Appeals panel questions New York civil fraud judgment against Trump

The judges on the New York appeals court holding the hearing Thursday on former President Trump’s appeal of a $454 million judgment against him and top executives at the Trump Organization seemed skeptical of the scope of the attorney general prosecuting the case and the size of the penalty imposed.

Trump's lawyers are trying to overturn the judgment levied in February by state Judge Arthur Engoron who found that Trump, his sons Donald Trump Jr. and Eric Trump, and his business liable for fraud, as well as issuing false financial statements and false business records, according to CNN. 

The appeal in the civil fraud case is is being considered by a five-judge panel, which questioned Deputy New York Solicitor General Judith Vale about the lack of alleged victims – in addition to the scope of attorney general prosecuting the case and the size of the penalty Engoron imposed, the news outlet also reports. 

“How do we draw a line, or at least put up some guardrails, to know when the AG [attorney general] is operating well within her broad – admittedly broad sphere … and when she is going into an area that wasn’t intended for her jurisdiction?” Justice John Higgitt asked.

On the penalty amount, Vale said it was large number for a couple reasons including "because there was a lot of fraud and illegality."

Many of the panel's questions were also related to the law that state Attorney General Letitia James, a Democrat, used to bring the action against Trump and his business, CNN also reports.

Justice David Friedman, for instance, questioned her authority given that Deutsche Bank is not saying they were harmed by Trump’s actions.

“It hardly seems to justify bringing an action to protect Deutsche Bank against President Trump which is what you have here,” Friedman said. “You have two really sophisticated players in which no one lost any money.”

Vale responded by saying the statute doesn’t require that and pushed back on the idea that Deutsche Bank wasn’t harmed by the financial statements, also according CNN.