Letitia James Speaks Out After $515 Million Judgment Against Trump Tossed [WATCH]

New York appeals court on Thursday struck down the $515 million civil fraud judgment against President Donald Trump, reversing a major penalty that had been imposed after a trial court ruling last year.

The case, brought by New York Attorney General Letitia James, accused Trump of inflating the value of his assets to defraud lenders and insurance companies.

James initially sought $370 million in damages and asked the court to bar Trump and his two eldest sons from operating any businesses in New York.

Trump’s Sovereign Wealth Fund: What Could It Mean For Your Money?

Following the trial, Judge Arthur Engoron ordered Trump to pay more than $355 million in penalties and barred him “from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years.”

Engoron claimed Trump and the defendants “participated in aiding and abetting the conspiracy to commit insurance fraud by their individual acts in falsifying business records and valuations, causing materially fraudulent SFCs to be intentionally submitted to insurance companies.”

The appeals court ruling vacated the financial judgment, a decision that significantly alters the case’s immediate impact. However, the court left in place certain restrictions on Trump and his business operations in New York.

This Could Be the Most Important Video Gun Owners Watch All Year

[esi random_video_player ttl=”0″]

Attorney General James issued a statement after the ruling, vowing to continue her legal pursuit.

“The First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud,” James said.

“The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers’ ability to do business in New York. It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit,” she continued.

“We will seek appeal to the Court of Appeals and continue to protect the rights and interest of New Yorkers,” James added.

My statement on the opinion affirming Donald Trump, his company, and two of his children are liable for fraud: pic.twitter.com/7OdOVsCWlf

— NY AG James (@NewYorkStateAG) August 21, 2025

The original lawsuit alleged that Trump had exaggerated the value of properties and other assets in financial statements, claims that the defense argued involved no victims or financial losses to banks or insurers.

James’ office moved aggressively after Engoron’s ruling, seeking to seize Trump’s assets when he initially struggled to secure a bond to cover the judgment.

Trump and his legal team maintained that the penalty was excessive and that the ruling unfairly targeted him and his family business.

Thursday’s appellate decision represents a significant change in the trajectory of the case.

While the financial judgment has been overturned, the continued business restrictions and the attorney general’s stated intention to appeal mean the case is far from concluded.

The Court of Appeals, New York’s highest court, would be the next venue for James’ appeal if it moves forward.

That court will determine whether the liability findings and injunctive orders should stand or be further modified.

The civil fraud case is one of several legal challenges President Trump has faced in recent years.

The decision to throw out the penalty underscores the ongoing legal and political battles surrounding his business empire and his role in New York’s financial and political landscape.

As of now, Trump remains subject to restrictions on his ability to serve as an officer or director of corporations in New York.

The attorney general’s office has confirmed that it intends to continue pressing the case through the state’s highest court.