Trump to ask New York appeals court to toss nearly $500 million civil fraud judgment

Donald Trump's lawyers later on Thursday will seek to persuade a New York state appeals court to toss a nearly half-billion dollar judgment against the former US president over real estate business practices a court has declared fraudulent.

Justice Arthur Engoron in February ordered Trump, the Republican nominee for the November 5 election, to pay $454.2 million in penalties and interest for inflating his net worth to induce bankers into giving him better loan terms, in a civil case brought by New York state Attorney General Letitia James.

The judge's ruling poses a threat to the business empire Trump has built over decades, which includes hotels, office buildings and golf courses around the world. With interest continuing to accrue, Trump now owes $478.3 million.

The case is one of a number of legal entanglements Trump has faced since leaving the White House in 2021. He owes nearly $90 million in federal civil penalties for defaming a writer who accused him of sexual abuse, and was convicted in May on criminal charges stemming from hush money paid to a porn star.

Trump has denied all wrongdoing and argues the cases were brought to interfere with his campaign. A Reuters/Ipsos poll on Tuesday showed Vice-President Kamala Harris, the Democratic nominee, leading Trump 47%-40% nationwide, though the state-by-state results of the Electoral College determine the winner.

In a brief submitted in July to the Appellate Division - the mid-level state appeals court - Trump's lawyers argued that the financial statements he submitted to banks actually understated his wealth and there was no indication that any of the lenders suffered losses.

The lawyers also accused James, a Democrat, of targeting a political adversary.

"This politically motivated prosecution attempts to penalise purely proper and lawful conduct," Trump's lawyers wrote.