The New York Court of Appeals on Wednesday rejected Donald Trump's attempt to freeze his sentence in a civil fraud case. The ruling currently means the former president will have to post hundreds of millions of dollars in bail in the coming weeks.
Judge Anil Singh declined to specify the bail amount, effectively requiring President Trump to post bail on the full $454 million judgment.
Trump's defense team said they were prepared to post bail of $100 million, arguing that Trump had no way to raise more money than by selling some of his real estate.
“If the conditions outlined here are not reserved, it is likely that the property will need to be sold in order to raise funds in emergency circumstances and there will be no way to recover the sold property after a successful appeal. “There will be no means to recover the resulting finances,'' the attorney general argued, “a loss to the attorney general.''
Judge Singh agreed to suspend enforcement of part of the ruling that would bar Trump and his sons from running the family business for several years. The ruling means former presidents Donald Trump Jr. and Eric Trump can remain in charge of the Trump Organization for the foreseeable future.
This order is interim before the motion is filed with the full committee of the First Department of the Appellate Division.
In a ruling issued earlier this month, Manhattan Supreme Court Justice Arthur Engoron wrote that Trump, his adult sons and two former executives at the Trump Organization had committed “numerous acts of fraud and fraud” to inflate the numbers. The company was found to be responsible for 10 years of fraudulent business activities that included “misrepresentation.” Using Trump's net worth to obtain more favorable loan terms. He ordered the defendants to pay a total of $464 million in disgorgement and prejudgment interest.
Republican presidential candidate and former President Donald Trump speaks at a campaign event at Winthrop Coliseum in Rock Hill, South Carolina, on February 23, 2024.
Alex Wong/Getty Images, File
Trump's lawyers argued in a court filing early Wednesday that the fine is “unprecedented and punitive.”
“The exorbitant and punitive judgment amount and the illegal and unconstitutional blanket ban on lending transactions will make it impossible to secure and post a full bond,” the attorneys said in their filing. “Nevertheless, appellants plan to secure and post a bond of $100 million.”
Trump's lawyers say in a filing that setting bail to cover the entire sentence is not only impossible but unnecessary given existing oversight by the Trump Organization's independent watchdog. said. The filing says the current oversight and $100 million bail will ensure that New York State Attorney General Letitia James can collect the judgment if necessary.
“These assets are not going anywhere, and given the practical realities of monitor surveillance and the existence of highly public judgments, those assets cannot go anywhere,” the filing states. is stated.
In their motion for an injunction, defense attorneys Clifford Robert and Alina Haba called Engoron's order “harsh” and said the punishment would unfairly interfere with the Trump family's real estate business. Stated.
“The extraordinary relief granted by the Supreme Court is punitive, manifestly inappropriate, unsupported by the evidence, and/or unavailable under Presidential Law, and is considered time-barred by this Court. premised upon the determined claims,” the motion said.
The filing references statements made by New York Attorney General Letitia James in an interview with ABC News, saying, “The Attorney General's public statements that the appellant's property would be immediately seized in order to satisfy the judgment… “Threat” is cited.
“If we don't have the funds to pay off the judgment, we will ask the court for a mechanism to enforce the judgment and we will ask the judge to seize his assets,” James told ABC News last week.
In response to defense motions, lawyers for the New York state attorney general pushed back against President Trump's plan to post bail at $100 million, saying that Trump and his co-defendants would not be able to enforce a $464 million judgment. He argued in his own motion that there was a possibility of an attempt to evade.
“Contrary to Defendants' assertions, there is a significant risk that Defendants will attempt to avoid enforcement (or make enforcement more difficult) of their judgments after appeal,” the Attorney General's submission states. .
Dennis Hwang of the AG's office suggested in a filing that former President Trump's lawyers acknowledged the former president lacked funds to cover the verdict.
“Defendants' contention that a full bond or surety bond is unnecessary because they are willing to accrue a partial pledge of less than one-fourth of the judgment amount is without merit,” Huang wrote. “Defendants generally acknowledge that Mr. Trump's liquid assets are insufficient to satisfy the judgment. To do so, defendants will need to 'raise capital.'”
Hwang highlighted past actions by the Trump Organization, arguing that they show the possibility of avoiding fines, and that a full bond is required to ultimately ensure recovery of the judgment. insisted. He cited $40 million in transfers previously noted by the company's independent watchdog, as well as recent efforts to list Trump's businesses with addresses in Florida.
“And to this day, despite their claims of urgency, defendants have made no effort to speak candidly with this court about their specific efforts to obtain bail,” the filing states.
The Attorney General asks the court to deny President Trump's request for a temporary stay, to expedite the review of the request, to continue monitoring the Trump Organization through monitors, and to ensure that the defendants are fully satisfied with the overall judgment. asked to do.
Trump's lawyers requested a stay pending their appeal of Engoron's ruling, which they filed on Monday.
