USA – NEW YORK Trends and Developments Contributed by: Jilan J. Kamal, Michelle Ben-David and Laszlo Herwitz, Herbert Smith Freehills Kramer
Conclusion 2025 has been a transitional year for New York prosecutors, state and federal alike. New policies announced by the Trump administration have and will continue to re-focus the lens through which federal prosecutors prioritise and pursue white-collar enforce - ment, particularly in the areas of sanctions evasion, foreign corruption, money laundering, and fraud on federal programmes. This new federal emphasis on “economic security” as “national security” appears to be accompanied by decreased attention to consumer protection, cryptocurrency, and public corruption, are - as that the New York Attorney General’s Office and the Manhattan DA have signalled they will target. While it may take time for state and federal prosecutors in New York to adjust their dockets to meet these new priorities, the expectation is that robust white-collar enforcement will continue, as it has long been a staple of federal and state investigations and prosecutions in New York.
Justice Alito noted at oral arguments, a desire not to “federaliz[e] white-collar prosecutions.” Looking for - ward, the decision in Kousisis may serve to open the door to more aggressive fraud prosecutions under a fraudulent inducement theory as well as civil claims brought under the Racketeer Influenced and Corrupt Organizations Act (RICO) and the FCA. At the state level, conversely, New York’s highest-pro - file civil fraud case is likely headed for further argu - ment. In August 2025, a divided panel of the New York State Appellate Division overturned the approximately USD500 million penalty obtained by New York Attor - ney General Letitia James against President Donald Trump and his sons in connection with their efforts to inflate President Trump’s net worth to obtain bet - ter loan terms for The Trump Organization’s business ventures. The five-judge panel dismissed the fine, while leaving the finding of liability in place. James pledged to appeal, setting up a likely showdown at the New York Court of Appeals over the judgment, although proceedings could potentially be deferred until after President Trump leaves office.
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