Donald Trump Posts $175 Million Bond in Civil Fraud Case

Former President Donald Trump has posted a $175 million bond in his New York civil fraud case, ensuring that New York Attorney General Letitia James does not seize any of his assets or bank accounts during his appeal proceedings.

The former president was originally ordered to pay $454 million in damages after New York State Supreme Court Justice Arthur Engoron found him and others associated with The Trump Organization liable of misleading lenders. An appeals court granted Trump's request last week to lower his bond amount to $175 million after the former president's lawyers argued that it was a "practical impossibility" to fulfill the original penalty.

Trump had until Thursday to meet the lowered bond threshold. The $175 million was posted by Knight Specialty Insurance Company, which is based in California.

The Context

Engoron ruled in favor last month of a lawsuit brought against Trump, his two eldest sons, Donald Trump Jr. and Eric Trump, and others associated with The Trump Organization who were accused by James' office of inflating the former president's net worth and value of his properties to obtain better loan and insurance terms. Trump has denied all accusations.

Trump's total penalties, with interest, totaled more than $450 million, though his defense team had pleaded with the appeals court that it was impossible for the former president to post the amount, even after "scouring the market" for an entity that would be willing to post the bond.

What We Know

In providing the bond, Knight has promised to cover the judgment if Trump loses his appeal and fails to pay. Knight's chairman, Don Hankey, told the Associated Press (AP) that both cash and bond were used as collateral to post the appeal bond.

Hankey also told AP in a statement Monday night that he has never met or spoken with Trump, but added, "This is what we do at Knight Insurance, and we're happy to do this for anyone who needs a bond."

Views

In a statement shared with Newsweek on Monday night, Alina Habba, Trump's lead attorney in the case, said that the former president "looks forward to vindicating his rights on appeal and overturning this unjust verdict."

Trump also posted a statement to his Truth Social account, in which he confirmed that he posted the $175 million bond "with the sadly failing and very troubled State of New York." The former president also repeated attacks he has made against James and Engoron, calling the judge "corrupt" and saying that the case "was a fabricated ELECTION INTERFERENCE con job, so bad for New York, where businesses are fleeing & violent crime is flourishing."

James previously stood firm on her lawsuit against the former president after his original bond amount was lowered last week, saying in a statement that Trump was "still facing accountability for his staggering fraud."

"The court has already found that he engaged in years of fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization," James added. "The $464 million judgment—plus interest—against Donald Trump and the other defendants still stands."

Newsweek reached out to James' office via email for additional comment Monday night.

What's Next?

A timeline for Trump's appeal of Engoron's ruling is unclear. The former president has sought to delay his plethora of legal challenges until after the presidential election in November, as Trump is the presumptive GOP nominee.

If Trump wins the appeal, he will recoup the money he has put forth. However, if he loses, he will be ordered to pay James the penalty sum in its entirety, as it swells daily with interest, AP reported.

Update 04/01/24, 11:12 p.m. ET: This article has been updated with additional information and background.