Former President Donald Trump’s bid to delay enforcement of a civil fraud judgment in New York hits roadblocks, highlighting deepening legal and financial challenges
Former President Donald Trump is dealing with financial struggle in a New York civil fraud case where he has been ordered to pay $464 million. His lawyers are struggling to find a company to guarantee this amount, which is necessary for him to continue his appeal. If he fails to secure the bond by March 25th, some of his real estate assets could be seized by the state’s attorney general. Trump claims that finding a bond of this size is nearly impossible and that even large insurance companies have been hesitant to provide it. His legal team has approached numerous companies without success. The case stems from allegations that Trump inflated his assets to obtain better loan deals. Despite his attempts to delay proceedings, including appealing for a smaller bond amount, the legal situation remains challenging. Additionally, Trump faces other financial burdens, including an $83 million payment following a defamation case. In a separate criminal case, a judge denied his attempt to block key witness testimonies, indicating that his legal challenges are mounting.
Financial Times
The Financial Times covers the legal challenges faced by former US President Donald Trump in a New York civil fraud case. Trump’s lawyers state that he is unable to secure the bond necessary to delay the enforcement of a $464 million judgment against him and his business empire. Despite efforts to negotiate with major insurance companies and approach numerous surety companies, including prominent names like Allianz and Berkshire Hathaway, Trump has been unsuccessful. The judgment, which stems from allegations of inflating asset values, poses a significant financial strain on Trump as he navigates mounting legal costs. New York’s attorney general, Letitia James, has hinted at seizing Trump’s assets if he fails to comply. Trump’s plea for an extension comes amidst his bid for the presidency in the upcoming election. The article delves into the complexities of securing such a substantial bond, the premium costs involved, and the challenges posed by Trump’s private financial status. Despite Trump’s claims of unfair treatment and constitutional violations, his attempts to delay enforcement have faced resistance from the appeals court. The article also highlights Trump’s previous bond postings in other legal cases and the breakdown in negotiations with Chubb Corporation due to disagreements over collateral.
The New York Times
The New York Times article discusses Donald Trump’s current financial predicament regarding his failure to secure a half-billion-dollar appeal bond in his civil fraud case in New York. Trump’s lawyers revealed that despite approaching around 30 bond companies, they have been unable to secure the bond needed to stave off efforts to collect a $454 million judgment against him. If Trump fails to produce the bond by March 25, he faces the risk of financial disaster and the potential seizure of his New York properties or freezing of his bank accounts by the state’s attorney general. The article outlines the legal and financial complexities Trump faces, including the necessity of collateral and the lack of liquidity in his assets. Trump’s appeal options, potential bankruptcy filings for his corporate entities implicated in the fraud case, and his campaign’s financial struggles are also discussed. Additionally, the article mentions a crucial hearing scheduled for March 25 in Trump’s Manhattan criminal case, where he faces charges related to a sex scandal.
Sky News
Sky News reports that Donald Trump is struggling to find the $557 million bond required to delay the enforcement of a civil fraud trial judgment against him. The judgment stems from accusations that he schemed to deceive banks and insurers by inflating his wealth on financial statements to secure loans and deals. Trump was fined $454 million, which could lead to the seizure of his assets if he fails to produce the bond by March 25. Despite his claims of being worth billions and having $400 million in cash, Trump’s lawyers argue that obtaining such a large bond is not feasible. They cite the reluctance of bonding companies to offer such a substantial amount. Trump’s proposal for a $100 million bond was rejected by the court. The article highlights Trump’s mounting legal battles as he prepares to run for president in the upcoming election against Joe Biden. New York Attorney General Letitia James has threatened to seize Trump’s assets if he cannot pay the judgment.
The Washington Post
The Washington Post reports that Donald Trump has been unable to secure financing for an appeal bond of over $450 million to cover a judgment in a civil fraud case brought against him by the New York attorney general. Trump’s lawyers stated in a court filing that they have been unsuccessful in convincing a surety company to accept property as collateral for the bond. Despite approaching 30 surety companies through four brokers, none were willing to accept real estate collateral for the bond. The deadline for posting the bond is looming, and if not met, New York state officials could begin seizing Trump’s assets as early as next week.
The article highlights the challenges faced by Trump and the Trump Organization in securing such a large bond, particularly given Trump’s claim to have significant wealth tied up in real estate. Trump’s lawyers have described the situation as a “practical impossibility” and have requested permission to send the bond fulfilment issue to the state’s highest court for review.
Legal experts note that surety companies typically require the full amount of the judgment as collateral, particularly if there’s a high likelihood of the appeal failing. Trump’s limited relationships with big banks on Wall Street further complicate his ability to secure financing for the bond.
If Trump fails to post the bond by the deadline, New York state law allows the attorney general’s office to instruct law enforcement to seize his assets, including draining his bank accounts or seizing valuable assets like cars or artwork. However, enforcement may be relatively straightforward given the detailed information about Trump’s assets revealed during the legal proceedings.
CBS
According to CBS News, former President Donald Trump’s legal team has stated that it’s unlikely for him to secure a bond of nearly half a billion dollars needed to pause a judge’s ruling in a New York civil fraud case. Trump and other defendants were saddled with a $464 million judgment, including accrued interest, stemming from allegations of a decade-long scheme to defraud banks and insurers through overvaluations of properties and Trump’s net worth.
Trump’s lawyers argued that the bond requirement is unprecedented and called it “grossly disproportional” to the offences for which Trump and others were found liable. They noted that very few bonding companies would consider such a large bond, and those that might have the financial strength are unwilling to accept the associated risk, particularly when it comes to real estate collateral.
The filing from Trump’s legal team came after he posted a bond of over $90 million in another legal case involving defamation allegations by writer E. Jean Carroll. Despite efforts by Trump’s team and an affidavit from an insurance executive stating that obtaining a bond for the current case is not possible under the circumstances, Attorney General Letitia James has maintained that Trump must post the bond by March 25 to prevent her office from collecting damages while he appeals. If Trump fails to do so, James’s office could seek to seize his property.
Moving Forward
Donald Trump’s struggle to secure a $464 million bond to delay the enforcement of a civil fraud judgment against him in New York reflects a mounting legal and financial challenge. Despite efforts by his lawyers to negotiate with numerous surety companies and propose various collateral options, including real estate, the task has proven exceedingly difficult. With a looming deadline and the potential seizure of assets at stake, Trump’s financial outlook appears increasingly precarious as he seeks reprieve from an appellate court while contesting the ruling.
