A New York appeals court has granted former President Donald Trump a financial reprieve by significantly reducing the bond he must post in a massive civil fraud judgment, temporarily shielding his assets from immediate seizure. The court’s decision slashes the required bond from $454 million to $175 million and provides an additional 10 days to secure it.
The ruling arrives just as New York Attorney General Letitia James was poised to begin the process of collecting on the judgment by potentially seizing Trump’s real estate and bank accounts. This development momentarily halts James’ ability to execute the civil fraud judgment, which originated from accusations of submitting “blatantly false financial data” over the years to enhance Trump’s financial statements and obtain more favorable loan terms.
The former president’s legal team had argued that obtaining an appeal bond for the initial amount was “impossible,” having approached over 30 surety companies without success. The companies reportedly demanded cash or liquid assets as collateral, amounting to nearly $1 billion, a figure that neither Trump nor the Trump Organization could immediately produce in liquid form. The appeals court’s reduction reflects the difficulties Trump faced in securing the bond, as his attorneys claimed that the surety companies would only accept cash or marketable securities, rejecting the use of hard assets such as real estate.
The order by the appellate division panel also stays the trial judge Arthur Engoron’s decision that had barred Trump from serving as an officer or director of a New York company for three years, as well as barring him and the corporate defendants from applying for loans from New York lenders for the same period. Notably, however, the appeals court did not accede to blocking the enforcement of Engoron’s appointment of a financial monitor to oversee the Trump Organization’s finances.
Trump has vehemently criticized the judgment, the trial judge, and Attorney General James, characterizing the legal action as a politically motivated attack, particularly given the backdrop of his 2024 presidential campaign. Despite the financial win, the office of the Attorney General remains unfazed, asserting that the substantial judgment—plus accruing interest—remains in effect against Trump and the other defendants.
Trump, on his part, touted the appeals court decision as a vindication and rebuked Judge Engoron, whom he labeled “a disgrace to this country.” Meanwhile, the former president’s attorney, Alina Habba, hailed the ruling as a significant check on what she described as an unjust verdict and “targeted witch hunt.”
The financial saga unfolds alongside Trump’s criminal legal challenges, including the ongoing hush-money case and other federal inquiries related to his 2016 and 2020 presidential campaigns.
Relevant articles:
– Trump New York fraud bond cut to $175 million in appeal from $454 million
– N.Y. appeals court reduces Trump’s bond in his civil fraud case to $175 million a victory for the former president NBC News, Mon, 25 Mar 2024 15:35:45 GMT
– Trump hasn’t posted $464 million bond in fraud case. Here’s what the New York attorney general could do now. CBS News, Mon, 25 Mar 2024 15:28:00 GMT
– Appeals court lowers Trump’s bond in civil fraud case to $175 million NPR, Mon, 25 Mar 2024 15:58:00 GMT