NEW YORK — New York Attorney General Letitia James is forging ahead with an appeal in her high-profile civil fraud case against President Donald Trump, undeterred by a federal investigation into her office. On Sunday, August 24, 2025, Benzinga reported James’s commitment to take the case to New York’s highest court after a divided appeals court last week overturned a nearly $500 million penalty against Trump, his sons, and their company, while affirming they engaged in fraud.
The original ruling, issued by Judge Arthur Engoron in February 2024, found Trump liable for inflating his net worth to secure better loan terms, ordering a $464 million fine that grew to over $527 million with interest. Although the Appellate Division deemed the penalty excessive, James emphasized the court’s core finding. “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,” she stated, vowing to protect New Yorkers’ rights.
Meanwhile, the Justice Department has intensified scrutiny, issuing subpoenas for documents related to James’s cases against Trump and the NRA. Federal prosecutors are probing whether James violated Trump’s civil rights, while a separate investigation examines her personal real estate dealings, alleging she falsified records for loan benefits. James’s attorney, Abbe Lowell, called the probes a “blatant and desperate example of this administration carrying out the president’s political retribution campaign.”
Trump celebrated the penalty’s dismissal as a “TOTAL VICTORY” on Truth Social, while his sons, Eric and Donald Jr., labeled the case a “witch hunt.” Legal experts, however, note the ongoing battle’s complexity. “It almost looked to me like the Appellate Division was passing the buck to the Court of Appeals,” said Pace University law professor Bennett Gershman. As James prepares for the next legal round, the clash with Trump and the DOJ underscores deep political tensions.
Source: Benzinga
