UNITED STATES NEWS

Trump’s lawyers say it is impossible for him to post bond covering $454 million civil fraud judgment

Mar 18, 2024, 7:30 PM

Republican caucuses live updates...

(AP Photo/Andrew Harnik)

(AP Photo/Andrew Harnik)

NEW YORK (AP) — Donald Trump’s lawyers told a New York appellate court Monday that it’s impossible for him to post a bond covering the full amount of a $454 million civil fraud judgment while he appeals, suggesting the former president’s legal losses have put him in a serious cash crunch.

Trump’s lawyers wrote in a court filing that “obtaining an appeal bond in the full amount” of the judgment “is not possible under the circumstances presented.” Trump claimed last year that he has “fairly substantially over $400 million in cash,” but back-to-back courtroom defeats have pushed his legal debt north of a half-billion dollars.

Citing rejections from more than 30 bond underwriters, Trump’s lawyers asked the state’s intermediate appeals court to reverse a prior ruling requiring that he post a bond covering the full amount in order to halt enforcement while he appeals the judgment in New York Attorney General Letitia James’ lawsuit.

Trump’s financial constraints are being laid bare as he appeals Judge Arthur Engoron’s Feb. 16 ruling that he and his co-defendants schemed for years to deceive banks and insurers by inflating his wealth on financial statements used to secure loans and make deals.

If the appeals court does not intervene, James can seek to enforce the judgment starting March 25. James, a Democrat, has said she will seek to seize some of Trump’s assets if he is unable to pay.

With interest, Trump owes the state $456.8 million. That amount is increasing nearly $112,000 each day. In all, he and co-defendants, including his company, sons Eric and Donald Trump Jr. and other executives, owe $467.3 million. To obtain a bond, they would be required to post collateral covering 120% of the judgment, or about $557.5 million, Trump’s lawyers said.

Trump maintains that he is worth several billion dollars, but much of his wealth is tied up in his skyscrapers, golf courses and other properties. Few underwriters were willing to issue such a large bond and none would accept Trump’s real estate assets as collateral, instead requiring cash or cash equivalents, such as stocks or bonds, his lawyers said.

Trump’s lawyers said freeing up cash by offloading some of Trump’s properties in a “fire sale” would be impractical because such cut-rate deals would result in massive, irrecoverable losses.

Not mentioned in Trump’s court filings Monday was the presumptive Republican presidential nominee’s potential financial windfall from a looming deal to put his social media company, Trump Media & Technology Group, on the stock market under the ticker symbol DJT.

A shareholder meeting is scheduled for Friday. If the deal is approved, Trump would own at least 58% of shares in the company, which runs his Truth Social platform. Depending on share price, that could be worth several billion dollars.

Trump is asking a full panel of the intermediate appeals court, the Appellate Division of the state’s trial court, to stay the Engoron judgment while he appeals. His lawyers previously proposed a $100 million bond, but Appellate Division Judge Anil C. Singh rejected that after an emergency hearing on Feb. 28. A stay is a legal mechanism pausing collection of a judgment during an appeal.

In a court filing last week, Senior Assistant Solicitor General Dennis Fan urged the full appellate panel to reject what he dubbed the defense’s “trust us” argument, contending that without a bond to secure the judgment Trump may attempt to evade enforcement at a later date and force the state to “expend substantial public resources” to collect the money owed.

A full bond is necessary, Fan wrote, in part because Trump’s lawyers “have never demonstrated that Mr. Trump’s liquid assets — which may fluctuate over time — will be enough to satisfy the full amount of this judgment following appeal.”

Trump’s lawyers asked the Appellate Division panel to consider oral arguments on its request, and preemptively sought permission to appeal a losing result to the state’s highest court, the Court of Appeals.

Singh did grant some of Trump’s requests, including pausing a three-year ban on him seeking loans from New York banks. In their court filing Monday, Trump’s lawyers did not address whether they have sought a bank loan to cover the cost of the judgment or obtain cash for use as bond collateral.

Trump appealed on Feb. 26, a few days after Engoron’s judgment was made official. His lawyers have asked the Appellate Division to decide whether Engoron “committed errors of law and/or fact” and whether he abused his discretion or “acted in excess” of his jurisdiction.

