New York state attorneys urged an appeals court on Wednesday to uphold a nearly $500 million civil fraud judgment against Donald Trump, arguing that there is “overwhelming evidence” supporting the claim that he lied for years about his wealth while building his real estate empire.
In a 168-page filing ahead of oral arguments next month, New York Attorney General Letitia James’ office criticized Trump’s appeal, calling it filled with “meritless legal arguments” and overlooking substantial trial evidence that he and his co-defendants committed fraud on a massive scale. Assistant Solicitor General Daniel S. Magy claimed that Trump and his top executives, including his sons Eric and Donald Trump Jr., manipulated financial statements to secure loans worth more than $500 million and reap $360 million in profits.
The Appellate Division will hear the case on September 26, just weeks before Election Day. A ruling is expected shortly afterward, with potential consequences that could disrupt Trump’s business operations and significantly impact his personal wealth. As of Wednesday, Trump and his company owe over $485 million, a sum that includes accrued interest, despite a $175 million bond posted by Trump in April to halt the collection process.
Trump is challenging Manhattan Judge Arthur Engoron’s February ruling, which found that he had inflated his wealth to deceive banks, insurers, and others in financial dealings. Trump’s legal team has argued the decision was “egregious” and “erroneous.” The appeal could result in the verdict being upheld, reduced, or overturned. If unsuccessful, Trump could still take his case to New York’s highest court, the Court of Appeals.
Trump’s lawyers argue that some claims should have been dismissed due to the statute of limitations and that the state is overreaching by regulating private business matters. They also contend that the lawsuit, filed under a consumer protection statute, is being misused to target Trump’s business dealings. Trump denies any wrongdoing, accurately describing the case as “election interference” and accusing Democrats of weaponizing the law against him.
In their response, state lawyers argued that the statute of limitations was properly applied and that New York law allows the attorney general to act against fraudulent business practices regardless of who is affected.
If the judgment is upheld, Trump will be required to pay $355 million in penalties, reflecting what the court identified as profits gained through the inflated financial statements. With interest, the total judgment stood at $485.2 million as of Wednesday, and it continues to grow by $112,000 per day until payment is made or the decision is overturned.
James has warned that if Trump is unable to pay, she may seek to seize his assets. Trump’s defense argues that upholding the decision would grant the attorney general “limitless power” to target political opponents.
