Trump Avoids Accountability Yet Again as Civil Fraud Ruling Tossed

Donald Trump might not have to pay the piper after all.

A New York appeals court threw out the president’s $500 million civil fraud fine Thursday, claiming the resulting penalty for the Trump Organization’s bank fraud case was an “excessive fine.”

“The court’s disgorgement order, 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,” Justice Peter Moulton wrote in one of three opinions.

The contentious decision from the five-judge panel paves the way for the case to advance to New York’s highest court.

At least two judges on the court agreed with the original ruling that found Trump and his co-defendants liable for fraud, noting that the injunctive relief ordered by the presiding judge  was “well crafted to curb defendants’ business culture.” However, the final page of the order states that “three out of the five members of this panel clearly believe that the judgment should be vacated” on the basis that the “attorney general has not yet proven her case.”

Since Trump lost the case, his attorneys have argued that the fine was “grossly disproportionate” to his offenses, which included defrauding banks, insurance companies, and investors by falsely inflating his wealth and the value of his properties.

The penalty had left Trump and his portfolio in a whopping financial pickle. The former real estate mogul tried and failed to pause growing interest on the judgment, at one point counter-offering the court a $100 million bond in lieu of the full amount. 

He also approached several brokers and upwards of 30 suretors for help in securing a bond, though his attorneys claimed he was unsuccessful in doing so as the suretors refused to accept Trump’s real estate as collateral. Instead, they would only accept cash to the tune of $1 billion, which Trump claimed last year he didn’t have.

New York Attorney General Letitia James had threatened to seize some of Trump’s largest assets—including 40 Wall Street and Trump Tower—to cover the outstanding disgorgement. 

The decision also restricted the Trump Organization from borrowing cash and barred Trump’s two eldest sons from doing business in New York for two years.

James has been a target of Trump’s retribution campaign since he returned to the White House. Earlier this month, the Justice Department opened an investigation into James and her work, accusing her of violating Trump’s constitutional rights by taking legal action against him.

This story has been updated.