Appeals Court to Hear Arguments in Civil Fraud Judgment Appeal #

An appeals court is set to hear arguments in a bid to dismiss a $454 million civil fraud judgment against a former president and his business associates. This hearing is one of several legal developments coinciding with the ongoing presidential campaign.

The appeal seeks to overturn a judgment issued in February by a state judge, who found the former president, his sons, and his business liable for fraud, issuing false financial statements, and false business records. The ruling stated that the defendants inflated asset values to obtain more favorable loan and insurance rates.

The judgment initially totaled $354 million, with an additional $100 million in interest accrued at the time of the ruling. Interest continues to accumulate at nearly $112,000 per day during the appeal process.

The hearing provides an opportunity for the defense to address grievances from the 11-week trial held last fall, during which there were frequent clashes between the defendant and the judge. In the ruling, the judge noted the defendants’ “complete lack of contrition and remorse.”

Defense attorneys have argued in written filings that the monetary penalty is unconstitutional and that much of the case should have been barred due to the age of the conduct in question. They also contend that no banks or counterparties lost money on loans, and claim the judge made reversible errors in his rulings.

The prosecution maintains that there is “overwhelming evidence” of knowing fraud and inflated property values on financial statements used to obtain loans. They argue that the defense has largely avoided discussing the specific deceptive practices used to inflate asset values in their appeal briefs.

The hearing represents another chapter in the ongoing legal battles surrounding the former president as his campaign continues.