President Donald Trump just secured another major legal win. On Thursday, a New York appeals court struck down a massive $500 million fraud penalty in a stunning 5-0 ruling. The unanimous decision was a direct blow to New York Attorney General Letitia James, who campaigned on “getting Trump.”
When New York Attorney General Letitia James ran in 2018, she called Trump an “illegitimate president,” promised to be a “pain in his ass,” said Trump was “fueling her soul,” said “I look forward every day to suing Trump.”
Today, she filed a civil suit against Trump and his kids pic.twitter.com/mDB8w9jfNQ
— Greg Price (@greg_price11) September 21, 2022
The ruling did not erase liability in the case. But it eliminated the crushing fine that had ballooned to more than $550 million with interest. For Trump and his two sons, this decision is a massive victory in a long, politically charged battle. (MORE NEWS: Texas House Passes “One Big Beautiful Map” in GOP Victory)
A 5-0 Decision Against Excessive Punishment
The New York Appellate Division spent nearly a year before releasing its decision. After 11 months of deliberation, the five-judge panel ruled the penalty was unconstitutional.
In its 323-page decision, the court said that Engoron’s ruling went too far. Judges Dianne T. Renwick and Peter H. Moulton wrote the main opinion:
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution.”
The opinion was anything but narrow. All five judges agreed the fine was “excessive.” That unanimous vote shows the extreme overreach of Justice Engoron’s court.
Restrictions Remain, but James Suffers a Blow
The appeals court did keep some restrictions in place. Trump’s sons, Donald Jr. and Eric, remain barred from running a company in New York for a few years. The court also upheld the appointment of an outside monitor to oversee the Trump Organization’s business dealings for three years.
Even so, Thursday’s ruling gutted the core of Engoron’s punishment. James’ legal team and Engoron had hoped to crush Trump financially. Instead, their campaign of lawfare suffered a devastating setback.
A Political Prosecution from the Start
Trump has always maintained his innocence. He called the case a sham and accused James of carrying out political persecution.
The facts back him up. This trial dragged on for 11 weeks, right in the middle of the presidential campaign. Prosecutors worked to keep Trump off the trail. They wanted to smear his reputation.
Yet the case had no victims. Deutsche Bank, the bank that issued the loans, testified it was satisfied with Trump’s payments. The loans were repaid on time and in full. No harm, no foul. But James twisted the law to claim that Trump “hurt the marketplace.”
BLATANT INJUSTICE: “[Letitia James] said she was going to get Trump as part of her political campaign, and tried to throw whatever would stick.” @rogerseverino_ pic.twitter.com/FK93ygtGmF
— Heritage Foundation (@Heritage) October 3, 2023
As Judge Peter Moulton noted during hearings last fall, the penalty was “troubling.” He questioned whether James’ use of the statute had “morphed into something it was not meant to do.” His skepticism has now been confirmed by a unanimous court.
Letitia James Under Fire
Letitia James has her own problems. Ed Martin, director of the Justice Department’s Weaponization Working Group, has called for her resignation. James is under investigation for mortgage fraud involving a Brooklyn townhouse and a Virginia home. (MORE NEWS: Trump and His ‘Art of the Deal’ for Ukraine Peace)
According to the U.S. Federal Housing FHFA, she falsely claimed both homes as her primary residence to secure lower interest rates. On one application, she even listed her father as her husband. If found guilty, she could face 30 years in prison and a $1 million fine.
While James rails against Trump for “fraud,” she faces criminal scrutiny herself. That hypocrisy has not gone unnoticed.
Trump Responds: “TOTAL VICTORY”
President Trump celebrated the ruling on Truth Social. He declared:
“TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case! … Importantly, the Vote was 5 to 0. I am so honored by Justice David Friedman’s great words of wisdom, which should be read by everyone. I would also like to thank the Court for having the Courage to make this Decision, which is already going down as one of the worst business persecutions in the History of our Country.”
Trump’s words highlight the significance of the ruling. For months, the media portrayed him as a convicted fraudster. Now, a unanimous appellate court has dismantled the heart of the court’s decision.
James Refuses to Back Down
Despite the loss, James claimed victory. In a statement, she vowed to appeal:
“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. 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. We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers.”
Her statement shows she is not giving up. Her crusade of persecution continues. Even after a 5-0 ruling, James refuses to accept defeat.
Why This Matters
This ruling is about more than Donald Trump. It is about the abuse of power. The left has weaponized the courts to target political opponents. James promised voters she would take down Trump. She delivered a partisan prosecution, not justice.
But the Constitution still matters. The Eighth Amendment prohibits excessive fines. This unanimous ruling sends a strong message: political vendettas cannot override constitutional rights.
The Bigger Picture
The left wanted to bankrupt Trump. They tried to weaken him before November. Instead, he walked away the President of the United States—a man who is stronger than ever—with a court victory that validates what conservatives have argued all along: this was never about justice. It was about politics.
The witch hunt isn’t over, but Thursday’s ruling proves that even in blue New York, the Constitution still stands.
Cut Through the Noise. Slice Through the Lies. Share the Truth.
At The Modern Memo, we don’t tiptoe around the narrative—we swing a machete through it. The mainstream won’t say it, so we will.
If you’re tired of spin, censorship, and sugar-coated headlines, help us rip the cover off stories that matter. Share this article. Wake people up. Give a voice to the truth the powerful want buried.
This fight isn’t just ours—it’s yours. Join us in exposing what they won’t tell you. America needs bold truth-tellers, and that means you.
