$454 Million Civil Fraud Appeal Set to Be Argued in New York

Former President Donald Trump is set to return to court on September 26, as a New York appeals court hears his challenge against a significant judgment totaling $454 million. This judgment was handed down following findings that Trump misled lenders by inflating the value of his assets.

The Manhattan-based appeals court has scheduled the arguments for this date, providing Trump the opportunity to contest the conclusions made by trial Judge Arthur Engoron. The judge determined that Trump fraudulently inflated asset values to secure more favorable loan and insurance agreements.

As of now, spokespeople for both Trump and New York Attorney General Letitia James have not responded to requests for comments about the upcoming hearing.

Judge Engoron previously held Trump along with certain entities under his control liable for the whopping $454 million, in addition to accruing interest on this amount. The judge also imposed a separate liability of around $10 million on Trump’s oldest sons, Eric and Don Jr., as well as on former Trump Organization executive Allen Weisselberg.

In Trump’s appeal, his legal team argues that AG James failed to meet the deadline to initiate the legal proceedings against him. They contend that Trump did not breach the relevant New York fraud statute. According to them, the financial statements in question included disclaimers, and any inaccurate valuations did not result in harm to anyone.

The appeals court has previously aided Trump in this case by permitting him and his co-defendants to post a bond of only $175 million, rather than the total judgment amount. This arrangement prevents AG James from seizing Trump’s assets while the appeal process is ongoing.

Recently, Trump’s lawyers attempted to have Judge Engoron recused from the case. They based their argument on a conversation the judge had with another lawyer regarding the fraud statute, claiming it violated a rule that restricts judges from consulting with experts. However, Engoron stated that he felt he was “accosted” by the other lawyer and clarified that his rulings were not influenced by their exchange.

Despite the case being under appeal, Judge Engoron retains jurisdiction due to having imposed ongoing restrictions on the defendants. This includes the requirement for an independent monitor to continue overseeing operations at the Trump Organization.

As the legal battles continue, the outcome of the appeal may have significant implications for Trump as he navigates his political future during an election year.

Source: USA Today