Trump appeals $454 million ruling in New York fraud case
Former President Donald Trump on Monday officially began the process of appealing the historic $454 million judgment against him in his New York civil fraud case, a figure that is growing by more than $100,000 in interest every day.
In order to qualify for an automatic stay of the judgment as the appeal proceeds, Trump must fork over the entire amount as bond, known in the New York civil court system as an "undertaking."
Trump has not posted the bond, according to a spokesperson for New York Attorney General Letitia James. The spokesperson declined to comment on the appeal.
Trump attorney Clifford Robert summarized the issues Trump and other defendants will press on appeal in a pair of notices filed Monday morning. They have asked the Appellate Division, First Department — part of New York's second-highest court — to consider whether Judge Arthur Engoron "committed errors of law and/or fact, abused [his] discretion, and/or acted in excess of [his] jurisdiction" when overseeing the case.
In addition to the massive financial sanction, Engoron's Feb. 16 decision enjoined the defendants from seeking loans from any financial institution registered with New York state for three years. He also barred Trump and two executives from serving on the board of directors of any company in the state for the same amount of time, and imposed the same penalty on his sons Donald Jr. and Eric for two years. The ruling called for the installation of an independent director of compliance at the Trump Organization and continued oversight by an independent monitor.
Trump and the defendants are appealing all sanctions in Engoron's ruling.
"We trust that the Appellate Division will overturn this egregious fine and take the necessary steps to restore the public faith in New York's legal system," Trump attorney Alina Habba said in a statement to CBS News.
Engoron's 92-page ruling was one of the largest corporate sanctions in New York history. The judge found that Trump and others were liable for a decade of frauds that "leap off the page and shock the conscience."
He ordered $354 million in disgorgement, the amount of "ill-gotten gains" they made through a scheme to use fraudulent valuations of properties and Trump's net worth to land favorable loans and insurance terms. That figure jumps more than $100 million with years of interest factored in. Experts say it is unlikely Trump will be able to use funds from his presidential campaign to cover any of the judgment.
"Their complete lack of contrition and remorse borders on pathological," Engoron wrote. "They are accused only of inflating asset values to make more money. The documents prove this over and over again."
Engoron concluded that Trump and other defendants submitted "blatantly false financial data" to accountants, who compiled financial statements based on those falsehoods that were submitted to lenders and insurers.
"When confronted at trial with the statements, defendants' fact and expert witnesses simply denied reality, and defendants failed to accept responsibility or to impose internal controls to prevent future recurrences," Engoron wrote.