Trump wasn’t required to pay his penalty or post a bond in order to appeal, and filing the appeal did not automatically halt enforcement of the judgment. Trump would receive an automatic stay if he were to put up money, assets or an appeal bond covering what he owes.

Gary Giulietti, an insurance broker friend enlisted by Trump to help obtain an appeal bond, wrote in an affidavit Monday: “A bond of this size is rarely, if ever, seen. In the unusual circumstance that a bond of this size is issued, it is provided to the largest public companies in the world, not to individuals or privately held businesses.”

Giulietti, who acts as an insurance broker for Trump’s company, testified at the civil fraud trial as an expert witness called by Trump’s lawyers. In his ruling, Engoron observed that some of Giulietti’s testimony was contradicted by other witnesses, including a different defense expert. He noted that Giulietti’s company collected $1.2 million in commissions on its Trump accounts in 2022.

In all, Trump has more than $543 million in personal legal liabilities from three civil court judgments in the past year. Bonding requirements could add at least $100 million to that total.

In January, a jury ordered Trump to pay $83.3 million to writer E. Jean Carroll for defaming her after she accused him in 2019 of sexually assaulting her in a Manhattan department store in the 1990s. Earlier this month, after his lawyers made similar arguments that he be excused from posting a bond, Trump did secure a $91.6 million bond to cover 110% of the Carroll judgment while he appeals.

Last year, a jury ordered Trump to pay Carroll $5 million in a related trial. In that case, rather than post a bond, Trump put more than $5.5 million in cash in an escrow account while he appeals.

United States News

Associated Press

Stock market today: World shares are mixed after a tech-led retreat on Wall Street

World shares were mixed on Thursday after sinking technology stocks sent Wall Street lower again. Germany’s DAX slipped 0.1% to 17,756.81 while the CAC 40 in Paris added 0.4% to 8,010.04. In London, the FTSE 100 edged 0.1% higher, to 7,857.46. The future for the S&P 500 was up 0.3% while that for the Dow […]

2 hours ago

Associated Press

Takeaways from this week’s reports on the deadly 2023 Maui fire that destroyed Lahaina

HONOLULU (AP) — More than half a year after the deadliest U.S. wildfire in more than a century burned through a historic Maui town, officials are still trying to determine exactly what went wrong and how to prevent similar catastrophes in the future. But two reports released this week are filling in some of the […]

5 hours ago

A anti-abortion supporter stands outside the House chamber, Wednesday, April 17, 2024, at the Capit...

Associated Press

Democrats clear path to bring proposed repeal of Arizona’s near-total abortion ban to a vote

Democrats in the Arizona Senate cleared a path to bring a proposed repeal of the state’s near-total ban on abortions to a vote.

8 hours ago

Associated Press

Oklahoma man arrested after authorities say he threw a pipe bomb at Satanic Temple in Massachusetts

BOSTON (AP) — An Oklahoma man was arrested Wednesday after authorities accused him of throwing a pipe bomb at the Massachusetts headquarters of a group called The Satanic Temple. The Salem-based group says on its website that it campaigns for secularism and individual liberties, and that its members don’t actually worship Satan. Sean Patrick Palmer, […]

11 hours ago

Associated Press

Ellen Ash Peters, first female chief justice of Connecticut Supreme Court, dies at 94

HARTFORD, Conn. (AP) — Ellen Ash Peters, who was the first woman to serve as Connecticut’s chief justice and wrote the majority opinion in the state Supreme Court’s landmark school desegregation ruling in 1996, has died. She was 94. Peters, who also was the first female faculty member at Yale Law School, passed away Tuesday, […]

13 hours ago

Associated Press

Vermont farms are still recovering from flooding as they enter the growing season

BERLIN, Vt. (AP) — Hundreds of Vermont farms are still recovering from last July’s catastrophic flooding and other extreme weather as they head into this year’s growing season. Dog River Farm, in Berlin, Vermont, lost nearly all its produce crops in the July flooding. The farm removed truckloads of river silt and sand from the […]

13 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

Trump’s lawyers say it is impossible for him to post bond covering $454 million civil fraud judgment