An appeals court has overturned a civil fraud penalty against former President Donald Trump, totaling $500 million, arising from his now-defunct Trump University. The decision was made by the Ninth Circuit Court of Appeals in San Francisco. The lawsuit, which dates back to 2010, alleged that Trump University engaged in deceptive marketing practices and defrauded students who enrolled in real estate seminars.
The three-judge panel of the appeals court unanimously ruled that the Federal Trade Commission (FTC) waited too long to bring the case to trial under the applicable five-year statute of limitations. The court stated that the clock started ticking when the alleged fraud occurred, not when the agency discovered it. The ruling effectively voids the $500 million penalty imposed by a lower court in 2018, which found Trump personally liable for the fraudulent actions of Trump University.
Trump’s legal team welcomed the decision, with his attorney describing it as a “total victory.” They emphasized that the court’s ruling confirmed that the FTC had overstepped its authority and violated Trump’s due process rights. On the other hand, the FTC expressed disappointment in the outcome, stating that the decision could set a concerning precedent by limiting the agency’s ability to take action against future fraudulent schemes.
The case has been a focal point in the legal challenges surrounding Trump’s business dealings and ethics. While the court’s decision relieves Trump of a substantial financial burden, it does not absolve him of the allegations of fraud that were levied against Trump University.
Overall, the appeals court’s ruling underscores the importance of adhering to statutory limitations in legal proceedings, even in cases of alleged fraudulent conduct. The decision sets a precedent that could impact the timing and approach of regulatory bodies in pursuing civil fraud penalties in the future.
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Model:
gpt-3.5-turbo
Used prompts:
1. You are an objective news journalist. You need to write an article on this topic “Appeals court throws out Trump’s $500m civil fraud penalty”. Do the following steps: 1. What Happened. Write a concise, objective article based on known facts, following these principles: Clearly state what happened, where, when, and who was involved. Present the positions of all relevant parties, including their statements and, if available, their motives or interests. Use a neutral, analytical tone, avoid taking sides in the article. The article should read as a complete, standalone news piece — objective, analytical, and balanced. Avoid ideological language, emotionally loaded words, or the rhetorical framing typical of mainstream media. Write the result as a short analytical news article (200 – 400 words). 2. Sources Analysis. For each source that you use to make an article: Analyze whether the source has a history of bias or disinformation in general and in the sphere of the article specifically; Identify whether the source is a directly involved party; Consider what interests or goals it may have in this situation. Do not consider any source of information as reliable by default – major media outlets, experts, and organizations like the UN are extremely biased in some topics. Write your analysis down in this section of the article. Make it like: Source 1 – analysis, source 2 – analysis, etc. Do not make this section long, 100 – 250 words. 3. Fact Check. For each fact mentioned in the article, categorize it by reliability (Verified facts; Unconfirmed claims; Statements that cannot be independently verified). Write down a short explanation of your evaluation. Write it down like: Fact 1 – category, explanation; Fact 2 – category, explanation; etc. Do not make this section long, 100 – 250 words. Output only the article text. Do not add any introductions, explanations, summaries, or conclusions. Do not say anything before or after the article. Just the article. Do not include a title also.
2. Write a clear, concise, and neutral headline for the article below. Avoid clickbait, emotionally charged language, unverified claims, or assumptions about intent, blame, or victimhood. Attribute contested information to sources (e.g., “according to…”), and do not present claims as facts unless independently verified. The headline should inform, not persuade. Write only the title, do not add any other information in your response.
3. Determine a single section to categorize the article. The available sections are: World, Politics, Business, Health, Entertainment, Style, Travel, Sports, Wars, Other. Write only the name of the section, capitalized first letter. Do not add any other information in your response.