Trump Is on the Brink of a Win in His Massive New York Fraud Case
Donald Trump may soon get a reduced penalty in his civil fraud case, if oral arguments in an appeals court Thursday are any indication. The intermediate appeals court in Manhattan heard Trump’s appeal against a New York ruling from February where he was not only fined $450 million plus interest but also barred from doing business in New York. Some of the judges on the five-member panel seemed at least receptive to the former president. “The immense penalty in this case is troubling,” said Justice Peter Moulton. “How do you tether the amount that was assessed by the Supreme Court to the harm that was caused here where the parties left these transactions happy?”Deputy New York Solicitor General Judith Vale, representing the state, was ready with a response, though. “Although this is a large number, it’s a large number for a couple reasons. One, because there was a lot of fraud and illegality,” Vale said. “That is an enormous benefit they got from this conduct” of falsifying financial statements to obtain better loan rates, she added, referring to the Trump Organization. Justice David Friedman argued that the ruling against Trump was undercut by Deutsche Bank saying Trump’s actions did not harm them. “It hardly seems to justify bringing an action to protect Deutsche Bank against President Trump, which is what you have here,” Friedman said. “You have two really sophisticated players, in which no one lost any money.”Vale said that state law did not require being harmed, and also noted that the bank actually complained when it heard about false statements and pulled out of its agreement with Trump. At one point, Trump’s lawyer John Sauer tried to argue that the former president and his businesses were following “generally accepted accounting principles,” only to be rebuked by Justice Peter H. Moulton. “It’s the factual inaccuracies that are important,” Moulton countered. “You might be following GAAP principles, but if your data is terrible, you’re creating a fallacious statement.”The former president and convicted felon had to pony up a $175 million bond in April to stop the judgment while he appeals. His fine, thanks to 9 percent interest accruing every year, has now grown to more than $478 million. If he wins, it will be dropped, and Trump has had some success in New York courts as of late.
Donald Trump may soon get a reduced penalty in his civil fraud case, if oral arguments in an appeals court Thursday are any indication.
The intermediate appeals court in Manhattan heard Trump’s appeal against a New York ruling from February where he was not only fined $450 million plus interest but also barred from doing business in New York. Some of the judges on the five-member panel seemed at least receptive to the former president.
“The immense penalty in this case is troubling,” said Justice Peter Moulton. “How do you tether the amount that was assessed by the Supreme Court to the harm that was caused here where the parties left these transactions happy?”
Deputy New York Solicitor General Judith Vale, representing the state, was ready with a response, though.
“Although this is a large number, it’s a large number for a couple reasons. One, because there was a lot of fraud and illegality,” Vale said. “That is an enormous benefit they got from this conduct” of falsifying financial statements to obtain better loan rates, she added, referring to the Trump Organization.
Justice David Friedman argued that the ruling against Trump was undercut by Deutsche Bank saying Trump’s actions did not harm them.
“It hardly seems to justify bringing an action to protect Deutsche Bank against President Trump, which is what you have here,” Friedman said. “You have two really sophisticated players, in which no one lost any money.”
Vale said that state law did not require being harmed, and also noted that the bank actually complained when it heard about false statements and pulled out of its agreement with Trump.
At one point, Trump’s lawyer John Sauer tried to argue that the former president and his businesses were following “generally accepted accounting principles,” only to be rebuked by Justice Peter H. Moulton.
“It’s the factual inaccuracies that are important,” Moulton countered. “You might be following GAAP principles, but if your data is terrible, you’re creating a fallacious statement.”
The former president and convicted felon had to pony up a $175 million bond in April to stop the judgment while he appeals. His fine, thanks to 9 percent interest accruing every year, has now grown to more than $478 million. If he wins, it will be dropped, and Trump has had some success in New York courts as of late.
