Donald Trump and co-defendants in his New York civil fraud case have posted a $175 million bond, bringing an end to a six-week ordeal. Trump aims to overturn a $464 million judgment, alleging a fraud scheme targeting banks and insurers. The bond, lowered from the original amount, was secured after Donald Trump missed a deadline set by the New York Attorney General’s office. Despite challenges in securing the bond, Trump’s legal team is optimistic about appealing the verdict. Explore the latest developments in Trump’s legal battle and the implications for his assets.
Former President Donald Trump and co-defendants in his New York civil fraud case have posted a bond of $175 million, according to a court filing Monday by an insurance company.
The posting brings to an end a six-week ordeal in which Trump scrambled to fend off possible seizure of property or assets stemming from a $464 million judgment by a judge who found he gained hundreds of millions through a yearslong fraud scheme targeting banks and insurers. Trump was required to post bond to avoid enforcement of the judgment pending his appeal.
Alina Habba, an attorney for Donald Trump, said Trump’s payment was made “as promised.”
“He looks forward to vindicating his rights on appeal and overturning this unjust verdict,” Habba said.
The bond was lowered by an appellate court from the $464 million figure to $175 million on March 25, hours after Donald Trump missed a grace period deadline extended by New York Attorney General Letitia James, whose office brought the case.
A spokesperson for James declined to comment. James had indicated her office would pursue Donald Trump’s assets if he failed to post bond.
“If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets,” she said during a February interview with ABC News.
Attorneys for Trump wrote in a March 18 filing in the case that it was a “practical impossibility” for the defendants to secure the original, near half-billion dollar bond. They said he had been turned down by over 30 surety companies.
“Very few bonding companies will consider a bond of anything approaching that magnitude,” wrote the lawyers, Alina Habba, Clifford Robert, Christopher Kise and John Sauer. They noted that surety providers often require collateral up to 120% to guarantee the bond, driving the amount Trump might need over $500 million.
That filing, made on March 18, listed more than 30 companies the Donald Trump Organization said it approached seeking the larger bond, all of whom declined. The one that ultimately provided Monday’s $175 million bond, Knight Specialty Insurance Company, was not on that list.
Frequently Asked Questions (FAQs) about Donald Trump’s $175 Million Bond in Civil Fraud Case:
What is the significance of the $175 million bond posted by Donald Trump?
The $175 million bond was posted to avoid the seizure of Trump’s property or assets following a $464 million judgment in his New York civil fraud case. It allows him to appeal the verdict without immediate enforcement of the judgment.
Why was Trump required to post a bond?
Trump was required to post a bond to prevent the enforcement of the judgment against him while he appeals the decision. This bond serves as financial security pending the outcome of the appeal.
Who brought the civil fraud case against Donald Trump?
The civil fraud case was brought by the New York Attorney General’s office, led by Letitia James. They accused Trump of participating in a fraud scheme targeting banks and insurers, resulting in the $464 million judgment.
Why did the appellate court lower the bond amount from $464 million to $175 million?
The appellate court lowered the bond amount to $175 million after Trump missed a grace period deadline set by the New York Attorney General’s office. This decision allowed Trump to secure the bond and avoid immediate enforcement of the original judgment.
What are the implications for Trump’s assets if he failed to post bond?
If Trump failed to post bond, the New York Attorney General’s office indicated they would pursue his assets through judgment enforcement mechanisms. This could potentially lead to the seizure of his assets to satisfy the judgment.
Why did Trump face challenges in securing the bond?
Trump’s legal team faced challenges in securing the bond due to the substantial amount required and the reluctance of surety companies to consider bonds of such magnitude. Over 30 surety companies reportedly turned down Trump’s request for the original bond amount.
Which company provided the $175 million bond for Trump?
The $175 million bond was provided by Knight Specialty Insurance Company, as stated in the court filing. This allowed Trump to meet the bond requirement and proceed with his appeal.
What is Trump’s legal team’s stance on the appeal?
Trump’s legal team expressed optimism about appealing the verdict and overturning the judgment. They aim to vindicate Trump’s rights through the appeal process and believe the verdict to be unjust.
What is the role of the $175 million bond in Trump’s legal battle?
The $175 million bond allows Trump to continue his legal battle by appealing the judgment without facing immediate enforcement actions. It provides financial security pending the outcome of the appeal process.