Legal analyst Andrew Weissmann cautioned on Sunday that the nearly $92 million bond posted by Donald Trump as he appealed the jury’s verdict in E. Jean Carroll’s civil defamation case could make him “indebted” to the individuals backing the bond.
Donald Trump, the presumed Republican nominee for the 2024 presidential election, was instructed in January to compensate Carroll, a former columnist for Elle magazine, with a hefty sum of $83.3 million. This payment was awarded to redress the harm caused to her reputation after she accused Trump of sexually assaulting her in a department store dressing room during the 1990s. In a separate case, a jury had previously granted Carroll $5 million from Trump for sexual abuse and defamation. Trump has consistently denied these allegations and has attributed them to political motives.
The bond posted by Trump on Friday amounted to $91.6 million, which included the $83.3 million judgment and the statutory interest imposed by the State of New York. To secure the bond, Trump relied on the Federal Insurance Company, a subsidiary of the Chubb Corporation. This has led to speculation regarding the reasons behind the company’s decision to guarantee Trump’s bond and the individuals involved in making this choice.
During an interview on Sunday with MSNBC’s “Inside with Jen Psaki,” Andrew Weissmann, who previously served as the FBI’s general counsel and lead prosecutor in Robert Mueller’s investigation of Trump’s 2016 campaign, delved into the civil judgements against the former president.
“This is a prime example of running not only as an outsider but as an outlaw,” stated Weissmann, raising a thought-provoking question regarding civil cases and judgments. He further emphasized the importance of understanding a candidate’s loyalty and potential bias towards those who have financially supported their campaign. “The key concern lies in who the candidate feels indebted to. Will they be inclined to shape policies and show deference to those who have invested in their campaign?” Weissmann asked, shedding light on a critical aspect of political accountability.
According to him, it can be seen in a simple manner that he has $450 million reasons to be differential if someone else is providing the funds or co-signing. He emphasized the importance of voters knowing who is truly behind this issue.
Former President Trump is required to make additional payments in New York following a judgment in a civil fraud trial by Judge Arthur Engoron. In his New York civil fraud case, Trump and his two adult sons, Donald Jr. and Eric, along with The Trump Organization and two executives, were accused of fraudulently inflating asset values to obtain more favorable bank loans and tax benefits. The judgment recently imposed a fine of approximately $355 million, plus interest. Trump maintains his innocence and alleges that the case is politically motivated. He plans to appeal the verdict.
Chubb chairman and CEO Evan Greenberg has a history with Trump, as he was appointed to his Advisory Committee for Trade Policy and Negotiations during his presidency in 2018. According to The Washington Post, it is unclear from court records what collateral Trump provided to obtain the bond from Chubb.
Chubb, in a statement sent to Newsweek, stated their policy of not commenting on client-specific information. They highlighted that their surety division offers appeal bonds as part of their regular business operations. These bonds play a crucial role in the American justice system, ensuring the protection of both defendants and plaintiffs. Chubb emphasized that the guarantee of these bonds provides peace of mind to plaintiffs as they await the finality of the appeals process. In exchange for issuing the bond, the surety receives full collateral from the defendant.
According to the statement, appeal bonds serve as a guarantee for plaintiffs, ensuring that they will receive the damages awarded to them once the appeal is confirmed. This eliminates the need for plaintiffs to pursue defendants for payment and provides them with peace of mind while awaiting the finalization of the appeals process. In exchange for issuing the bond, the surety receives full collateral from the defendant.