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Friday, September 20, 2024
Friday September 20, 2024
Friday September 20, 2024

Trump struggles to secure $464m bond in fraud case

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Former president faces asset liquidation without bond for appeal

Donald Trump encounters a significant hurdle in the New York civil fraud case against him, as his legal team reports an inability to secure a $464 million bond required to continue his appeal. This bond, essential for Trump to challenge the hefty fine imposed on him, proves difficult to obtain, with over thirty companies approached yet none willing to take on such a vast financial guarantee.

The case, presided over by New York Judge Arthur Engoron, found Trump guilty of inflating asset values to obtain favourable loan terms, resulting in a substantial financial penalty and a temporary ban from conducting business within the state. Trump’s legal predicament worsens as potential asset liquidation looms unless he manages to pay the full amount in cash or secure the necessary bond.

Efforts to negotiate with major insurance entities have been futile, highlighting the exceptional nature of the bond’s magnitude, which typically caters to the world’s largest public corporations, not individuals or private enterprises. The legal team’s struggle is compounded by the court’s rejection of a proposed $100 million bond as an interim measure.

As interest accrues on the penalty at a staggering rate of at least $112,000 per day, Trump faces the pressing threat of asset seizure by New York’s attorney general if he fails to comply with the judgment. With Trump’s worth estimated at approximately $2.6 billion, alongside declared liquid assets of $400 million, the judgment presents a substantial financial challenge, further exacerbated by additional legal liabilities, including a $83 million obligation from a defamation case loss to E Jean Carroll.

This development is one of several legal battles Trump faces, with a New York judge recently ruling against his attempt to prevent key witness testimonies in a case involving allegations of falsified business records related to a hush money payment. The decision allows for the testimonies of Michael Cohen, Trump’s former lawyer, and Stormy Daniels, indicating a series of legal setbacks for the former president as he navigates through his multifaceted legal entanglements.

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