New York Attorney General Letitia James’ victory in the civil fraud case against former President Donald Trump may be in jeopardy.
Legal experts warn that the nearly $500 million penalty could face “outright reversal” by an appeals court.
Former federal prosecutor Joyce Vance made these comments on the CAFE Insider podcast, co-hosted with Preet Bharara, after Trump’s lawyers appealed the penalty.
The lawsuit, originally filed by James, resulted in a ruling by Judge Arthur Engoron that Trump inflated his wealth to secure loans and make deals, leading to the hefty financial penalty.
However, during the appeal hearing, some judges expressed concern over the size of the penalty, calling it “troubling.”
Trump’s legal team argued that the penalty was “draconian,” with no direct victims, as the banks involved were satisfied with the transactions. In contrast, the New York Deputy Solicitor General, Judith Vale, defended the penalty, citing the scale of the fraud.
Vance remarked that while appellate judges often defer to trial judges on factual matters, they are more likely to reconsider legal theories and interpretations of the law.
This has raised doubts about whether the initial ruling will hold.
“This was not a good day in court for Tish James,” Vance noted, suggesting the case could be in jeopardy.
The final outcome remains uncertain, with potential outcomes ranging from a reduction of the penalty to a complete reversal of the decision.
