NY state presses court to uphold Trump civil fraud judgment

New York state lawyers are urging an appeals court to uphold a multimillion-dollar civil fraud judgment against former President Trump, contending that "overwhelming evidence" backs up a state judge's finding that he conspired to alter his net worth for tax and insurance benefits.

In a late Wednesday filing, New York Attorney General Letitia James's office argued that Trump, his company and top executives used a "variety of deceptive strategies" to misrepresent the former president's assets, but in their appeal, ignored evidence showing they engaged in "fraud and illegality on an immense scale."

"On appeal, defendants tellingly ignore almost all their deceptions," Assistant Solicitor General Daniel Magy wrote in the 168-page filing.

Instead, Trump repeated arguments made at trial that banks wanted to work with the Trump Organization, did their own due diligence and found no fraud, Magy said. In their own filing last month, Trump's attorneys called Judge Arthur Engoron's staggering $464 million, plus interest, ruling against the former president and his co-defendants an “unauthorized, unprecedented power-grab" and said there were "no victims and no losses" from the company's business deals.

"But it is well-established that neither reliance nor victims’ losses — which are elements of common-law fraud — is required for § 63(12) fraud or illegality claims where, as here, OAG seeks disgorgement and injunctive relief rather than damages or restitution," Magy wrote. "Indeed, one of § 63(12)’s core remedial purposes is to protect the honesty and integrity of commercial marketplaces in New York by stopping fraudulent and illegal practices before they cause financial losses to market participants or broader harms to the public."

The state Appellate Division said earlier this week it will hear Trump's appeal on Sept. 26, weeks before Election Day where Trump will face off against Vice President Harris for the White House. The court typically rules about a month after arguments, meaning a decision could come before then.

Trump's fortune, which he rode to fame and is closely tied to his public identity, could take a massive hit from the astronomical financial penalties imposed by the judge. As of Thursday, Trump and his co-defendants owed more than $485 million, which includes interest that continues to increase by nearly $112,000 per day until he pays or the verdict is overturned.

The former president posted a $175 million bond earlier this year which ensures that James’s office can’t collect the judgment while they appeal and pauses other penalties. The bond amount was originally set at the full judgment amount, but an appeals panel agreed to lower the price when Trump’s lawyers said it would be “impossible” for him to secure a full bond.

The New York appeals court could affirm Engoron's ruling, reduce or change the penalty or toss out the decision entirely. If Trump's appeal fails, he can ask the state's highest court to take his case.

The Associated Press contributed.