned the massive civil fraud penalty against their family.

A five-judge panel of New York’s Appellate Division concluded that the $515 million judgment, originally set at $355 million plus interest, was “excessive” and unconstitutional under the Eighth Amendment.

“TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case! 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. Others were afraid to do business there. The amount, including Interest and Penalties, was over $550 Million Dollars. It was a Political Witch Hunt, in a business sense, the likes of which no one has ever seen before,” President Trump said on Truth Social.

He added that “it should have never been allowed to happen, and everyone knew it.”

Eric Trump, posted on X, “Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!”

Donald Trump Jr. posted on X, “Massive Win!!! New York Appeals Court has just THROWN OUT President Trump’s $500+ Million civil fraud penalty! It was always a witch hunt, election interference, and a total miscarriage of justice… and even a left leaning NY appeals court agrees! NO MORE LAWFARE!”

New York Attorney General Letitia James, who filed the lawsuit against Trump and his children, said the court affirmed the “well-supported” finding of fraud. James said her office plans to appeal “to protect the rights and interests of New Yorkers.”

Why It Matters

Eric Trump and Donald Trump Jr. were co-defendants in the New York civil fraud trial, accused of helping oversee and certify financial statements that inflated the value of the Trump Organization’s assets. Judge Arthur Engoron initially barred them from serving as corporate officers in New York for two years and imposed financial penalties alongside their father.

The ruling by the appeals court spares President Trump from the monetary payment, but still bans him and his two eldest sons from serving in corporate leadership for a few years.

Trump family
L-R: Donald Trump Jr., President Donald Trump and Eric Trump attend the opening ceremony for the Trump International Golf Links golf course in Scotland on July 29, 2025.
L-R: Donald Trump Jr., President Donald Trump and Eric Trump attend the opening ceremony for the Trump International Golf Links golf course in Scotland on July 29, 2025.
Associated Press

What to Know About the Civil Fraud Case Against Donald Trump

“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” Judges Dianne T. Renwick and Peter H. Moulton wrote in an opinion.

The court’s five judges split on the merits of the lawsuit and Engoron’s finding of fraud. A majority decision was not reached. Instead, the ruling resulted from some judges endorsing parts of their colleagues’ findings while denouncing others.

The court took 11 months to release its ruling after hearing oral arguments last fall. Appeals are typically decided in a matter of weeks or a few months.

After a months-long trial, Trump said in January 2024 that he was “an innocent man.” The president and his lawyers have said his financial statements were not deceptive and that bankers and insurers independently evaluated the numbers.

What People Are Saying

President Donald Trump, on Truth Social: “This was a Case of Election Interference by the City and State trying to show, illegally, that I did things that were wrong when, in fact, everything I did was absolutely CORRECT and, even, PERFECT. Every single Dollar was thrown out, even the penalties imposed on us by the Corrupt Judge, one of the most overturned in History, Arthur Engoron.

“I wasn’t given a Jury and, during the course of the Trial, which lasted a long time, was not given one Ruling in my favor by this Political Hack, but worse than him, if that’s possible, was Letitia James, a Corrupt and Incompetent Attorney General who only brought this Case in order to hurt me politically. She is a Trump Deranged Lunatic! They made me bond the outrageous sum, which never happened before, and which cost me Millions of Dollars a month.”

New York Attorney General Letitia James, in a statement on X: “It should not be lost to history: yet another court ruled that the president violated the law, and that our case has merit.”

What Happens Next

The ruling allows for a possible appeal to the state’s highest court, the Court of Appeals. James indicated that she will seek an appeal.

Trump and his co-defendants can seek to extend the pause on any punishments taking effect, which were put on hold during the appeals process.

This article includes reporting by the Associated Press.

Do you have a story that Newsweek should be covering? Do you have any questions about this story? Contact LiveNews@newsweek.com.

Update 8/21/25, 12:08 p.m. ET: This article was updated with additional information.

Update 8/21/25, 1:09 p.m. ET: This article was updated with additional information.



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