Donald Trump’s Legal Battle Continues

Donald Trump’s attempts to obtain a bond to cover a $454 million judgment in a New York civil fraud case have been thwarted by 30 surety companies, his legal team revealed on Monday. This development brings him closer to the looming threat of having his properties seized.

Donald Trump facing Legal Challenges

Facing a judgment from Justice Arthur Engoron on February 16 for misrepresenting property values to deceive lenders and insurers, the former president must now either pay the sum from his own funds or secure a bond to prevent the state from seizing his assets while he appeals the decision.

Trump, along with two of his adult children and other executives from the Trump Organization, has made unsuccessful attempts to secure bonds from the 30 companies through four different brokers, as reported by his legal team. The other defendants in the case collectively face judgments amounting to $10 million.

If Trump’s appeal is unsuccessful and he is unable to pay, any payout would be the responsibility of the bonding company.

This case, initiated by New York State Attorney General Letitia James in September 2022, adds to the array of legal challenges the former businessman and current Republican candidate faces as he seeks a rematch with Democratic President Joe Biden in the November 5 election.

Trump, aged 77, has consistently denied any wrongdoing and has expressed his intention to appeal the judgment, which poses a threat to his family’s real estate business.

He is required to either provide cash or post a bond within 30 days of Justice Engoron’s formal entry of the order on February 23. Failure to comply by March 25 could result in the state seizing assets belonging to the Trump Organization to ensure payment to Attorney General James.

In a recent court filing, Trump’s legal team requested a mid-level state appeals court, the Appellate Division, to postpone the enforcement of the judgment, arguing that the amount awarded was excessive. The timing of the court’s decision on this matter remains uncertain.

The legal team proposed that Trump be permitted to post a $100 million bond as he proceeds with his appeal against the judgment.

In a court filing, Gary Giulietti, an executive from the Lockton Companies, an insurance brokerage assisting Trump in obtaining the bond, stated that it would not be feasible to secure a bond for the entire $464 million under the current conditions. Giulietti explained that many sureties were unwilling to issue bonds exceeding $100 million and preferred cash or securities over real estate as collateral.

Trump’s legal team argued that imposing an unrealistic bond requirement as a condition for appeal would cause significant and irreparable harm to the defendants.

Before the commencement of a three-month trial without a jury in October, Engoron had determined that Trump had committed fraud by inflating the values of properties such as his Mar-a-Lago estate in Florida, his penthouse apartment in Trump Tower in Manhattan, and various office buildings and golf courses.

While the trial primarily focused on determining damages, Engoron’s ruling on February 16 stated that Trump and the other defendants showed an unwillingness to acknowledge their wrongdoing.

Earlier this month, Trump posted a $91.6 million bond to cover an $83.3 million defamation judgment against him in a case involving writer E. Jean Carroll. This case stemmed from Trump’s branding of Carroll as a liar after she accused him of sexually assaulting her decades ago. Trump has consistently denied the allegations.

Additionally, Trump has entered not guilty pleas in four criminal cases related to his attempts to overturn the outcome of the 2020 election, mishandling government documents following his departure from office in 2021, and payments made to a pornographic actress to keep quiet about an alleged affair prior to his 2016 election victory.