Lawyers for former President Donald Trump are facing challenges in securing a bond for the nearly half-billion dollars needed to pause a judge’s ruling in a New York civil fraud case. The judgment, with accrued interest, requires the defendants, including Trump, to pay a $464 million tab. Trump’s lawyers argue that this bond requirement is unprecedented and grossly disproportional to the offenses they were found liable for, which include a decade-long scheme to defraud banks and insurers using overvaluations of properties and Trump’s net worth.
The lawyers have stated that very few bonding companies are willing to consider a bond of such magnitude, as it effectively requires cash reserves approaching $1 billion. Trump Organization general counsel Alan Garten explained that the company approached over 30 surety companies, but most do not have the financial strength to handle a bond of that size. Of the few that do, many are unwilling to accept the risk associated with such a large bond. Trump recently posted a $90 million bond to appeal another legal defeat, but securing a bond for the civil fraud case has proven to be more challenging.
An affidavit from an insurance executive, Gary Giuletti, stated that he has been in contact with some of the largest insurance carriers in the world to try and obtain a bond for Trump in the case. However, Giuletti believes that it is not possible for the defendants to secure a bond of this size. Giuletti, who testified as an expert witness in Trump’s defense during the trial, has faced criticism from Judge Arthur Engoron for his close personal relationship with Trump and personal financial interest in the case’s outcome.
Attorney General Letitia James’s office has set a deadline of March 25 for Trump to put up a bond for the entire judgment in order to prevent her office from collecting the damages while he appeals. If Trump fails to pay the judgment, the state could seek to seize property from him. The legal battle surrounding the civil fraud case continues, with Trump’s lawyers facing challenges in securing a bond of unprecedented magnitude. Despite efforts to obtain a bond through various means, the defendants are struggling to meet the financial requirements set by the court.
Overall, the case highlights the complex legal challenges faced by Trump and his legal team as they navigate multiple legal battles and attempt to secure bonds for significant judgments. The issues surrounding the bond requirement in this case shed light on the financial complexities involved in high-stakes legal proceedings and the challenges of meeting such obligations in a timely manner. The outcome of this case will likely have significant implications for Trump and the other defendants involved in the civil fraud case.
