As Donald Trump’s legal team waits for a verdict in his appeal of a $480 million fraud judgment, the drawn-out process has sparked accusations that Governor Kathy Hochul is leveraging her authority over the judiciary to intimidate the president, the NY Post reports. Sources from the White House allege that Hochul told Trump, “I control the judges” during a February policy discussion in the Oval Office that included topics like the controversial Manhattan congestion pricing plan.
Hochul strongly refutes ever making such a remark.
Despite her denial, insiders say Trump interpreted her words as a veiled message connected to his ongoing appeal of a civil fraud judgment handed down in February 2024 by Judge Arthur Engoron, who ordered him to pay $364 million, accusing him of exaggerating his assets to gain more favorable loan terms.
According to a legal insider familiar with what transpired in the Oval Office, Hochul pushed Trump to support her agenda — including withdrawing opposition to the $9 congestion fee, shelving plans for a gas pipeline, and approving federal money for green energy efforts and Penn Station improvements.
“She’s making all these demands while the case hangs over his head,” the source claimed. “It feels like extortion and blackmail.”
Responding to the controversy, Hochul spokesman Avi Small dismissed the allegations, suggesting there may be a misunderstanding or deliberate distortion of the conversation.
“Governor Hochul has never said this, or anything similar, to President Trump or anyone,” Small insisted. “The Governor respects the independence of the judiciary, has never attempted to interfere in ongoing cases, and does not have any role to play in the judicial process — nor did she ever say that she did.
“Someone must have completely misheard the governor during this conversation, or they’re purposefully lying to advance a political agenda.”
A senior member of the Trump administration responded, “Of course she would deny attempting to extort the president of the United States. Just like she denied overseeing the weaponization of justice in her own state.”
A member of the administration, who was not at the meeting, said Hochul later tried to win favor with Trump by suggesting a tribute — renaming Moynihan Train Hall after him.
When asked about that, Small responded that the late Senator Daniel Patrick Moynihan was viewed by the governor as a “mentor” and that “under no circumstances would she ever propose changing the name of Moynihan Train Hall.”
Still, he admitted, “The governor did make a lighthearted joke about how to get President Trump interested in contributing federal funds to renovate Penn Station.”
Legal observers have noted that the delay in resolving Trump’s appeal — now over a year — far exceeds the average turnaround time for the First Department of the Appellate Division.
“In the ordinary course, an appeal in the First Department is decided about five to six months from the date an appellant files an opening brief and record,” said Bill White, senior appellate counsel at Counsel Press LLC.
Trump’s team submitted their appeal on February 26, 2024, and the court heard oral arguments that September.
“It is obvious that they are dragging their heels,” said Joe Tacopina, a veteran trial attorney who has represented Trump in other legal matters.
Tacopina labeled the year-plus delay “insane and obviously another ‘special treatment’ for Trump.”
He added, “After oral argument or submission, the court usually issues a decision within a couple of months, though it can sometimes take longer depending on the complexity of the case or the court’s docket.”
A spokesperson for the Clerk’s Office of the Appellate Division declined to comment, saying, “We don’t discuss pending matters before the court.”
As New York’s governor since 2021, Hochul holds significant sway over judicial appointments, thanks to a system that doesn’t require Senate confirmation for Appellate Division judges — a level of control uncommon among other governors.
Although none of the five justices handling Trump’s appeal — Dianne Renwick, David Friedman, Peter Moulton, John Higgitt, and Llinét Rosado — were appointed by Hochul, she did promote Renwick to presiding justice last year. The other judges also rely on her for reappointment every five years.
Letitia James, the state attorney general who brought the case against Trump and his family business, has taunted him online about the daily interest piling onto his judgment — now over $480 million, with $112,000 accruing each day.
Trump’s attorneys were initially encouraged following the September 26, 2024 hearing, where judges expressed doubts about the attorney general’s legal arguments.
During the hearing, Judge Friedman asked if the AG had ever used this law before “to upset a private business transaction,” emphasizing that Trump’s dealings were with “some of the most sophisticated actors in business,” like Deutsche Bank.
He also observed that there were no financial losses involved: nobody “lost any money.”
Judge Moulton added that “the immense penalty in this case is troubling” and observed “the parties left these transactions happy.”
He also criticized the potential overreach of the AG’s approach, questioning whether the law had undergone “mission creep,” becoming something it was never intended to be.
Judge Higgitt suggested that the attorney general may be “going into an area where she doesn’t have jurisdiction.”
Despite those comments, the court has remained silent since, with no ruling issued seven months later.
Even if Trump prevails, he won’t recover the hefty expense of securing a bond for the appeal. Initially set at $464 million, it was reduced in March to $175 million, but his legal team estimates the cost to be in the millions — recoverable only by suing the state.
Trump’s lawyers say the case is politically motivated, arguing that James has turned the state’s legal system into a tool for targeting a political rival, and that Judge Engoron was blatantly biased throughout the proceedings.
James, who ran for office in 2018 on a platform that included opposing Trump, referred to him as an “illegitimate president” and “embarrassment” during her campaign.
Trump, in turn, has labeled her a “racist prosecutor” conducting a “witch hunt” against him.
Shortly after Trump took office, he revoked James’s security clearance, preventing her from entering federal buildings such as courthouses, FBI offices, or U.S. attorney facilities.
In a twist of fate, James was referred this week to the Department of Justice by the Federal Housing Finance Agency for possible criminal prosecution over allegations she falsified mortgage documents to get better loan terms on properties in Virginia and New York.
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