New York attorney general's civil fraud case against Trump and the Trump Organization (2022-2025) Case In February 2024 Judge Arthur Engoron found that Trump and his company fraudulently inflated his net worth to get better deals and ordered $464 million in disgorgement and interest. On Aug. 21, 2025 a divided appeals court voided the penalty, about $500 million with interest, as excessive while upholding the fraud liability and limits on doing business in New York. Trump called it a total victory; Attorney General Letitia James said liability was affirmed. Both sides appealed to the state's highest court, and no decision was found. The ruling and the penalty (Feb. 2024) In February 2024, Judge Arthur Engoron found that Trump and his company fraudulently inflated his net worth to get better deals and ordered $464 million in disgorgement and prejudgment interest, temporarily barring Trump and his sons from running New York businesses. Trump's lawyers argued that the case reached transactions outside the statute of limitations, misapplied the law and produced an excessive penalty. The appeal (Aug. 2025) and the responses On Aug. 21, 2025, a divided appeals court voided the penalty, roughly $500 million with interest, as excessive, while upholding the fraud liability and the limits on doing business in New York. Trump posted "TOTAL VICTORY"; Attorney General Letitia James said the court had affirmed that Trump, his company and two of his children are liable for fraud. Trump's lawyer Alina Habba said the ruling confirmed the case was politically motivated and legally baseless. James appealed to the state's highest court, and Trump and his sons appealed as well; no decision from that court was found. What stands, what is on hold, and the amounts Attorney General James's statement says the First Department affirmed that Trump, his company and two of his children are liable for fraud and upheld the injunctive relief limiting Trump's and Trump Organization officers' ability to do business in New York, and that her office would seek appeal to the Court of Appeals. The AP reported that the five-judge panel, sharply divided on many issues, narrowly endorsed the trial court's finding of fraud and left other punishments in place, but those measures have been on hold during the appeal process, and the judges said Trump could seek an order extending the pause. The AP put the amount at more than $515 million with interest by the time of the ruling; the $464 million figure from February 2024 included prejudgment interest at that earlier date. Eric Trump said the family business was relentlessly targeted in a politically motivated attack driven by a partisan attorney general. Commercial Observer reports that one of the judges, David Friedman, said he believed the attorney general's true aim was to influence the 2024 election and cripple Trump financially; this is that judge's view, not the court's holding. Perspectives Defender — Trump and his lawyers (including Alina Habba) The case was politically motivated, legally baseless and grossly excessive, reached transactions outside the statute of limitations, and the appeals court's voiding of the penalty was a total victory. Official position — New York Attorney General Letitia James The appeals court affirmed the trial court's finding that Trump, his company and two of his children are liable for fraud and upheld the limits on doing business in New York; her office appealed the voiding of the penalty to the state's highest court. Research notes Created Oct. 18, 2026 from sources first used in the denials synthesis entry, then strengthened with the New York attorney general's Aug. 21, 2025 statement (primary; the plaintiff's account), the AP's report on the notice of appeal and Commercial Observer's account of the ruling. Search excerpts only for the news sources; the court's opinions were not read. The dollar figures vary with the date and whether interest is counted. Open leads: (1) the trial judge's rulings (the 2023 summary-judgment ruling on liability and the February 2024 decision) and the Appellate Division's three opinions, including the dissents and the separate view of one judge that the case was aimed at the 2024 election. (2) The Court of Appeals docket: whether it has taken the case, argument dates and any ruling; none was found. (3) How the penalty and the injunctive limits are being handled while the appeals proceed. (4) The claims against Trump's sons, the former executives and Ivanka Trump (the latter dismissed earlier, per an ABC excerpt). (5) The federal investigations of Attorney General James that her lawyer has linked to this case; this may deserve its own entry once sourced. (6) The bond Trump posted during the appeal. Note Trump and his lawyers say the case was politically motivated and baseless; the appeals court threw out the penalty as excessive but upheld the fraud liability, and the appeals to New York's highest court are unresolved. Sources [1] ABC News (via WABC): Donald Trump appeals his $454M New York civil fraud case (https://abc7news.com/post/former-president-donald-trump-appeals-454-million-new/15083073/) · 2024-07 [2] CNBC: Trump half-billion-dollar civil fraud fine overturned by New York appeals court (https://www.cnbc.com/2025/08/21/trump-fraud-new-york-appeals.html) · 2025-08-21 [3] The Hill: Letitia James appeals ruling that wiped Trump penalty in civil fraud case (https://thehill.com/regulation/court-battles/5486850-letitia-james-appeals-trump-penalty-ruling/) · 2025-09 [4] Yahoo News: New York Appeals Court Tosses Out $464 Million Civil Fraud Penalty Against Donald Trump (https://www.yahoo.com/news/articles/york-appeals-court-tosses-464-163844715.html) · 2025-08-21 [5] New York Attorney General: statement on First Department opinion affirming Donald Trump is liable for fraud (Aug. 21, 2025) (https://ag.ny.gov/press-release/2025/attorney-general-james-releases-statement-first-department-opinion-affirming) · 2025-08-21 [6] AP via WCAX: NY attorney general asks court to reinstate President Trump's massive civil fraud penalty (https://www.wcax.com/2025/09/05/ny-attorney-general-asks-court-reinstate-president-trumps-massive-civil-fraud-penalty/) · 2025-09-05 [7] Commercial Observer: On Trump civil fraud decision, both sides claim a win (https://commercialobserver.com/2025/08/trump-civil-fraud-fine-tossed-appeals-court/) · 2025-08 Connections Shared mechanism — Denials in the face of documented facts: how Trump, his family, his businesses, the White House and the Pentagon have answered fraud and conflict-of-interest allegations (2017-2026) Trump's "total victory" claim, set against the appeals court's upholding of the fraud liability, is compared in the between-terms section here; the linked entry holds the full account.