Article Summary –
Former President Donald Trump’s lawyers have filed a court document stating that it is “a practical impossibility” for him to secure a bond for the $464 million fraud judgment against him. They have approached around 30 surety companies through four different brokers, but none will accept real estate as collateral and typically require around 120% of the judgment amount, which would be about $557 million. Trump’s team is arguing that the penalty is “grossly disproportional” and are also arguing that he shouldn’t have to put up any bond at all.
Trump Unable to Secure Bond for $464 Million Fraud Judgment
According to a recent court filing, ex-President Donald Trump has struggled to secure a bond for the $464 million fraud judgment against him. Trump and his company must post the full bond amount by next week to prevent New York Attorney General Letitia James from collecting while he appeals. Despite diligent efforts, including negotiations with one of the world’s largest insurance companies, securing an appeal bond for the full judgment amount has proven practically impossible.
No Success with Surety Companies
Approaching around 30 surety companies via four separate brokers has not yielded positive results for Trump’s team. These companies typically require around 120% of the judgment amount as collateral, amounting to an estimated $557 million. Despite Trump’s significant real estate holdings, these companies only accept cash or cash equivalents, such as marketable securities.
High Bond Costs and Unrecoverable Premiums
The surety companies would likely demand bond premiums of approximately 2 percent per year with two years paid in advance, equating to an unrecoverable upfront cost of over $18 million. Overall, Trump’s team estimates that the actual amount of cash or cash equivalents required to secure the bond and maintain business operations exceeds $1 billion.
The Defence’s Arguments
Despite claiming an inability to afford the bond, the defence also argues that securing the judgment will not be a problem for the attorney general, given Trump’s extensive real estate assets. Additionally, they dispute the $464 million penalty as grossly disproportional, maintaining there were no financial losses or damages and thus no victims. Last month, Trump’s lawyers proposed reducing the bond amount to $100 million, but they now argue he should not have to post any bond. The attorney general’s office, however, demands the full amount.
Other Ongoing Legal Battles
In a separate defamation case involving writer E. Jean Carroll, Trump recently posted a $91 million bond to secure a $83 million judgment while he appeals that verdict.
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