Donald Trump has been handed a potential lifeline after an appeals court on Monday reduced the appeal bond in his civil fraud case to $175 million, down from nearly half a billion dollars, while giving him another 10 days to come up with the payment.
Trump had been ordered to pay $355 million, plus interest after Judge Arthur Engoron found he had filed fraudulent financial statements for years which inflated the value of his assets. Engoron found him liable for fraud last fall in a civil lawsuit filed by New York Attorney General Letitia James.
With interest, it came to a total of over $454 million. Trump was planning to appeal the case but needed to pay a $464 billion bond, for himself and $10 million for his sons, Donald Jr. and Eric, by Monday, March 25, 2024, an amount his legal team at one point called a "practical impossibility."
As Trump faced the prospect of having his bank accounts frozen and properties seized, a New York appeals court ruled that the former president now needed only to pay $175 million. The former president responded to the ruling, thanking the Appellate Division and calling Engoron a "disgrace" in a public statement.
Why Does Donald Trump Need a Bond?
Trump was initially given a 30-day deadline, which ended on Monday, March 25, 2024, to either pay the $454 million fine or appeal Engoron's decision.
Trump wants to appeal the order but to do so he needed a bond to show that he will pay even if the appeal is unsuccessful.
He had been seeking a bond of $464 million to cover his fines and the disgorgement for his sons, Eric and Don Jr., who were also his co-defendants. Disgorgement requires a party who profits from illegal or wrongful acts to give up any profits they made as a result of that conduct.
What Happened to the $464 Million Bond?
Trump's legal team previously said paying the original bond amount would be a "practical impossibility." According to a court filing, Trump's team said, "Despite scouring the market we have been unsuccessful in our effort to obtain a bond for the Judgment Amount for Defendants for the simple reason that obtaining an appeal bond for $464 million is a practical impossibility under the circumstances presented."
Eric Trump said on Sunday that the bond size was "simply not commercially available."
"The 30 largest bonding companies in the United States have never seen a bond close to this size for anyone, let alone a private company," Eric wrote.
"Letitia James is hellbent on a political vendetta against my father with zero regard for the lives of thousands of hard-working New Yorkers, who make their living in our buildings."
While Trump indicated on Friday he had "almost five hundred million dollars in cash" available, the new ruling in New York suggests he may no longer need to empty such vast cash reserves.
The Manhattan Appellate court has both reduced the bond and given Trump's team another 10 days to come up with the lowered sum.
What Happens If Trump Can't Get the Bond?
Evidence suggests Trump could post this new bond. Earlier this month, he posted a similarly-sized bond of $94 million in an appeal against the E. Jean Carroll defamation case.
His claims about holding half a billion dollar cash reserves, alongside the greater likelihood of securing a $175 million surety, means he now stands a much better chance of appealing without risking seizure of assets.
The number is still a staggering sum that will sit alongside his other court costs and financial constraints.
Newsweek has contacted media representatives for Donald Trump for comment.
And if Trump loses an appeal, he will still have to pay $454 million.
If Trump cannot supply the bond, he could see his bank accounts frozen and properties seized. Letitia James' office would not immediately begin seizing properties, but would likely take steps to free bank accounts to deliver the cash.
After that, James could seize properties to come up with the cash. James has already filed court filings in Westchester County, where Trump's Seven Springs golf course and Bedminster estate is located, suggesting she is preparing to take control of these assets.
This process isn't simple. James would need to back to a court to get a judge's approval to allow access to Trump's property, and file a lien against Trump's properties, which would prevent the former president from selling off or borrowing against a property without paying the state of New York first.
A court would then appoint someone to sell the property, who would then hand over the money from the sale to New York.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
