Former President Trump has posted a $175 million bond in his New York civil fraud case, preventing the state from seizing his assets while he appeals. A New York appellate court had given him 10 days to put up the money after agreeing to lower the amount required to stop enforcement. If Trump wins his appeal, he will not have to pay the state anything and will get back the money he posted. The New York Attorney General, Letitia James, a Democrat, brought the lawsuit against Trump on the state’s behalf. The bond Trump is posting now is a guarantee of payment if the judgment is upheld, and if so, he will have to pay the state the full amount, plus interest.
The case revolves around allegations that Trump lied about his wealth as he built his real estate empire, leading to accusations of fraud. Trump denies any wrongdoing, arguing that the financial statements provided were accurate and included disclaimers. The appellate court has scheduled a hearing for September to hear arguments regarding the case. Filing an appeal typically does not halt enforcement of a judgment, but a bond guaranteeing payment can provide a temporary pause. In Trump’s case, the court lowered the required bond amount after his lawyers claimed it was not feasible to find an underwriter for the original sum of $454 million, plus interest.
Trump’s legal team had difficulties finding bonding companies willing to accept a mix of cash and real estate as collateral for the bond. Most companies required only cash, stocks, or other liquid assets to secure the bond, and they also typically mandated collateral covering 120% of the amount owed. Despite Trump’s claim to have nearly half a billion dollars in cash, along with other assets, he faced challenges in meeting the bond requirements. His son, Eric Trump, expressed confidence in vindicating their rights through the appeal process.
In addition to the New York case, Trump has also posted a bond and cash totaling over $97 million to cover legal debts stemming from allegations of sexual assault and defamation brought by writer E. Jean Carroll. Juries found Trump guilty in these federal civil trials, but he continues to deny the allegations. The legal battles have taken a substantial toll on Trump’s cash reserves. The former president’s financial challenges and ongoing legal disputes have implications for his political ambitions, particularly as he faces a potential run for the presidency. Ultimately, the outcome of these legal battles could significantly impact Trump’s future trajectory.
