A New York court on Wednesday rejected Donald Trump’s bid to halt the ruling in his civil fraud case. This decision currently obliges the ex-president to provide a bond worth hundreds of millions of dollars soon. Judge Anil Singh did not specify the bond amount, essentially mandating Trump to post a bond for the entire $454 million judgment.
The judgment, which stems from accusations of fraudulent business activity over a decade, has raised questions about Trump’s financial liquidity and his ability to satisfy the court’s demands without liquidating assets. Defense attorneys, representing Trump, argued that the amount of the judgment is “unprecedented and punitive,” noting the challenges in securing a bond without resorting to selling properties. Despite their efforts, the judge did not grant a stay for a lower bond amount but did agree to pause the enforcement of sanctions barring Trump and his sons from running their family business.
“In the absence of a stay on the terms herein outlined, properties would likely need to be sold to raise capital under exigent circumstances, and there would be no way to recover any property sold following a successful appeal and no means to recover the resulting financial losses from the Attorney General,” defense attorneys argued.
Judge Singh agreed to temporarily halt the enforcement of the ruling that barred Trump and his sons from managing their family business for the next few years. This decision allows Donald Trump Jr. and Eric Trump to continue leading the Trump Organization for now.
Singh’s decision allows Trump to apply for a loan to post a bond. James opposed a stay in a separate filing on Wednesday, deeming it “especially inappropriate” as the defendants essentially admit that Trump lacks sufficient liquid assets to fulfill the judgment.
“These are precisely the circumstances for which a full bond or deposit is necessary, where defendants’ approach would leave (the attorney general’s office) with substantial shortfalls once this court affirms the judgment,” James wrote.
Both sides are expected to submit more written arguments in the coming weeks, and a decision could come after March 18.
James also expressed concerns about the “significant risk” of Trump potentially evading payment or transferring assets out of reach in case he loses the appeal. She pointed out that the defendants had covertly hidden a $40 million transfer from the monitor, and highlighted Trump’s recent announcement about relocating some of his businesses to Florida.
In their court filing early Wednesday, Trump’s lawyers argued that the penalties are “unprecedented and punitive.”
“The exorbitant and punitive amount of the Judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond,” defense lawyers wrote in the filing. “Appellants nonetheless plan to secure and post a bond in the amount of $100 million.”
In the filing, Trump’s attorneys mentioned that posting a bond to cover the entire judgment would be both unfeasible and redundant due to existing oversight by the Trump Organization’s independent monitor. The filing stated that the ongoing oversight, along with the $100 million bond, guarantees that New York Attorney General Letitia James could enforce the judgment if necessary.
Engoron issued a penalty of $354.9 million against Trump, along with daily interest that started accruing in 2019. As of February 22, the total amount owed had increased to $454.2 million with interest, and additional interest continues to accumulate each day.
Trump, who is the Republican presidential front-runner, now has limited time to secure a bond or pay the penalty. His options include further legal appeals, which he is set to pursue, with the next step being a panel of judges at New York’s Appellate Division, First Department, followed by the state’s Court of Appeals if necessary.
Meanwhile, the New York Attorney General has stated that she is ready to take decisive action if Trump fails to comply with the court’s requirements. “If he lacks the funds to settle the judgment, we will pursue enforcement measures in court and request the judge to seize his assets,” James informed ABC News.
Relevant articles:
– Trump cannot line up fullbond in New York fraudcase, offers to post $100 mln
– Court denies Trump’s bid to freeze $464M judgment, after his lawyers say he’d have to sell properties to pay, ABC News, Wed, 28 Feb 2024 21:45:00 GMT
– Judge declines to pause Trump’s $454 million fraud penalty, but halts some sanctions, CBS News, Wed, 28 Feb 2024 21:06:36 GMT
– Donald Trump can’t post full bond in New York fraud case, offers US$100 million, South China Morning Post, Wed, 28 Feb 2024 22:06:57 GMT