Donald J. Trump's lawyer said Monday that he was unable to secure nearly $500 million in bail in his New York civil fraud case, calling it “practically impossible” to do so. he claimed.
The filing, made a week before the bonds were due, raised expectations that the former president could face financial crisis if the appeals court does not provide relief. If the court refuses, the consequences could be dire. The New York attorney general's office, which filed the civil fraud case, may move to seize some of Trump's assets.
In the face of this threat, Trump asked an appeals court to suspend the $454 million judgment a New York judge imposed on Trump in the case last month, or accept bail of only $100 million. I asked.
Lawyers for the former president said in a court filing Monday that despite “diligent efforts,” the former president was unable to secure the full bond. That effort included approaching about 30 companies offering appeal bonds, but he still faced “insurmountable challenges,” his lawyers said.
The companies are essentially pledging to compensate Trump for his judgment if he loses his appeal and fails to pay.
They seem hesitant about important issues. The idea is that Trump doesn't have enough liquidity to obtain the bonds. To issue a bond of this size, a company would require Mr. Trump to pledge more than $550 million in cash, stock and bonds, an amount Mr. Trump does not have at all. .
Although the former president boasts large amounts of wealth, his net worth is derived primarily from the value of real estate, which bond companies rarely accept as collateral. Trump has more than $350 million in cash, far less than he needs, according to a recent New York Times analysis.
Judge Arthur F. Engoron in the civil fraud case concluded that Mr. Trump had fraudulently inflated his net worth to obtain favorable loans and other benefits, and imposed penalties, including a $454 million fine. The lawsuit, filed by New York Attorney General Letitia James, poses a significant financial threat to Trump.
To stop James from foreclosing his assets on March 25, he may have to post an even more valuable appellate bond, perhaps more than $500 million, to reflect the interest he owes.
According to the law, Ms. James could have moved to collect from Mr. Trump as soon as Judge Engoron's ruling was handed down, but she offered a 30-day grace period until March 25th. It's unclear whether she will give Trump her additional time or a reprieve. I hope she moves quickly to collect it. It is also unclear whether the appeals court will rule on his plea for help by the deadline.
Trump could appeal to the New York Supreme Court, and it's unclear whether James will put the foreclosure on hold while he pursues that avenue.
A spokeswoman for Ms. James did not respond to a request for comment.
The looming deadline could not come at a worse time for Trump. Just last week, he finally posted $91.6 million in bail in a defamation case he recently lost against author E. Jean Carroll, but the high-stakes deal depleted precious cash. .
Mr. Trump obtained the bonds from insurance giant Chubb and pledged his Charles Schwab investment account as collateral, records show. He likely pledged more than $100 million in cash, stocks and bonds that could be sold quickly, but these investments are now unavailable as collateral in civil fraud cases.
Trump's lawyers wrote Monday that the nearly $500 million in bonds is “unprecedented for a private company.”
