Former President Donald J. Trump faced a potential financial disaster as he needed to secure a bond of nearly half a billion dollars in his civil fraud case. However, a New York appeals court granted him a reprieve by accepting a smaller bond of $175 million. This unexpected victory allows Trump to maintain control over his bank accounts and properties while he appeals the case brought by the New York attorney general’s office. He now has 10 days to obtain the bond, which would be provided by an outside company promising to cover the judgment if he cannot pay.
The trial judge, Arthur F. Engoron, had found Trump liable for inflating his net worth to benefit from loans and other financial gains. The $454 million penalty included interest payments saved by misleading lenders and profits from property sales. Additional restrictions imposed on Trump and his family business include a prohibition on running any New York company for three years and obtaining loans from New York banks. Similar restrictions apply to his adult sons for two years and an independent monitor will oversee the family business. Trump intends to appeal all the punishments, with the financial penalty being particularly concerning.
Before the appeals court accepted the smaller bond, Trump faced the challenge of securing a bond for the full amount to avoid paying the $454 million judgment while appealing the case. However, his lawyers revealed that it was nearly impossible to obtain a bond for the full amount, despite approaching multiple bond companies. The issue lies in the fact that much of Trump’s wealth is tied up in real estate, which bond companies are reluctant to accept as collateral. While he had sufficient cash, stocks, and bonds to post bonds in other cases, he lacked the collateral required for the full amount in this case.
With the acceptance of the smaller bond, Trump now has the opportunity to prevent immediate payment of the $454 million judgment as he pursues his appeal. The reduced bond amount of $175 million provides him with some breathing room as he navigates the legal challenges ahead. However, he must still secure the bond within the specified timeframe to maintain control over his financial assets and properties. This development represents a crucial lifeline for the former president in his ongoing legal battle with the New York attorney general’s office over allegations of fraud and financial misconduct.
