Former president Donald Trump won’t be able to post the full bond required by the ruling in his civil fraud trial, opening himself up to a potential asset seizure by the New York Attorney General.
Trump’s legal team informed an appellate court of his inability to obtain a $464 million bond, Politico reported. Trump’s lawyers said it was a “practical impossibility” to secure such a high bond amount, according to a court filing, adding that they approached 30 different surety companies through four separate brokers.
Trump still has time to secure the full bond amount, though his team’s filing suggests that further efforts will be in vain, especially since bonding companies aren’t interested in taking real estate as collateral. The deadline for Trump to put up the bond is March 25.
An appeals court judge rejected his request to prevent the enforcement of the full judgment, but the issue is going before a full panel of the New York appeals court.
The appeals court may also fulfill Trump’s request of posting a smaller bond. Last month, his team offered a $100 million bond, which New York AG Letitia James’ office firmly rejected.
Trump’s legal team said a fire sale of the former president’s real estate holdings to post the bond would cause “textbook irreparable injury,” but he may be in danger of losing those without the full bond anyways.
Once next Monday’s deadline passes, James can begin pursuing Trump’s assets as a means to collect the judgment against him. James previously said she would be willing to go after Trump’s real estate assets, including 40 Wall Street.
The bond stumbling block is the latest drama involving Trump’s real estate empire.
During his civil fraud trial, the attorney general’s office argued that the Trump Organization claimed high valuations for some properties to borrow more money against them, but claimed low valuations when it served the company better. Judge Arthur Engoron’s recent ruling in a bench trial was to determine damages, as he already ruled the organization was liable for fraud.
Read more
National
NY attorney general accuses Trump of inflating property values by $2.2B
Commercial
New York
Judge rules Trump Organization violated NY state fraud law
Commercial
New York
Trump appeal: The Donald seeks to pay quarter of $454M judgment