As Donald J. Trump takes time to secure nearly $500 million in bail in his civil fraud case, the New York Court of Appeals said Monday it will accept a much smaller bail amount, giving the former president a lifeline. It looks like he gave it to you. $175 million.
The ruling by a five-judge panel of appeals court judges was an unexpected and decisive victory for the former president, potentially averting an impending financial crisis. If the court denies his request and fails to obtain his full bond, Trump would lose control of his own bank accounts and ultimately even some of his most prominent assets. There was fear.
For now, these dire consequences may be put on hold. If Trump obtains a smaller bail amount, a lawsuit accusing him of fraudulently inflating his net worth while he appeals a $454 million judgment imposed by a judge This will prevent the New York State Attorney General's Office from collecting the tax. Disputes can take several months or more to resolve.
Mr. Trump has 10 days to secure the bond, and two people familiar with his finances said he should be able to secure it by then.
Trump said in a statement that he would “comply with the decision” and intend to issue bonds from outside companies or raise the funds himself. He added that the appeals court's decision to reduce bail “shows how ridiculous and outrageous” the $454 million judgment was.
Letitia James, a spokeswoman for the attorney general, said Trump “remains accountable for his extraordinary misconduct” and that the ruling “still stands.”
The appeal bond is a promise from an outside company to cover his judgment if he ultimately cannot pay. To obtain this, Mr. Trump would have to pay a fee to a bond company and pledge a large amount of cash as collateral. Mr. Trump is not required to surrender any collateral for now, but the bond company has the right to repossess it if Mr. Trump defaults on payments.
Trump's lawyers had asked the appeals court to either accept a lower bail amount or suspend the bail request altogether. They said that once the court hears the trial judge's appeal, it will likely vacate the $454 million fine against the trial judge, calling it “grossly disproportionate and unconstitutional.” insisted.
Trial Court Judge Arthur F. Engoron found Trump liable for conspiring to inflate his net worth in order to obtain favorable bank loans and other financial benefits. The $454 million includes interest payments Trump saved by misleading lenders and profits from two recent real estate sales.
Judge Engoron didn't stop there. He also imposed some restrictions on Trump and his family's businesses. For three years, Mr. Trump will not be able to run any New York companies, including some of his own, or receive loans from New York banks. The same restriction applies to his adult son for two years. And he extended the appointment of an independent monitor, a careful outsider, to keep an eye on his family business.
In a surprising move, the Court of Appeals on Monday suspended most of these new restrictions, except for monitors.
Mr. Trump is fighting against all kinds of penalties, but the one he is most concerned about is monetary fines.
Trump was desperate to get full bail until a court granted him a small bond on Monday.
Lawyers say he will have to post large amounts of collateral (about $557 million) to bond companies, including as much cash as possible, as well as stocks and bonds that can be sold quickly. It is said that He also would have paid fees to bond companies that could reach nearly $20 million.
In a recent court filing, Trump's lawyers reveal that Trump was unable to secure the full amount of his bond despite “intense efforts,” including approaching more than 30 bond companies. I made it. They called it “practically impossible.”
The problem was simple. Much of Mr. Trump's wealth is tied to the value of real estate, which bond companies rarely accept as collateral. Trump has more than $350 million in cash, stocks and bonds, a far cry from the $557 million he was required to post as collateral, according to a recent New York Times analysis. Ta.
But he recently had enough collateral to post $91.6 million bail in the defamation suit he lost against E. Jean Carroll, and now has $175 million bail in the case filed by Ms. James. It appears he has enough collateral to secure $100,000 bail.
Still, that would eat up much of his stockpile of cash and other liquid investments. As long as Trump has to pledge the money as collateral for the bond, he can't use it to fund his business.
