Thirty surety companies have rejected Donald Trump’s bond request to cover a $454 million judgment in a New York civil fraud case, putting him at risk of having his properties seized unless he pays the judgment or finds an alternative solution.
Surety Companies Reject Donald Trump’s Bond Request in Fraud Case
In a significant setback for former President Donald Trump, 30 surety companies have rejected his request for a bond to cover a $454 million judgment in a New York civil fraud case. Trump’s lawyers revealed on Monday that their attempts to secure the bond through four separate brokers had been unsuccessful. With the rejection, Trump faces the possibility of having his properties seized unless he pays the judgment out of his own pocket or finds an alternative solution. This latest development adds to the legal challenges Trump is currently facing as he prepares for a potential rematch with President Joe Biden in the 2024 election.
( Credit to: Reuters )
Background of the Fraud Case
The case, brought by New York state Attorney General Letitia James in September 2022, accuses Trump of misstating property values to deceive lenders and insurers. The judgment, issued by Justice Arthur Engoron on February 16, found Trump guilty and ordered him to pay $454 million. Trump’s adult children and other Trump Organization executives also face judgments totaling $10 million. The former president has denied any wrongdoing and plans to appeal the judgment, which poses a threat to his family’s real estate empire.
Bond Rejection and Implications
The rejection of Trump’s bond request by 30 surety companies has put him in a precarious position. A bonding company would typically be responsible for any payout if Trump loses his appeal and is unable to pay the judgment. However, the inability to secure a bond means that Trump must either pay the sum himself or find an alternative solution to prevent the state from seizing his properties while the appeal is ongoing. Trump’s lawyers have urged a mid-level state appeals court to delay the enforcement of the judgment, arguing that the amount is excessive. They propose that Trump be allowed to post a $100 million bond instead.
Challenges in Obtaining a Bond:
- Gary Giulietti, an executive with insurance brokerage firm Lockton Companies hired by Trump, stated in a court filing that obtaining a bond for the full $454 million is not feasible under the current circumstances.
- Many sureties are reluctant to issue bonds above $100 million and prefer cash or securities as collateral rather than real estate.
- Trump’s lawyers argue that enforcing an impossible bond requirement as a condition of appeal would cause irreparable harm to the defendants.
Ongoing Legal Troubles
The New York civil fraud case is just one of several legal challenges that Trump is currently facing. He recently posted a $91.6 million bond to cover an $83.3 million defamation verdict in a case brought by writer E. Jean Carroll, who accused Trump of rape. Trump has also pleaded not guilty in four criminal cases related to his attempts to overturn the 2020 election results, mishandling of government documents after leaving office, and hush money payments made prior to his 2016 election victory. These legal battles add further complexity to Trump’s potential presidential campaign in 2024.
Conclusion
The rejection of Trump’s bond request in the New York civil fraud case marks a significant setback for the former president. With 30 surety companies refusing to provide the bond, Trump must now find an alternative solution to prevent the state from seizing his properties while his appeal is pending. As he navigates these legal challenges, Trump’s path to a potential rematch with President Joe Biden in the 2024 election becomes increasingly uncertain. The outcome of these cases will undoubtedly have a significant impact on Trump’s political future and his family’s real estate empire.
