Former President Donald Trump faces another setback in his legal battles. He has been denied a $464 million appeal bond in a New York civil fraud case.
The decision, outlined in a Manhattan Supreme Court filing, highlights the challenges Trump and his legal team encounter in overturning court rulings against them (via CNBC).
(Photo : Photo by KAMIL KRZACZYNSKI/AFP via Getty Images)
Trump Unable to Secure $464M Appeal Bond in New York Fraud Case
The case, filed by New York Attorney General Letitia James, alleges that Trump, the Trump Organization, and other defendants engaged in fraudulent practices to inflate asset values.
This, in turn, bolstered Trump's net worth and secured financial benefits. Manhattan Supreme Court Judge Arthur Engoron sided with James in February, ordering Trump and his co-defendants to pay a staggering $464 million in damages and interest.
Engoron ruled Trump, Donald Trump, Jr., Eric Trump, and his former executives responsible for "persistent and repeated fraud," "falsifying business records," "issuing false financial statements," "conspiracy to falsify false financial statements," "insurance fraud," and "conspiracy to commit insurance fraud."
Despite Trump's claims of having substantial cash reserves, his attorneys have struggled to secure the necessary funds for an appeal bond. They assert that obtaining such a bond, which requires reserves nearing $1 billion, has been "impossible" given the circumstances.
Trump's team has approached numerous surety companies and spent considerable time negotiating with major insurers, all to no avail.
Trump's Legal Battle Escalates
Gary Giulietti, president of the Northeast division of the Lockton Companies, emphasized the rarity of a bond of this magnitude. He noted that only a handful of companies are approved to underwrite such bonds, with stringent requirements that include cash or cash equivalents as collateral.
The practical challenges of securing such a bond have complicated Trump's legal strategy and raised questions about his ability to effectively pursue appeals.
In response to the denial of the appeal bond, Trump's attorneys have requested a stay of the judgment, arguing that it interferes with their right to appeal and threatens the court's appellate jurisdiction.
They contend that waiving the bond requirement would not harm the Attorney General, as the case involves no restitution for victims and the defendants' real estate holdings offer sufficient protection.
This latest development comes amid a broader legal battle for Trump, who is also contesting defamation judgments in favor of writer E. Jean Carroll. Trump's legal woes extend beyond the courtroom, impacting his political aspirations as he positions himself for a potential run in the 2024 presidential election. The outcome of these legal challenges could have significant implications for Trump's personal and professional future.
In the meantime, New York Attorney General Letitia James has reiterated her commitment to holding Trump and his associates accountable for their alleged fraudulent actions. With legal proceedings ongoing, the ultimate resolution of this case remains uncertain, leaving Trump's future in the balance.
Join the Conversation