NEW YORK: Donald Trump on Monday appealed a judge’s ruling that the former US president must pay $454 million in penalties and interest for fraudulently exaggerating his net worth and the values of his real estate holdings to secure better loan terms.
Trump asked an intermediate-level state appellate court to overturn Justice Arthur Engoron’s Feb 16 ruling in a civil fraud lawsuit brought in 2022 by New York Attorney General Letitia James. The ruling included a $354.9 million penalty and limits on his ability to do business in New York state.
The penalties, along with sizable jury awards in two other civil cases, could become a drain on Trump’s cash reserves and hobble parts of his real estate empire as he pursues the Republican nomination to challenge President Joe Biden in the Nov 5 US election.
James, a Democrat, accused Trump in the lawsuit of overstating his net worth by as much as $3.6 billion in financial statements provided to banks. Trump has accused James and Engoron of political bias against him.
In addition to imposing the monetary penalties, Engoron’s decision barred Trump from running a corporation in New York or seeking loans with banks chartered or registered in the state for three years. The judge also enhanced the powers of a court-appointed financial watchdog at the Trump Organization, the umbrella entity for the former president’s business ventures.