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The president Donald Trump successfully overturned the penalty of more than 500 million dollars that was imposed on him for civil fraud in New York.
However, the appellate court's ruling does not signify a happy ending for the mogul. According to a report by AP, his company will remain under external supervision and he and his older children are still barred from running companies in the state for several years.
The Appeals Division of the New York Supreme Court found that the original fine of $355 million—which, with interest, totaled $515 million—violated the constitutional prohibition against excessive fines.
The judges noted that, although there was fraud, the damages were not of such a magnitude as to warrant such a severe financial penalty.
The court, however, upheld the corporate control measures imposed by Judge Arthur Engoron following the trial held in 2023. Among these measures is the appointment of an independent monitor to oversee the finances of the Trump Organization and the requirement to issue regular reports on its accounting for three years.
Additionally, Trump will not be able to hold business leadership positions in New York during that same period, while his sons Donald Trump Jr. and Eric Trump face a two-year disqualification.
These restrictions aim, according to the judges, to prevent the recurrence of fraudulent practices found in the company's financial statements.
Although Trump celebrated the decision as a "total vindication," Attorney General Letitia James stated that she will appeal to the Court of Appeals, the highest judicial authority in the state.
James, who sued Trump in 2022 for systematically inflating the value of his properties to gain financial advantages, insists that the president “deceived the financial system for years” and must be held accountable.
Trump had posted a bail of 175 million dollars while processing his appeal, which allowed him to avoid immediate payment of the fine. He will now be able to recover that money, but he will continue to face judicial scrutiny that limits his business maneuverability in one of the most important markets for his real estate empire.
The ruling also opens the door to a potential new trial, as some judges on the panel believed that the original process did not meet all legal guarantees. This possibility, however, divides the magistrates and keeps uncertainty surrounding the future of the case.
Meanwhile, the Trump brand will remain under the constant oversight of a court-appointed supervisor, an unprecedented situation for a former U.S. president and candidate seeking to return to the White House in the 2024 elections.
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