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Donald Trump posts $175 million appeal bond he owes in NY civil fraud case

April 2, 2024
in Business
Donald Trump posts $175 million appeal bond he owes in NY civil fraud case
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Donald Trump on Monday posted a $175 million appeal bond in his New York civil fraud case, an amount reflecting the big break a Manhattan appeals court had granted him last week on the nearly half a billion dollars he and his company actually owe the state.

The former president secured the bond on Monday via Knight Speciality Insurance Company, a Los Angeles surety company.

Knight Insurance published a certification that it has provided Trump’s bond.

By posting the bond before an April 4 deadline, Trump avoids the risk of New York Attorney James seeking to collect on what he owes by selling off his New York properties at a city-run sheriff’s sale. James had threatened that she would come after his real estate if he missed his deadline.

Last month, Trump and executives at the Trump Organization were ordered to pay out $454 million plus interest in a New York civil fraud trial after Judge Arthur Engoron ruled they had conspired to inflate the value of their assets.

With interest accruing at $112,000 per day, that sum has since increased to a whopping $469 million. Trump is personally responsible for about $458 million of that, as of Monday.

But Trump was thrown a fiscal lifeline a week ago — the deadline for posting a bond for the nearly half-a-billion dollar judgment — when an appellate court ruled that posting a bond for just $175 million of what he owes will suffice.

The bond sets the money aside — untouchable by either Trump or state officials — while he appeals the case. Whoever wins on appeal will get to keep the money.

“This monumental holding reigns in Judge Engoron’s verdict, which is an affront to all Americans,” Trump’s lawyer, Alina Habba wrote in a statement following Monday’s appellate decision.

“This is the first important step in fighting back against Letitia James and her targeted witch hunt against my client, which started before she ever stepped foot in office,” the lawyer said, referring to the state attorney general.

James’ office had pushed back against lowering the bond amount, arguing that should Trump lose on appeal, state officials would need to chase him for whatever money he owes.

Trump’s lawyers have made a strategy out of attempting to delay his court cases, and it’s unclear exactly how long the appeal process will take.

But under Monday’s ruling, the earliest that first-level appellate arguments could be heard will be September.

Given that timing, it’s unlikely his appeals will be exhausted — and James will see any money — by Election Day, experts told Business Insider.

With the interest stacking up every day, he’s betting pretty big on winning this appeal.

If Trump loses his appeal, he and his associates will then owe the remaining amount, plus interest.

A spokesperson for Trump did not immediately respond to a request for comment from BI.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Business Insider – https://www.businessinsider.com/donald-trump-posts-bond-after-court-reduction-2024-4

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