NEW YORK – Donald Trump has so far been unable to obtain a bond that would allow him to appeal a US$454 million (S$608 million) judgement against the former US president in a New York civil fraud case without posting the full amount himself, his lawyers said on March 18.
Trump must either find the cash or post a bond to prevent the state’s authorities from seizing his properties while he appeals Justice Arthur Engoron’s Feb 16 decision ordering him and his co-defendants to pay US$464 million in penalties and interest for misstating property values to dupe lenders and insurers.
In a court filing on March 18, Trump’s lawyers urged a mid-level state appeals court to delay enforcement of the judgement, arguing the amount was excessive.
They said the defendants had so far approached 30 surety companies through four separate brokers to obtain a bond.
“Enforcing an impossible bond requirement as a condition of appeal would inflict manifest irreparable injury on defendants,” Trump’s lawyers wrote.
They said posting a full bond is a “practical impossibility” because the amount is so large and could require cash reserves nearing US$1 billion.
The former president would need to hold a “fire sale” of his properties in order to come up with cash to use as collateral for the bond, they added.
The lawyers asked that he instead be allowed to post a US$100 million bond while he appeals the judgement. A bonding company would be on the hook for any payout if Trump loses his appeal and proves unable to pay.
Trump’s lawyers included a statement by Mr Gary Giulietti, an executive with insurance brokerage the Lockton Companies, which Trump has hired to help get a bond.
Mr Giulietti wrote that a bond for the full US$464 million “is not possible under the circumstances presented”, noting that many sureties would not issue bonds above US$100 million and were willing to accept only cash or securities – not real estate – as collateral.
Trump denied wrongdoing in the case, which was brought by New York Attorney-General Letitia James in New York state court in Manhattan.
Trump earlier in March posted a US$91.6 million bond to cover an US$83.3 million defamation verdict for the writer E. Jean Carroll while he appeals, in a case that arose from his branding her a liar after she accused him of raping her decades ago. REUTERS
