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Trump cannot line up full bond in New York fraud case, offers to post $100 million

Trump cannot line up full bond in New York fraud case, offers to post $100 million
Republican presidential candidate and former President Donald Trump holds a pair of his new line of signature shoes after taking the stage at Sneaker Con at the Philadelphia Convention Center on February 17, 2024 in Philadelphia, Pennsylvania. Sneaker Con was founded in 2009 and is one of the oldest events celebrating sneakers, streetwear and urban culture. Trump addressed the event one day after a judge ordered the former president to pay $354 million in his New York civil fraud trial. (Photo by Chip Somodevilla/Getty Images)

NEW YORK, Feb 28 (Reuters) - Donald Trump is unable to post a full bond while he appeals a $454.2 million judgment that a judge imposed in New York state's civil fraud case against him, and wants instead to secure a $100 million bond, his lawyers said on Wednesday.

By Jonathan Stempel

Trump is appealing a Feb. 16 decision by Justice Arthur Engoron of the state court in Manhattan, which includes a three-year ban from serving in a top role at any New York company, or seeking loans from banks registered in the state.

Letitia James, the state’s attorney general, sued Trump, the Trump Organization and other defendants in 2022, accusing them of overstating the value of Trump’s properties to inflate his net worth and obtain better loan and insurance terms.

In a filing with the Appellate Division, a mid-level appeals court, Trump’s lawyers asked to temporarily stay the judgment during his appeal, saying he would suffer “irreparable harm” if James were free to sell his real estate assets to raise capital.

The lawyers also said the “exorbitant and punitive amount of the judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond.”

They said a $100 million bond, together with Trump’s “vast” real estate holdings and ongoing oversight by the court-designated monitor for the Trump Organization, would be more than sufficient to secure the judgment.

In a separate filing, James opposed a stay, calling it “especially inappropriate” given the defendants “all but concede” that Trump does not have enough liquid assets to satisfy the judgment.

“These are precisely the circumstances for which a full bond or deposit is necessary, where defendants’ approach would leave (the attorney general’s office) with substantial shortfalls once this court affirms the judgment,” she wrote.

 

RISK OF EVASION

James also said there was “substantial risk” that Trump might not pay up, or might move assets beyond her reach, if he lost his appeal.

She cited the defendants’ having “surreptitiously” concealed from the monitor a $40 million transfer, and Trump’s recent announcement that some of his businesses had moved to Florida.

Trump has estimated his net worth in the billions of dollars, but much of that is in real estate, not cash.

Engoron imposed a $354.9 million penalty against Trump, plus daily interest that began to accrue in 2019.

The payout had grown to $454.2 million with interest by Feb. 22, and additional interest is tacked on each day.

A bonding company would be on the hook for any payout if Trump lost his appeal and proved unable to pay.

It might have difficulty collecting if Trump, the frontrunner for the Republican presidential nomination, reclaimed the White House from Democrat Joe Biden.

Trump is also seeking to avoid posting a full bond during an expected appeal of last month’s $83.3 million defamation verdict in favor of the writer E. Jean Carroll.

He has asked the judge in that case to let him appeal without posting any security, or alternatively by posting at most a $24.5 million unsecured bond.

(Reporting by Jonathan Stempel in New York; Editing by Jonathan Oatis and Daniel Wallis)

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Comments - Please in order to comment.

  • Manie Mulder says:

    The mad hatter does not want to come to the (tea) party.

  • Petrus Vermaak says:

    I really admired Trump’s focus on job creation and economic growth. It felt like things were moving in the right direction. With Biden, it’s the opposite. He’s destroying the economy and has no strategy.

    • George 007 says:

      Actually, the US economy is booming right now, and the stock market is at an all-time high and unemployment around 3 to 4%, basically full employment. How is President Biden “destroying the economy?” What is your definition of a “strategy,” and what kind of strategy are you looking for? Please be specific.

      I need to correct you on Trump’s economic record too. Despite saying during the 2016 campaign he would eliminate the national debt in eight years, Trump as president approved large increases in government spending, as well as the 2017 tax cut.

      As a result, the federal budget deficit increased by almost 50% to nearly $1 trillion (~$1.13 trillion in 2022) in 2019. Under Trump, the U.S. national debt increased by 39%, reaching $27.75 trillion by the end of his term; the U.S. debt-to-GDP ratio also hit a post-World War II high. Analysis has suggested that the economy would have grown without any intervention by the Trump administration.

  • Palesa Tyobeka says:

    Trump has shown the American public that he is not capable of ethical leadership or honesty and integrity for that matter. But then – to each their own.

  • Petrus Vermaak says:

    Absolute rubbish.

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