Sally Reed
Former President Donald Trump claims he can’t come up with the $464 million bond required to appeal his civil fraud conviction in New York.
After being ordered to pay over $464 million for falsifying business records at his Trump Organization, Trump filed an appeal but now says posting the full bond amount needed to proceed is “a practical impossibility.”
Trump Convicted of Civil Fraud in New York
Since being convicted of civil fraud in February, Donald Trump has claimed that posting the $464 million bond needed to appeal the ruling is “impossible.”
According to court filings, the former president’s lawyers argue that Trump’s assets are primarily illiquid real estate holdings and that raising hundreds of millions in cash would require fire sales of properties at a fraction of their value.
Long-Running Investigation
The civil fraud conviction stems from a years-long investigation by New York Attorney General Letitia James into whether the Trump Organization misstated the values of its real estate properties.
According to the AG’s office, Trump and his company routinely exaggerated the sizes and values of his properties to obtain bank loans and insurance coverage.
Seeking to Avoid Paying Penalty
By appealing the conviction but claiming an inability to post the required bond, Trump appears to be trying to avoid paying the $355 million penalty and interest while still hoping to overturn the ruling.
Legal experts say the appeals court will unlikely waive the bond requirement, meaning Trump’s companies and properties may face additional legal jeopardy if the judgment goes unpaid.
Civil Ruling Separate from Criminal Probe
The civil ruling is separate from the ongoing criminal probe into the Trump Organization conducted by the Manhattan District Attorney’s office.
While Trump has denounced all the investigations into his business practices as politically motivated “witch hunts,” his critics argue that the pattern of fraud and dishonesty revealed in the James investigation alone merits punishment and accountability.
Trump’s Finances in Shambles
Trump’s financial disclosures show that his net worth has declined significantly since taking office. The Trump brand has also taken a major hit, with some properties stripping the Trump name.
Legal troubles plague the Trump Organization on multiple fronts, including a criminal probe by the Manhattan DA into its business practices.
Trump is Seeking Leniency From The Court
Given Trump’s supposed dire financial straits, his lawyers have asked the court to either waive the bond requirement or reduce the amount “to an amount that does not exceed $100 million.”
They argue that Trump will not flee or hide assets to avoid paying the judgment, even if his appeal fails.
The Judge is Yet To Rule On Trump’s Request
The judge has not yet ruled on Trump’s request. Trump’s lawyers say they will ask a higher court to review the issue if denied.
In the meantime, prosecutors have asked the judge to allow them to start collecting the judgment to prevent Trump from hiding or transferring assets to avoid payment.
Previous Attempts to Reduce Bond Were Denied
Trump’s legal team previously asked the court to reduce the bond amount to $100 million, claiming the lower figure would still be more than adequate to cover any costs from the appeal.
However, the request was denied. The judge ruled that Trump failed to prove that posting the full judgment amount would cause “irreparable harm.”
An Unreasonable Bond and An Abuse of Discretion
Trump’s lawyers also claim that the lower court judge showed bias in denying Trump’s previous request to lower the bond amount. They argue that the denial was “an abuse of discretion, ” showing the judge’s “disdain” for Trump.
However, legal experts say it is very unlikely an appeals court would find bias or abuse of discretion based on a judge’s decision to require a standard bond amount.
New York Attorney General Calls Trump’s Bluff
The New York Attorney General’s office, which brought the civil fraud case against Trump, rejects these arguments.
The Attorney General argues that Trump has many options to obtain funding, including taking out loans against his properties or liquidating some assets.
What Happens Next With Trump’s Appeal?
With Trump claiming he can’t pay the required bond to proceed with his appeal, his options are limited. According to legal experts, if Trump can’t post the bond, the appeal won’t proceed, and the ruling against him will stand.
However, Trump may try to get the bond amount reduced, although the chances of a significant reduction are small given the scale of the judgment.
Dropping the Appeal May Be Strategic
Some analysts think Trump may strategically drop the appeal to avoid the scrutiny of a trial, even if it means accepting the hefty penalty.
Trump is no stranger to legal troubles, but a protracted court case over civil fraud could damage his reputation further and hurt his political ambitions.
The Judgment Stands If Appeal Dropped
If Trump drops the appeal, the February ruling and $464 million judgment against him will stand. While a blow to Trump, the judgment is civil rather than criminal, so he won’t face prison time.
However, the New York Attorney General could pursue further legal action to recover the funds, such as placing liens on Trump’s properties.
History Repeating Itself
Given Trump’s history, it’s unsurprising that he claims to lack the means to pay the $464 million bond for his appeal against a fraud conviction in New York.
While the full details of Trump’s current finances remain unknown, his track record of creatively evading debts and defaulting on loans when convenient suggests obtaining such a large sum would be difficult, even if he does have significant assets.
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