NY Court Drops $500m Civil Fraud Penalty Against Trump

Donald Trump declared a "win for America" yesterday after a massive civil fraud penalty against him was dropped in a New York lawsuit accusing the president of exaggerating his wealth prior to re-election.

- Marina Dunbar

The decision, which was not unanimous, came seven months after the Republican returned to the White House. A panel of five judges in New York's mid-level appellate division said the verdict, which stood to cost Trump $515m (£383m) and rock his real estate empire, was "excessive".

After finding that Trump engaged in fraud by flagrantly padding financial statements that went to lenders and insurers, the judge Arthur Engoron ordered him last year to pay $355m in penalties. With interest, the sum has topped $515m.

The total - combined with penalties levied on some other Trump Organization executives, including Trump's sons Eric and Donald Jr - now exceeds $527m, with interest.

Engoron had also barred Trump and his sons from corporate leadership roles for several years. Those restrictions were paused pending appeal, and Trump delayed payment by posting a $175m bond.

The appeals court dismissed the financial penalty imposed by Engoron but left room for further appeals to the state's highest court. The panel took nearly 11 months to issue its decision.

Trump has denied wrongdoing, claiming the case was a "fraud on me". He continues to argue that the lawsuit is politically motivated.