A version of this story appeared in the On Background newsletter from The Washington Times. Click here to receive On Background delivered directly to your inbox each Friday.
Former President Donald Trump has been unable to secure a bond while he appeals the $464 million judgment against him for business fraud claims brought by New York Attorney General Letitia James, his lawyers said Monday.
In a court filing, Mr. Trump’s lawyers said they approached 30 surety companies through four separate brokers and found the amount and circumstances around the judgment made posting a bond “a practical impossibility.”
The former president needs the bond by next week to stave off Ms. James’ attempt to collect on the full amount of the judgment, which concluded that Mr. Trump and his real estate company submitted fraudulent documents to gain favorable terms on loans and insurance. A bond is typically a higher percentage than the judgment amount, around 120%.
“A bond requirement of this enormous magnitude — effectively requiring cash reserves approaching $1 billion is unprecedented for a private company,” Mr. Trump’s attorneys wrote. “Even when it comes to publicly traded companies, courts routinely waive or reduce the bond amount.”
The lawyers said the courts should stay the judgment while Mr. Trump appeals Judge Arthur Engoron’s decision in the higher courts.
Mr. Trump’s online critics said paying up should be easy for a self-professed billionaire and presumptive GOP nominee for president.
However, experts say the sheer amount involved would likely wipe out Mr. Trump’s cash stores, forcing him to sell off the key source of his wealth — properties.
Mr. Trump’s lawyers said a “fire sale” of his properties would cause irreparable harm while he appeals.
“The amount of the judgment, with interest, exceeds $464 million, and very few bonding companies will consider a bond of anything approaching that magnitude,” Mr. Trump’s lawyers wrote. “The practical impossibility of obtaining a bond interferes with defendants’ right to appeal and threatens this court’s appellate jurisdiction.”
Mr. Trump faces four criminal cases as he campaigns for president. None of them have gone to trial, as prosecutorial missteps and pre-trial motions lead to delays, though the former president has taken a beating in the civil courts
Earlier this month, Mr. Trump posted a nearly $92 million bond to satisfy the courts while he appealed a massive jury decision that found him liable for defaming former magazine columnist E. Jean Carroll.
Judge Engoron ordered Mr. Trump in February to pay $355 million plus interest, which has amounted to more than $450 million and grows each day, after he concluded that the former president and his oldest sons lied about the value of their properties.
He also barred Mr. Trump from running any business in the state for three years, and his two elder sons Donald Trump Jr. and Eric Trump each for two years.
Scrounging together a bond for the much higher judgment in the fraud case is a taller order. Mr. Trump’s lawyers said the terms of the judgment made it harder to cobble together money for the bond.
“The provisions preventing the individual defendants from serving as officers and directors of businesses that they have successfully helmed for decades, and preventing them from seeking loans from any bank registered in New York, which encompasses most nationwide lending institutions, radically interfere with defendants’ ability to continue to conduct profit-making activities during the pendency of appeal,” the lawyers wrote.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
Please read our comment policy before commenting.