NY appeals court throws out Trump's $515M fraud penalty, Internet calls for Letitia James to be impeached

NEW YORK CITY, NEW YORK: A New York state appeals court on Thursday, August 21, struck down a civil business fraud penalty of more than $515 million against President Donald Trump and other defendants.

The court ruled that while restrictions on the Trump Organization remain, the massive fine ordered last year violated constitutional protections.

Appeals court says massive fine violates the Eighth Amendment

The appeals court said the “injunctive relief” crafted by the trial judge would stand, describing it as “well crafted to curb defendants’ business culture.”

However, it rejected the financial penalty, calling it unconstitutional under the Eighth Amendment.

The ruling stated that the penalty, “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.”

The case had been filed by New York State Attorney General Letitia James.

Eric Trump calls appeals court ruling 'total victory'

In February 2024, Manhattan Supreme Court Judge Arthur Engoron ordered Donald Trump to pay about $454 million after holding him liable for business fraud.

Engoron found that Trump’s financial statements between 2014 and 2021 had overstated his assets by between $812 million and $2.2 billion.

With accumulated interest, the total penalty had risen to more than $515 million by the time of the appeal.

Eric Trump, one of the defendants in the lawsuit, celebrated the ruling in an X (formerly Twitter) post.

“Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!” wrote Eric, who helps operate the Trump Organization with his brother Donald Trump Jr.

In a concurring opinion, Appellate Division Judge Peter Moulton wrote that James “did not carry her initial burden” in proving the total profits tied to the alleged violations.

“Indeed, the calculation of the disgorgement in this case was far from a reasonable approximation,” Judge Moulton wrote.

The decision still allows James and the defendants to appeal further, while the non-monetary penalties imposed on Trump and his company remain in place.

Alina Habba calls it a 'resounding victory' for Trump

Former Donald Trump lawyer Alina Habba, meanwhile, called the ruling “a resounding victory for President Trump and his company.”

“The court struck down the outrageous and unlawful $464 million penalty, confirming what we have said from the beginning: the Attorney General’s case was politically motivated, legally baseless, and grossly excessive,” Habba, who was on Trump’s legal team in the case and is now an acting US Attorney in New Jersey, wrote on X.

“President Trump won — and justice won with him.”

Internet hails Trump ruling as a 'big win' against Democrats

Internet users quickly weighed in after the decision, with some suggesting it was time for the president to get his payback. 

“WINNING!!!! Next go after the lawmaker who gave this ridiculous penalty!” one wrote on X. Another said, "This is a big win the democrats having a angry week."

A person said, "This is fantastic news for @POTUS!"

Some took sharper aim at officials involved. “Judge Engoron and Attorney General Letitia James need to be impeached. Would like to see both imprisoned,” demanded one user.

Another asked, “How much did this whole ‘we gotta get Trump’ lawfare fiasco that hilariously backfired cost NYC?”

Others called for further action, with one writing, “Not good enough. It’s payback time.”

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