(BrightPress.org) – Donald Trump has until Monday, March 25th to post a $454 million bond in his civil fraud case. Manhattan Supreme Court Justice Arthur Engoron ordered the judgment against Trump in February following a three-month trial in which New York Attorney General Letitia James argued Trump’s net worth had been exaggerated on financial statements by billions per year so Trump could obtain lower rates on loans and better insurance terms.
Trump intends to appeal Engoron’s decision, but is required to either post the full bond or place the full amount in escrow to show the money is there should he lose the appeal. According to Kevin J O’Brien a defense attorney in New York, this is “standard procedure” when trying to appeal a financial penalty. To obtain a bond of this amount, Trump would need to pledge around $557 million in collateral to a bond company. He would also need as much cash as possible and any stocks and bonds that could be quickly liquidated. The bond company would most likely charge a fee of close to $20 million.
According to a recent New York Times analysis Trump had just over $350 million in cash, stocks, and bonds leaving him short of the required bond amount. Trump’s attorneys said on Monday, March 18th, they had contacted 30 bond companies and none were willing to make a deal. Most of Trump’s wealth is in his real estate holdings and not liquid assets which according to Gary Giulietti, an insurance broker makes obtaining an appeal bond for this amount “a practical impossibility.”
If Trump can’t post the bond by the deadline, and no compromise is reached, James would be free to begin collections. She could freeze Trump’s bank accounts or try to seize properties involved in the case such as Trump Tower and 40 Wall Street by placing a lien on the buildings. James would not be authorized to seize any properties unrelated to the case.
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