CNN
—
Former President Donald Trump has been unable to find an insurance company willing to underwrite the bond to cover the huge judgment against him in the New York Attorney General's civil fraud case, his lawyer told the New York Court of Appeals. Ta.
Trump's lawyers said he has approached 30 underwriters to support the bond, which expires by the end of this month.
“The judgment amount exceeds $464 million, including interest, and few bond companies would consider a bond amount approaching this amount,” Trump's lawyers wrote. (Mr. Trump himself was ordered to pay $454 million, which also includes disgorgement costs for his adult sons Don Jr. and Eric.)
Insurance broker Gary Giulietti, who testified for Trump in the civil fraud trial, signed an affidavit saying it would be “practically impossible” to secure the full bond.
Trump's lawyers say potential underwriters are seeking cash, not real estate, to back the bonds.
Trump's lawyers asked the appeals court to delay posting bond until after his appeal, arguing that the value of his estate far exceeds the judgment. If the appeals court rules against him, Trump asked the court to delay posting his bond until his appeal to the New York Supreme Court is heard.
President Trump said Monday that he believes it is “virtually impossible” to post bail.
In a post on Truth Social, he said the size of the bond is “unconstitutional, un-American, unprecedented, and virtually impossible for any company, including successful ones like mine.” he claimed. Bonding companies have never heard of bonds of this size and do not have the ability to issue such bonds even if they wanted to. ”
Last month, Trump was ordered by New York Judge Arthur Engoron to pay $355 million in disgorgement in a civil fraud case brought by New York Attorney General Letitia James. In his 93-page judgment, Mr. Engoron said Mr. Trump and his co-defendants, including his adult sons, were responsible for fraud, collusion, and the issuance of false financial statements and false business records that the defendants obtained. It was determined that the value of Mr. Trump's assets had been fraudulently inflated in order to do so. More favorable loan and insurance rates.
Trump's debt totals more than $450 million, including interest.
President Trump is appealing the ruling, but in order to prevent states from enforcing the ruling, he would have to post bail in his account until the appeal process is complete, and the lawsuit involves several lawsuits. It could take years.
Trump posted $91.6 million bail earlier this month as part of his appeal of the E. Jean Carroll defamation lawsuit.
But Giulietti said some large underwriters have internal policies that limit them from securing bonds over $100 million. He said no companies, including some of the world's largest insurance companies, are willing to accept real estate, only cash or stock.
Including fees and interest, Trump said he would need to come up with more than $550 million.
“In my career, which has involved me directly and indirectly in thousands of bond issuances, I have never heard of or seen a private company or individual issue a bond of this size,” Giulietti said. There was nothing,” he said. “After much good faith effort over the past several weeks, it is simply not possible under these circumstances to obtain an appeal bond for a judgment amount in excess of $464 million.”
Alan Garten, the Trump Organization's chief legal officer, said in a sworn statement that Chubb, which underwrote President Trump's $91.6 million bail to cover the Carroll decision, was responsible for securing civil fraud bail. said that he could not receive the real estate.
Garten said the lack of underwriters willing to underwrite properties is a “major hurdle” to securing bonds.
Trump campaign spokesman Stephen Chan decried the magnitude of the fraudulent verdict.
“A bond of this magnitude is an abuse of law, violates the fundamental principles of our country, and fundamentally undermines the rule of law in New York,” Chan said. “President Trump will continue to fight and defeat these Crooked Joe Biden-led hoaxes and make America great again.”
Correction: This article has been updated to correctly spell the name of President Trump's insurance broker, Gary Giulietti. Also updated to include additional details and background information.
CNN's Kate Sullivan contributed to this report.
