Trump's NY Lawsuit
Trump Unable to Secure $464M Appeal Bond, Faces Asset Seizure
In a significant development in the ongoing legal battles of former President Donald Trump, his attorneys have stated that securing a $464 million appeal bond is a "practical impossibility." This bond is crucial for Trump to halt the collection on a civil fraud judgment against him as he attempts to appeal the decision.
Trump's legal team has approached over 30 surety companies through four separate brokers in an effort to secure the bond. However, they have been unsuccessful, citing the unprecedented magnitude of the bond and the reluctance of surety companies to underwrite such a large amount for an individual or privately held business.
The judgment, which amounts to $464 million including interest, was ordered by a New York judge last month after Trump was found liable in a civil fraud case. The case, brought by New York Attorney General Letitia James, accused Trump of a scheme to inflate his wealth in financial statements to secure more favorable terms from banks and insurers.
The inability to post the bond means that Trump faces the imminent risk of having some of his properties seized to ensure James can collect on the court-ordered damages. Trump's attorneys have argued that enforcing the bond requirement as a condition of appeal would inflict irreparable injury on the defendants.
The former president's legal team has also highlighted the challenges of securing a bond that would typically require collateral of approximately 120% of the judgment amount, equating to over $557 million. Additionally, surety companies are likely to demand a two-year advance on a 2% annual bond premium, which would necessitate an upfront cost of over $18 million.
Trump's financial difficulties are compounded by the fact that he recently posted a separate $91.6 million bond to prevent writer E. Jean Carroll from enforcing a defamation verdict while he appeals that case.
The deadline for Trump to post the bond is fast approaching, with New York Attorney General Letitia James' office poised to begin asset seizure unless an appellate court agrees to halt the judgment or allow Trump to post a bond for a smaller amount. Trump's legal team has offered to post a $100 million bond, far lower than the required amount, but this proposal has been opposed by James's office.
As the situation unfolds, Trump's financial stability and the future of his real estate empire hang in the balance, with significant legal and financial repercussions at stake.
