Former President Donald J. Trump has reached a deal to avoid paying a $454 million judgment in his civil fraud case while he appeals the penalty. The deal involves a bond that will prevent New York’s attorney general, Letitia James, from collecting the $454 million until Mr. Trump’s appeal is resolved. The judgment came after accusations that Mr. Trump fraudulently inflated his net worth by as much as $2 billion, and a judge ruled in favor of Ms. James. To secure the deal, Mr. Trump had to post a $175 million bond from Knight Specialty Insurance Company.
The bond essentially promises to cover the judgment against Mr. Trump if he loses his appeal and fails to pay. Details of the deal are private, but it is likely that Mr. Trump had to pay a fee to the bond company and pledge cash and other liquid investments as collateral. While Mr. Trump measures his net worth in the billions, much of that comes from real estate which bond companies typically do not accept as collateral. Despite having over $350 million in cash and liquid investments, it was still a challenge for Mr. Trump to secure the full $454 million bond.
Without the bond, Ms. James could have moved to collect the judgment at any moment, potentially freezing bank accounts and seizing some of Mr. Trump’s properties. The terms of the bond may be costly, but Mr. Trump had little choice in the matter. Ms. James filed the lawsuit against Mr. Trump and his family business in 2022, accusing him of manipulating property values to obtain favorable loans. The judge overseeing the case imposed a $454 million penalty, which Mr. Trump is now appealing while the bond prevents immediate collection.
While the bond clears one major liability for Mr. Trump, he still faces other legal challenges. He is due to face four criminal indictments in four different cities, with the first trial set to begin in Manhattan in two weeks. In that case, Mr. Trump is accused of covering up a sex scandal during and after the 2016 presidential campaign. Despite these ongoing legal issues, Mr. Trump remains the presumptive Republican nominee for president, showing the complex legal situations he continues to navigate. This recent deal to avoid paying the $454 million judgment is just one part of his broader legal battles.
