In a stunning turn of events, a New York appeals court has wiped out a staggering $515 million civil fraud penalty against President Donald Trump, handing him a significant triumph over Democrat Attorney General Letitia James.
According to The Daily Caller, this ruling, delivered on Thursday, represents a sharp rebuke to James’ long-running case accusing Trump of inflating his net worth to secure better loan terms.
Let’s rewind to September 2022, when James first filed this lawsuit, claiming Trump built his real estate empire on fraudulent valuations.
Fast forward to Feb. 16, 2024, when Judge Arthur Engoran ruled in James’ favor, slapping Trump with a $355 million penalty that ballooned to nearly $500 million with interest.
Engoran also barred Trump from holding any corporate officer or director roles in New York for three years—a harsh blow at the time.
But the appeals court, after an unusually lengthy deliberation of nearly a year, decided otherwise, tossing out the massive damages award while allowing the liability finding to stand for now.
The judges’ reasoning was clear: there wasn’t enough evidence of actual victims in this case.
The supposed “victims” were billionaire banks that not only got their loan payments but also raked in millions in profits from dealing with Trump—hardly the picture of suffering James tried to paint.
CNN’s senior legal analyst Elie Honig called it like he saw it: “This ruling by the appeals court is monumental.” Well, no kidding—when half a billion dollars gets erased, that’s not just a win, it’s a landslide.
Honig didn’t hold back, stating, “This is a huge win for Donald Trump.” And he’s right—any way you slice it, this is a body blow to James’ crusade against Trump, exposing the shaky ground her case was built on.
In another comment, Honig noted the lack of victims as the core issue, saying there wasn’t “enough of a showing” of real harm. If banks walked away richer, where’s the crime? This ruling raises serious questions about whether this case was more about politics than justice.
Honig also pointed out the unusual timeline, remarking on the year-long wait for the decision. That kind of delay suggests even the court had to wrestle with the weight of this case—perhaps a sign of just how contentious James’ pursuit has been.
Meanwhile, James herself isn’t escaping the spotlight, as Attorney General Pam Bondi has appointed a special attorney to probe both James and California Sen. Adam Schiff over potential mortgage fraud issues.
Grand juries in Maryland and Virginia are even weighing whether to bring charges, and the Department of Justice’s Special Attorney Ed Martin inspected James’ Brooklyn home in April as part of this investigation.
It’s a curious twist—while James chased Trump for years, now she’s the one under the magnifying glass, and conservatives watching this unfold can’t help but wonder if the tables are finally turning on overzealous prosecutors.
