NY Pleads to Court: Block Trump from Skipping $454M Bond in Fraud Appeal

Clash intensifies in high-stakes financial legal battle.

by Nouman Rasool
NY Pleads to Court: Block Trump from Skipping $454M Bond in Fraud Appeal
© Joe Raedle/Getty Images

In a recent legal maneuver within the appellate courts on Wednesday, the legal team representing the state of New York firmly resisted the appeals from former President Donald Trump, regarding his claim that securing a bond to cover a staggering $454 million civil fraud judgment during his appeal process is unfeasible.

Trump's legal representatives had argued earlier in the week that finding an underwriter to back the full sum was proving to be an insurmountable challenge. However, the state's counterargument highlighted a lack of exhaustive efforts on the part of Trump and his associates to find a viable solution.

Dennis Fan, representing the New York Attorney General's office, criticized the defendants for not presenting a viable alternative that would effectively secure the judgment. He proposed several strategies, such as splitting the bond amount among various underwriters or temporarily relinquishing some of Trump's valuable real estate holdings to the court's custody during the appeal.

This suggestion comes in light of a recent judgment accusing Trump, his enterprise, and top executives of grossly inflating assets on financial documents used for acquiring loans and insurance.

Trump's Legal Rebuke

In response to these allegations, one of Trump's legal advisors, Christopher Kise, issued a statement accusing New York Attorney General Letitia James of misrepresenting facts and twisting the law for political gains against Trump.

Trump, maintaining his innocence, has vocalized his frustrations regarding the case and the bond requirement, emphasizing the unfairness of the system that demands financial security before an appeal can proceed. The judgment necessitates Trump to disburse over $454 million in fines alongside accruing interest.

Additionally, he confronts more than $543 million in personal legal obligations arising from this civil fraud case and two lawsuits by E. Jean Carroll, who accuses Trump of se---- assault in the 1990s and subsequent defamation.

Trump denies all allegations. Notably, Trump has already secured a $91.6 million appeal bond in one of Carroll's suits and allocated over $5 million in escrow for the other pending an appeal. Yet, his lawyers have appealed to the state's intermediate appellate court for exemption from posting a bond for the $454 million judgment in the business fraud case, claiming the impossibility of meeting such demands under the current circumstances.

The insistence on cash or liquid assets over real estate as collateral, necessitating a cover of 120% of the judgment or over $557 million, underscores the unique challenges posed by such a large bond. Gary Giulietti, a Trump associate and testimony provider during the trial, remarked on the rarity and difficulty of securing such large bonds, typically reserved for major public companies, contrasting with Trump's private enterprise status.