Former President Donald Trump has proposed posting a $100 million bond as he appeals a $454 million fraud judgment in New York, which he deems "exorbitant and punitive." The judgment, issued on February 16 by Judge Arthur Engoron, requires Trump and his namesake company to pay the government for ill-gotten gains related to overstating the value of his real estate.
In addition to the financial penalty, the verdict imposes a three-year ban on Trump doing business in New York, including borrowing from banks based in the state. Trump, currently challenging the judgment, is seeking to delay the full payment, citing difficulties in posting the entire amount, Reuters reported.
Trump's lawyers, Clifford Robert and Alina Habba, argue that the "unlawful and unconstitutional blanket prohibition on lending transactions" makes it challenging to secure and post the complete bond. Despite this, they express the intention to secure and post a bond amounting to $100 million.
However, State Attorney General Letitia James opposes Trump's request, asserting that he is unlikely to prevail in his appeal. She contends that a full bond is necessary due to Trump's insufficient cash and the need to raise further capital.
According to USA Today, James argues that the prohibition against future loans is justified given the heart of the case, which revolves around Trump's fraudulent and misleading statements to financial institutions. She contends that a partial undertaking of less than a quarter of the judgment amount, as proposed by Trump, is insufficient to cover the potential shortfalls.
The decision on Trump's bond request will be in the hands of a five-judge panel from the Supreme Court of New York Appellate Division, First Department, according to Mark Zauderer, a senior partner at Dorf Nelson & Zauderer. The panel will review written arguments from both Trump and James and is expected to reach a decision within several weeks.
The panel has the authority to set a bond ranging from zero to the full judgment amount. The case, marked by Judge Engoron's characterization of the fraud as shocking the conscience, also revealed Trump's alleged surreptitious transfer of $40 million from accounts without disclosure.
Furthermore, an independent monitor appointed by Engoron uncovered Trump's attempt to move portions of the Trump Organization operating in New York to Florida. James expresses concerns about the potential for Trump to evade enforcement of the judgment following the appeal, citing a substantial risk based on his actions during the trial.
The civil fraud trial verdict, coupled with an $83.3 million loss in a defamation case to writer E. Jean Carroll, has created a financial strain for Trump, leaving him with debts exceeding half a billion dollars. Trump maintains that the judgment against him is unconstitutional, claiming it stems from a lawsuit unfairly targeting him. During the trial, James recorded Trump habitually exaggerating property values by inflating square footage and potential revenue, while Engoron characterized his lack of remorse as approaching a pathological level.
