Former President Donald Trump is facing significant hurdles in securing a $454 million appeal bond in the New York civil business fraud case, according to a recent court filing by his attorneys. In the filing submitted to the Appellate Division of Manhattan Supreme Court, Trump's lawyers argued that it is "impossible" for them to obtain a complete appeal bond, which would effectively require "cash reserves approaching $1 billion."
The attorneys revealed that they have approached approximately 30 surety companies through four separate brokers and have spent "countless hours negotiating with one of the largest insurance companies in the world." Despite these efforts, Trump's legal team stated that "Defendants' ongoing diligent efforts have proven that a bond in the judgment's full amount is 'a practical impossibility,'" quoting an affidavit in the filing.
In February, Manhattan Supreme Court Judge Arthur Engoron ordered Trump and his co-defendants, including his two adult sons and his company, to pay a total of $464 million in damages and interest for violating a New York anti-fraud statute. Trump's share of the judgment amounts to $454 million, with post-judgment interest accruing at a rate of nearly $112,000 per day.
The case, brought by New York Attorney General Letitia James, accused Trump and his associates of falsely inflating his asset values for years to boost his net worth and secure financial perks. The defendants had previously offered to post a $100 million bond, less than one-fourth of the total judgment, to pause James from collecting the penalties during the appeal process. However, Appeals court Judge Anil Singh rejected this proposal while allowing the defendants to continue doing business in New York and lifting Engoron's three-year ban on Trump seeking loans in the state.
Trump's lawyers have requested that the appellate division schedule oral arguments on the issue if it considers denying the requested stay of the judgment. Furthermore, if the division declines to grant the stay, the lawyers have asked for permission to file an appeal with the Court of Appeals, the highest state court in New York.
Gary Giuletti, an insurance broker who testified for Trump during the civil fraud trial, signed an affidavit stating that securing a bond in the full amount "is a practical impossibility." Trump's lawyers emphasized that potential underwriters are seeking cash to back the bond, not properties, further complicating the process.
The challenges faced by Trump in securing the appeal bond highlight the significant financial implications of the civil fraud case. The former president's legal team has argued that the value of Trump's properties far exceeds the judgment, and they are seeking to delay posting the bond until the appeal process is complete.
This development comes on the heels of Trump obtaining a $91.6 million bond from the Chubb insurance company to secure a civil defamation judgment against him in favor of the writer E. Jean Carroll while he appeals that judgment. The stark difference in the bond amounts and the difficulties in securing the appeal bond in the civil fraud case underscore the complexity and magnitude of the legal battles Trump is currently facing.
As the deadline for posting the bond approaches, Trump's attorneys are working to find a solution that would allow them to proceed with the appeal without having to secure the full $464 million. The outcome of this legal battle will have significant implications for the former president's financial future and his ability to continue conducting business in New York.
