On August 21, 2025, New York’s Appellate Division, First Department, issued a landmark, split-decision in the civil fraud case brought by Attorney General Letitia James.
The court upheld the finding that Donald Trump, his company, two adult sons, and two former executives committed long-running financial fraud, including falsifying business records, issuing false financial statements, and committing insurance fraud.
However, the appellate court threw out the massive civil penalty, which had ballooned to nearly $500 million (or more than $515 million with interest) after being imposed by Judge Arthur Engoron in February 2024.
Judges Dianne Renwick and Peter Moulton concluded that the penalty violated the Eighth Amendment’s prohibition against excessive fines.
The fractured ruling, issued by a five-judge panel with sharp divisions, also leaves other aspects of the judgment intact—restrictions on corporate leadership roles, including barring Trump and his two eldest sons from certain leadership positions in New York, remain on hold during the appeal process. A court-appointed monitor will continue oversight.
A copy of the court’s decision can be found here.
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