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Jimmy Williams
Former President Donald Trump has faced challenges in securing a bond to cover the $464 million civil fraud judgment against him and his co-defendants, according to a court filing on Monday.
Trump and his company must post a bond for the full amount by next week to halt New York Attorney General Letitia James from collecting while he appeals. Despite efforts to obtain a bond, including approaching about 30 surety companies, Trump’s lawyers stated that obtaining a bond in the judgment’s full amount is practically impossible.
The filing highlighted that bond companies typically require cash or cash equivalents as collateral, totaling around $557 million with a bond premium of approximately $18 million, which would not be recoverable even if Trump wins his appeal.
While Trump’s team argued that the attorney general’s judgment is unjust and unconstitutional, they also emphasized that Trump’s real estate holdings, including properties like 40 Wall Street and Mar-a-Lago, exceed the judgment’s amount, making it effectively secured during the appeal process.
Trump’s lawyers contended that the $464 million penalty is grossly disproportional and asserted that there were no victims, damages, or financial losses. They previously requested a reduction of the bond amount to $100 million but argued in the latest filing that Trump should not have to post any bond at all.
The 30-day automatic stay of the judgment is set to expire on March 25, allowing James to start seizing Trump’s assets unless the appeals court intervenes. If the state Appellate Division denies Trump’s request, he seeks a temporary stay to appeal to the state’s highest court, the Court of Appeals.
The judgment against Trump stemmed from findings that he and his company committed fraud by inflating personal financial statements to secure bank loans and insurance policies. Trump maintained his innocence, insisting that his properties were undervalued, while James’ office revealed significant overvaluations of Trump’s assets.
The filing on Monday, seeking to freeze the entire $464 million, was filed on behalf of Trump and his co-defendants, including his sons Don Jr. and Eric, who have been overseeing the Trump Organization. In a separate federal case, Trump posted a $91 million bond to secure a defamation judgment against him while he appeals that verdict.
