Donald Trump
Donald Trump Unable To Pay $464 Million Appeal Bond To Settle Judgment In Fraud Case
Former US President Donald Trump is struggling to secure an appeal bond to settle a multi-million-dollar civil judgment against him.
According to reports, Donald Trump has to pay a $464 million bond to satisfy a $454 million judgment against him in a New York fraud case. However, the 77-year-old businessman’s legal team recently suggested he doesn’t have enough liquid cash to hand over funds. As a result, Donald Trump’s lawyers have been actively seeking an insurance company willing to back the massive financial penalty, but the task has been a challenge.
Donald Trump
Trump’s team reportedly claimed,
“The amount of the judgment, with interest, exceeds $464 million, and very few bonding companies will consider a bond of anything approaching that magnitude.”
If you didn’t know, Attorney General Letitia James accused Trump, his two adult sons, the Trump Organization, and the company’s top executives of falsely inflating Trump’s asset values for years to boost his net worth and gain financial benefits. After a Manhattan Supreme Court judge ruled in favor of Letitia James, the media personality was ordered to pay the $454 million judgment.
Donald Trump
Ultimately, if Trump doesn’t obtain an appeal bond or pay the entire judgment, Letitia James will seize Trump’s property.
It’s noted that in order to secure a complete appeal bond you would need around $1 billion in cash or cash equivalents to offer as collateral, which the former president and his company allegedly don’t have. Additionally, none of the insurance companies will accept non-liquid assets — such as real estate — as collateral.
Gary Giulietti, who was hired to help Trump and his co-defendants to obtain a bond, said,
“Simply put, a bond of this size is rarely, if ever, seen. In the unusual circumstance that a bond of this size is issued, it is provided to the largest public companies in the world, not to individuals or privately held businesses.”
Trump and his team are asking the appeals court to pay the monetary judgment without requiring the posting of the bond during the appeal. A decision on his petition has yet to be made.
Donald Trump
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