Former US President Donald Trump is in a difficult position as he attempts to post a $454 million bond in a civil fraud prosecution. Mr. Trump’s lawyers told a New York appeals court that the former US President is unable to locate an insurance provider willing to insure his bail to cover the large judgment against him in the New York attorney general’s civil fraud lawsuit. According to CNN, Trump’s counsel said he had approached 30 underwriters to back the bond, which is due at the end of the month.
“The amount of the judgment, with interest, exceeds $464 million, and very few bonding companies will consider a bond of anything approaching that magnitude,” the attorneys for Mr. Trump said. (Trump himself was ordered to pay $454 million; the $464 million includes the disgorgement for his adult sons Don Jr. and Eric.)
Gary Giulietti, an insurance broker who testified on Trump’s side during the civil fraud trial, wrote an affidavit stating that securing bail for the entire sum “is practically impossible.” According to Trump’s legal team, potential underwriters want cash rather than properties to back up the bond. Trump’s lawyers have requested the appeals court to postpone posting the bail until his appeal of the case is heard, arguing that the worth of Mr Trump’s properties considerably outweighs the judgment, CNN reports. If the appeals court rules against him, Trump urged the court to defer his posting of the bond until his appeal to New York’s top court is decided.
Trump said Monday that he believed it was “practically impossible” for him to post the bond
Trump must post the bail as part of his appeal against a civil court decision. The bond ensures that he will have the cash to pay the penalty if he loses the appeal. It is customary legal procedure to keep appellants from avoiding financial penalties. If Donald Trump fails to post the required $454 million bond by the deadline, New York Attorney General Letitia James will have the ability to seize Mr. Trump’s properties and other assets to guarantee the secured judgment amount. According to Reuters, if Trump loses his appeal and is unable to pay, a bonding business will be held responsible for any payout.
Trump said Monday that he believed it was “practically impossible” for him to post the bond. In a Truth Social post, he stated that the bond’s size is “unconstitutional, un-American, unprecedented, and practically impossible for any company, including one as successful as mine.” The bonding companies have never heard of a bond of this scale before, and they cannot post such a bond, even if they wanted to.” Trump, 77, has denied wrongdoing and promised to challenge the decision, which threatens his family’s real estate enterprise. He must post cash or a bond within 30 days after Engoron’s formal filing of the order on Feb. 23, or the state will seize part of the Trump Organization’s assets to ensure James can collect. Thirty days end on March 25.
This month, Trump posted a $91.6 million bond to cover an $83.3 million defamation decision for writer E. Jean Carroll while he appealed, in a lawsuit stemming from his dubbing her a liar after she accused him of raping her decades ago. He has denied wrongdoing. He has also pleaded not guilty in four felony counts stemming from his efforts to overturn his 2020 loss to Biden, his management of government papers after leaving office in 2021, and hush money paid to a porn star before his 2016 election victory to claim she had a sexual encounter with him.