(CTN News) – During his appeal of a $454.2 million judgment imposed in a civil fraud case against him, Donald Trump cannot post a full bond. Instead, he wants a $100 million bond, his lawyers said.
The state court in Manhattan ruled on Feb. 16 that Trump cannot serve in a top position at any New York company. He cannot also seek loans from New York banks for three years. Trump appeals the ruling.
Letitia James, the state’s attorney general, sued Donald Trump, the Trump Organization, and other defendants in 2022. She accused them of overstating the value of Trump’s properties to increase his net worth.
Trump’s lawyers asked the Appellate Division, a mid-level appeals court, to temporarily stay the judgment during his appeal, claiming he would suffer “irreparable harm” if James could sell his real estate assets.
Also, the lawyers stated that a complete bond was impossible to obtain because the judgment amount was “exorbitant and punitive” and lending transactions were prohibited. In their view, a $100 million bond would be sufficient to secure the judgment along with Trump’s extensive real estate holdings and ongoing court oversight.
James opposed a stay, calling it “especially inappropriate” given that the defendants had “all but conceded.”
Donald Trump lacked liquid assets to satisfy the judgment.
A full bond or deposit would be required in these circumstances, where defendants’ approach would leave (the attorney general’s office) with substantial shortfalls once the judgment is upheld, she wrote.
The risk of evaporation
Moreover, James said Donald Trump may not pay up or move assets beyond her reach if he loses his appeal.
Among other things, she pointed out the defendants’ “surreptitious” concealment of a $40 million transfer, and Trump’s recent announcement that some of his businesses had moved to Florida. Trump estimates his net worth at billions of dollars, but most of that comes from real estate, not cash.
Engoron imposed a $354.9 million penalty on Donald Trump, plus daily interest starting in 2019. With interest, the payout reached $454.2 million by Feb. 22, and additional interest is added every day. A bonding company would pay any payout if Trump lost his appeal.
If Trump, the frontrunner for the Republican nomination, wins the election and reclaims the White House from Joe Biden, it might have difficulty collecting.
Additionally, Donald Trump is seeking to avoid posting a full bond during a scheduled appeal of a defamation verdict of $83.3 million in favor of writer E. E. Carroll.
It is his request that the judge in that case allow him to appeal without posting any security, or to post at most a $24.5 million unsecured bond.
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