Lawyers for former President Donald Trump and the New York Attorney General Letitia James’ office are set to argue in front of a state appeals court over a $454 million civil fraud judgment against Trump. The judgment, with accruing interest, has grown to over $478 million. Trump’s legal team is seeking to have the judgment overturned, arguing that James’ lawsuit was brought too late and that the assets were undervalued.
Trump contends that the alleged fraud did not harm anyone and therefore should not be considered a violation of the New York fraud statute. His lawyers emphasize that the Trump Organization repaid loans to Deutsche Bank that were provided based on the financial statements deemed fraudulent by the trial judge. James’ office argues that the fraud statute aims to prevent future harm, not just address past harm.
Trump also argues that James’ lawsuit was filed too late for most of the allegations, seeking to eliminate nearly $351 million from the total judgment. However, Engoron ruled that the lawsuit window was extended due to continued submission of fraudulent financial statements and an agreement to extend James’ time limit to file the suit.
If Trump loses his appeal and fails to pay the full judgment, James could move to seize his assets, including real estate and bank accounts. The judgment automatically becomes a lien on Trump’s Manhattan properties, but James could go after assets in other jurisdictions as well. She could also redirect rental payments and freeze bank accounts in New York to satisfy the judgment.
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