Former President Donald Trump and his associates have been ordered by an appeals court to secure a $175 million bond or deposit. This measure is to protect their assets while they challenge the verdict of their real estate fraud trial. The court’s decision comes as a relief to Trump, who has been urgently trying to gather the necessary funds before New York Attorney General Letitia James could initiate the process of seizing his assets. According to the court’s directive, the defendants are given a 10-day window to arrange for the bond or deposit. Trump, the presumptive Republican presidential nominee, finds himself grappling not only with the $454 million civil fraud judgment but also an $83.3 million defamation trial loss to advice columnist E. Jean Carroll.
Reacting swiftly to the court’s ruling, Trump took to Truth Social, stating his intention to comply with the appellate division’s decision by posting either a bond, equivalent securities, or cash. He also criticized the $454 million judgment, deeming it absurd and unjust. Trump’s statement highlighted his view that such legal challenges not only tarnish New York’s reputation but also contribute to business exodus and rising violent crime, urging for a swift resolution to these matters.
Despite Trump’s portrayal of New York City as besieged by crime and economic downturn, statistics indicate otherwise. New York City boasts one of the lowest crime rates among major U.S. cities, with significant reductions in various crime categories last year, alongside achieving an all-time high in private sector employment.
In the case involving E. Jean Carroll, Trump managed to post a nearly $92 million bond just in time to prevent Carroll from commencing the collection on her judgment. Trump has lodged appeals in both legal battles.
The $454 million judgment against Trump and certain business entities includes approximately $355 million identified by trial Judge Arthur Engoron as profits gained through fraudulent means, such as inflating asset values to secure better loan and insurance terms, with the remaining sum attributed to interest. Engoron also imposed judgments totaling about $10 million against Trump’s eldest sons, Don Jr. and Eric, and former Trump Organization Chief Financial Officer Allen Weisselberg.
Trump’s legal team has faced challenges in securing a bond to cover the judgment, with 30 insurance companies reportedly refusing to accept real estate as collateral. This has led to the assertion that arranging for a $464 million bond is practically unfeasible. In response, James’s office has highlighted the risk of Trump attempting to circumvent the judgment or complicating its enforcement post-appeal. It was revealed that Trump and his co-defendants, including his adult sons and some former Trump Organization executives, breached court orders by transferring $40 million in cash without notifying an independent monitor assigned to oversee their asset management during the ongoing case.
As the legal tussle continues, James has vowed to pursue Trump’s assets if he fails to secure the required bond or deposit. This could entail liquidating bank accounts and seizing assets across the United States. The urgency of securing funds from New York bank accounts was underscored, with the potential for immediate freezing and turnover of funds in a matter of days or weeks if necessary.