Trump's legal team appeals liability finding in New York fraud case

<p>On August 26, 2026, representatives of President Donald Trump filed a brief in the New York Court of Appeals, arguing that the court should overturn a liability finding in a $464 million civil fraud case concerning Trump's real estate valuations.</p><p>The appeal contends that the case had several legal flaws that should have prevented it from being heard. The appeal states, "This case should have never been brought, and the judgment cannot stand. This case is extremely unusual; it involves not only reams of improper statements targeting President Trump, his family, and his businesses, but also a decision to apply [New York law] against those targets in a completely unprecedented and unlawful way."</p><p>This appeal is part of Trump's response to what he describes as politically motivated legal actions he has faced during and after his presidencies. It provides him with an opportunity to challenge some of the penalties stemming from the previous verdict.</p><p>In 2022, New York Attorney General Letitia James sued Trump, alleging 200 instances of fraud. Her office claimed that Trump had routinely overvalued properties in New York City to secure favorable loans or insurance rates, violating New York Executive Law § 63(12), which directs the attorney general to prosecute cases of repeated fraudulent or illegal acts.</p><p>The law defines fraud as "any device, scheme or artifice to defraud and any deception, misrepresentation, concealment, suppression, false pretense, false promise or unconscionable contractual provision." Trump was found liable in 2023.</p><p>As a result of the ruling, Trump was ordered to pay $355 million plus interest in damages and was barred from serving as an officer or director of any New York company for two years. He was also prohibited from applying for loans from any New York bank or financial institution for three years. Although an intermediate appeals court later vacated the monetary award, Trump's legal team argues that the underlying liability finding and remaining restrictions should also be overturned.</p><p>The appeal filed on Wednesday challenges the verdict on five main points. It argues that Attorney General James lacked the authority to bring the case, emphasizing that it involves private commercial transactions rather than public harm. Additionally, it asserts that Trump's property valuations were subjective estimates that lenders independently assessed, rather than fraudulent misrepresentations.</p><p>The appeal states, "The only supposed 'victims' here are a handful of ultrasophisticated banks and insurers that have never claimed to be injured, were eager to do business with President Trump and his family, and made over $100 million from these transactions."</p><p>Furthermore, the appeal argues that the prosecution's basis for claiming overvaluation is flawed, suggesting that it assumes real estate has a single objective value and that any deviation constitutes fraud. It states, "Under that breathtakingly broad theory, NYAG can second-guess any business transaction in this State on almost any imagined grounds."</p><p>Regarding penalties, the appeal claims that the $450 million disgorgement is excessive, unlawful, and potentially unconstitutional. It also posits that the politically charged nature of the case should have been sufficient to halt its consideration, stating, "NYAG cannot point to a single Section 63(12) enforcement action against similarly situated developers (or any other type of defendant) based on practices comparable to those alleged here."</p><p>The appeal concludes by noting statements made by James, who has referred to Trump as a "criminal" and promised to investigate his business transactions and real estate dealings in New York, as well as threats directed at Trump's family and associates. James' office did not immediately respond to a request for comment.</p>