Trump and Co-Defendants Plan to Post $100 Million Bond in Civil Fraud Case

Donald Trump and his co-defendants are planning to post a $100 million bond in an effort to pause enforcement of their civil fraud judgment, according to their attorneys. This amount represents only a fraction of the total $464.6 million they have been ordered to pay.

New York Attorney General Letitia James, who brought the fraud case, has asked the appeals court to deny Trump's bid for a stay of the judgment. She argues that a "complete" appeal bond, which could cost more than $550 million, is necessary, and there is no merit to the claim that a partial undertaking of less than a quarter of the judgment amount is sufficient. James also states that Trump has insufficient liquid assets to satisfy the judgment and would need to raise capital to do so.

Judge's Ruling and Financial Implications

Judge Arthur Engoron's ruling found Trump, his two adult sons, his company, and its executives liable for submitting fraudulent information on key financial statements, resulting in a total judgment of $464.6 million in fines and interest. Trump's individual judgment exceeds $454 million, and the penalties interest continues to accrue at a 9% annual rate, adding nearly $112,000 a day to Trump's bill alone. Moreover, Engoron's judgment includes a three-year prohibition on Trump running a business in New York and applying for loans from the state's registered financial institutions.

Challenges in Posting a Complete Bond

Trump's attorneys argue that it would be impossible to secure and post a complete bond due to the exorbitant and punitive amount of the judgment, along with the prohibition on lending transactions. They note that a surety bond agency would typically set the bond amount at 120% of the judgment to account for interest and appeal costs, potentially reaching upwards of $550 million. Despite this, Trump's defense plans to secure and post a $100 million bond, which they believe would be adequate to secure a stay of the judgment, especially when coupled with oversight measures.

Oversight Measures and Financial Monitor

The defense attorneys highlight that the court-appointed financial monitor overseeing their clients' vast real estate holdings in New York is ensuring that there is no dissipation or transfer of assets. They argue that this oversight alone would be sufficient to secure any affirmed judgment, with the appellants' bond serving as additional security.