Former President Donald Trump has been unable to obtain a bail to secure the $464 million fraud judgment against him, according to his lawyers in a court filing on Monday.
Trump and his firm must deposit a full-amount bail by next week to prevent New York Attorney General Letitia James from collecting while he appeals. They’ve asked an appeals court to intervene in the meanwhile, and they stated Monday that they’ve had no luck obtaining a bail.
“Defendants’ ongoing diligent efforts have proven that a bond in the judgment’s full amount is ‘a practical impossibility,'” said a court statement. “These diligent efforts have included approaching about 30 surety companies through 4 separate brokers.”
Their efforts, which included “countless hours negotiating with one of the largest insurance companies in the world,” demonstrated that “obtaining an appeal bond in the full amount” of the Judgment “is not possible under the circumstances presented,” according to the petition.
The other bond companies “accept hard assets such as real estate as collateral,” but “will only accept cash or cash equivalents (such as marketable securities),” according to the petition. He further stated that those corporations normally “require collateral of approximately 120% of the amount of the judgment” — which would be over $557 million.
“In addition, sureties would likely charge bond premiums of approximately 2 percent per year with two years in advance—an upfront cost over $18 million,” according to the report. Even if Trump’s appeal is successful, the $18 million will not be recoverable.
In all, according to the petition, the “actual amount of cash or cash equivalents required ‘to collateralize the bond and have sufficient capital to run the business and satisfy its other obligations’ approach[es] $1 billion,” according to the filing.
While the lawsuit claims Trump cannot afford the bond, it also asserts that the attorney general does not have to worry about collecting her judgment.
“Defendants’ real estate holdings — including iconic properties like 40 Wall Street, Doral Miami, and Mar-a-Lago, — greatly exceed the amount of the judgment. Such assets are impossible to secrete or dispose of surreptitiously, leaving the plaintiff effectively secured during the pendency of an appeal,” the filing said.
Trump’s lawyers also contended that the $464 million punishment is “grossly disproportional” and referenced their contention throughout the months-long trial that “there are no victims, as there were no damages and no financial losses.”
Last month, Trump’s lawyers requested that the bond amount be cut to $100 million, but Monday’s letter contends that he should not be required to post any bond at all.
James’ office has claimed that Trump should pay up the entire money.
In a related lawsuit in New York federal court, Trump last week posted a $91 million bond to safeguard writer E. Jean Carroll’s $83 million defamation judgment against him, which he is appealing as well.
“In the civil fraud case, which is in New York state court, if Trump can’t post the funds or get a bond, then the judgment would take effect immediately and a sheriff could begin seizing Trump’s assets,” Politico reported.
NOW READ:
China’s Military Industrial Complex is Rolling Out Massive Electric Vehicle Battery Plants In US
