Trump cannot post bond to cover the US$454 million civil fraud judgment, according to his attorneys.

 Trump cannot post bond to cover the US$454 million civil fraud judgment, according to his attorneys.

File photo: On March 2, 2024, Donald Trump, a Republican presidential contender and former US president, talks on stage during a campaign rally in Richmond, Virginia. Image credit: Jay Paul/Reuters

NEW YORK: On Monday, March 18, Donald Trump's attorneys informed a New York appellate court that he is unable to provide a bond equal to the full amount of his US$454 million civil fraud verdict while he files an appeal.

"Obtaining an appeal bond in the full amount" of the verdict "is not possible under the circumstances presented," the former president's attorneys stated in a court statement.

Trump owes US$456.8 million plus interest. He owes US$467.3 million in total, along with co-defendants that include his business and senior executives. According to Trump's attorneys, they would have to provide $557 million in collateral in order to receive a bond.

A state appeals court judge said last month that in order to stop the enforcement of the order, Trump must post a bond for the entire sum. judgment, scheduled to start on March 25.

In February, Judge Arthur Engoron rendered a decision declaring that Trump, his business, and prominent figures—such as his sons Eric and Donald Trump Jr.— schemed for years to deceive banks and insurers by inflating his wealth on financial statements used to close agreements and obtain loans.

The judge imposed severe restrictions on Trump's corporate enterprise, the Trump Organization, in addition to other punishments.

While he files an appeal, Trump is requesting that the ruling be stayed by the whole panel of the state's intermediate appellate court. Formerly, his attorneys suggested posting a $100 million bond, but Judge Anil Singh of the appeals court turned it down. A legal device known as a stay suspends collection while the appeal is pending.

In an affidavit submitted to the court, a real estate broker that Trump hired to help with the bond's acquisition stated that not many bonding businesses would contemplate providing a bond of the necessary magnitude.

The remaining bonding organizations "will only accept cash or cash equivalents (such as marketable securities) as collateral," not "hard assets such as real estate."

This kind of bond is uncommon, if not unheard of. When a bond of this kind is issued—an uncommon occurrence—it is given to the biggest publicly traded corporations worldwide, not to private enterprises or people," the broker, Gary Giulietti, noted.

On February 26, just a few days after the ruling became final, Trump filed an appeal. His attorneys have enquired of the the state's trial court's Appellate Division to determine if Engoron "committed errors of law and/or fact," abused his authority, or "acted in excess" of his authority.

To file an appeal, Trump was not obliged to pay the fine or post a bail, and doing so did not immediately stop the judgment from being enforced.

In the event that Trump is unable to pay the judgment, Democratic Attorney General of New York Letitia James has stated that she will look to confiscate some of his assets.

If Trump were to deposit funds, assets, or an appeal bond covering his debt, he would be granted an automatic stay of proceedings. Additionally, he had the choice—which he is currently pursuing—to request that the appeals court issue a stay with a bond for less money.

In addition to buildings and other investments, Trump stated during his testimony last year that he possessed approximately $400 million in cash. He claims that his net worth is in the billions.

A jury found in January that Trump owed writer E Jean Carroll US$83.3 million for defaming her after she accused him of sexually abusing her in a Manhattan department store in the 1990s. Trump just posted a bond while he files an appeal that covers that sum.

Carroll also received an additional US$5 million from a jury in a separate trial last year.