The office of New York Attorney General Letitia James has made a request to a state appeals court, urging them to mandate that former President Donald Trump post a bond that will fully cover the $454 million civil fraud judgment against him.
In court documents that were made public on Monday, the legal team of Trump put forward an argument stating that it would be extremely difficult for the former president to obtain a bond in the full amount, deeming it practically impossible. Trump’s attorneys had previously inquired whether he could make a partial payment of $100 million while he appeals the ruling.
According to a court filing on Wednesday, Dennis Fan, a senior assistant solicitor general in James’ office, stated that Trump’s legal team has not provided sufficient evidence to demonstrate his inability to secure the bond.
According to Fan, the defendants’ latest factual assertions and legal arguments do not provide sufficient evidence to justify their extraordinary request for a stay using a bond or deposit that is less than one-fourth of the amount of the money judgment.
He argued that the defendants’ claim of it being impossible to obtain a full bond is false. They believe that they must secure a single bond from a single surety for the entire judgment amount of $454 million.
On Wednesday, Trump’s representative was contacted by Newsweek via email to request a comment.
In 2022, James filed a civil fraud lawsuit against Trump. He accused Trump, along with his adult sons Donald Jr. and Eric, and other officials from The Trump Organization, of engaging in a long-term scheme. The scheme involved inflating Trump’s net worth and the value of his assets to secure more advantageous business loans.
New York State Supreme Court Justice Arthur Engoron, who presided over the case, ruled that Trump was guilty of fraud in the autumn. In February, a penalty of $355 million was imposed on Trump, which, including interest, amounted to a sum exceeding $454 million.
In the case, the former president has consistently proclaimed his innocence. Following Engoron’s announcement of the penalty, Trump expressed his frustration with the justice system in a post on Truth Social, referring to Engoron as “crooked” and James as “corrupt.”
If Trump fails to meet the deadline, James will have the authority to seize his assets, which includes the iconic Trump Tower. Trump has until Monday to post the required bond.
As each day passes, the penalty for non-payment continues to accumulate, adding interest to the already substantial amount of $112,000. At present, his outstanding debt stands at around $457 million.
According to Trump’s lawyers, he will be required to provide collateral that exceeds 120 percent of the judgment, totaling over $557 million.
According to the lawyers, it was mentioned to the appeals court that only a limited number of bonding companies would be willing to consider a bond of such a significant amount.
According to Fan’s filing, it is suggested that Trump has the potential to obtain a bond from multiple sureties rather than relying on just one. Additionally, it is contended that Trump may not be fully disclosing the actual value of his assets.
According to Fan, it appears that sureties may have declined to accept defendants’ specific holdings as collateral due to the requirement for a property appraisal in the case of Mr. Trump’s real estate. Additionally, Fan suggests that the value of his holdings may not be as substantial as the defendants claim.