NY attorney general accuses Trump of ‘ignoring’ fraud in appeal of $455 million judgment

MANHATTAN (CN) — New York Attorney General Letitia James urged a state appeals court to uphold a nearly $455 million civil fraud judgment against Donald Trump, arguing that the “overwhelming evidence” revealed at trial shows that the former president engaged in “repeated and persistent fraud.”

New York Supreme Court Justice Arthur Engoron issued the judgment earlier this year, finding that Trump lied about his wealth on yearly financial documents to obtain more favorable loan terms from lenders. Engoron ordered Trump to pay around $355 million in disgorgement, along with another $100 million in pre-judgment interest.

“As supreme court correctly determined, the undisputed evidence at summary judgment and the overwhelming evidence at trial established that defendants engaged in repeated and persistent fraud and illegality,” state attorneys wrote in a 168-page brief filed late Wednesday night.

In its brief, James’ office accused Trump of making “meritless legal arguments” in his effort to thwart the judgment on appeal.

“On appeal, defendants tellingly ignore almost all their deception,” the state lawyers wrote.

Chris Kise, Trump’s lead attorney in this case, did not immediately respond to requests for comment Wednesday.

Trump vowed to appeal the judgment immediately after it was issued in February. But it wasn’t until last month that his legal team fully briefed the issue to New York’s Appellate Division, First Department — a mid-level state appeals court. Arguing that Engoron’s ruling was “erroneous” and “egregious,” Trump warned that upholding the judgment would grant the attorney general with “limitless power to target anyone she desires.”

State attorneys disagreed.

“We won this case based on the facts and the law, and we are confident we will prevail on appeal,” James’ office said in a statement at the time.

The appellate court revealed Wednesday that it will hold oral arguments on Trump’s appeal on Sept. 26, about six weeks before Election Day. The judgment, if upheld, could drain Trump’s finances. The half a billion-dollar penalty could force the seizure of his prized New York real estate assets, such as his Seven Springs resort in Westchester County.

James, a Democrat, was reportedly prepared to start going after some of those assets in March, but Trump posted a $175 million bond to prevent their seizure on appeal.

The appellate court could either modify the judgment how it sees fit, or if Trump gets his way, overturn the penalty in its entirety. It remains unclear if the court will issue a final ruling before November’s presidential election.

Following a 10-week trial in late 2023, Engoron found that Trump fraudulently inflated the value of his assets on yearly Trump Organization statements of financial condition to swindle financial institutions. The judge cited Trump and his co-defendants’ refusal to admit wrongdoing as a primary reason for the hefty penalty.

“Their complete lack of contrition and remorse borders on pathological,” Engoron wrote in his 92-page decision. “Defendants’ refusal to admit error… constrains this court to conclude that they will engage in it going forward unless judicially restrained.”

Finding that Trump’s frauds “leap off the page and shock the conscience,” Engoron issued a temporary business ban against the former president to go along with the financial punishment.

Trump’s co-defendants included his adult sons Eric Trump and Donald Trump Jr., who were issued two-year real estate bans and are on the hook for $4 million each, should the judgment be upheld.

Former Trump Organization executives Allen Weisselberg and Jeff McConney were named defendants as well. They faced limited industry bans for their role in the scheme. Weisselberg also served 100 days in prison after he admitted to perjuring himself during the proceedings.

The end of the year is shaping up to be a busy one for Trump. In addition to facing off with his Democratic presidential opponent Kamala Harris in the November election, he’s due to be sentenced in Manhattan criminal court in September on 34 counts of falsifying business records — just one of the numerous battles Trump is currently fighting in courts around the country.

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