In a crucial victory for former President Donald J. Trump, a New York appeals court has accepted a bond of $175 million in his civil fraud case, significantly lower than the $454 million judgment imposed by a trial judge. This decision potentially staves off a financial disaster for Mr. Trump, as failing to obtain the full bond could have resulted in losing control of his bank accounts and properties. He now has 10 days to secure the bond, which would prevent the New York attorney general’s office from collecting the judgment while he appeals the case.
Mr. Trump’s lawyers had sought either a smaller bond or a pause in the bond requirement, arguing that the trial judge’s penalty was disproportionate and unconstitutional. Justice Arthur F. Engoron had found Mr. Trump liable for inflating his net worth to secure loans and other benefits, imposing significant financial penalties and restrictions on him and his family business. While the appeals court accepted the smaller bond, most of the restrictions imposed by Justice Engoron were paused, except for the appointment of an independent monitor.
The former president would have needed collateral of about $557 million to secure the full bond, including cash and other assets that could be quickly sold. However, much of Mr. Trump’s wealth is tied up in real estate, which bond companies are hesitant to accept as collateral. Despite approaching more than 30 bond companies, he had been unable to secure the full bond amount, citing it as a “practical impossibility.” The acceptance of the smaller bond comes as a relief to Mr. Trump, as it provides him with more time to meet the financial requirements.
The larger bond was tied to the judgment imposed by Justice Engoron, who found that Mr. Trump had conspired to manipulate his net worth for financial gain, resulting in calculations that included interest payments saved through misleading lenders and profits from property sales. The former president was also subjected to restrictions like being barred from running any New York company for three years and being unable to obtain loans from New York banks, with similar restrictions for his adult sons. The appeal process for this case could take months or longer to resolve.
Securing a smaller bond in the fraud case is a significant development for Mr. Trump, who has faced mounting legal challenges since leaving office. Having recently posted a bond in a defamation case, he was able to provide enough collateral for the $175 million bond in the case brought by Attorney General Letitia James. The appeals court’s decision has allowed the former president to avoid immediate financial upheaval and focus on meeting the requirements within the 10-day deadline. With the possibility of losing control over his assets alleviated, Mr. Trump can now prepare to appeal the fraud case while navigating ongoing legal battles.
