(BrightPress.org) – Donald Trump successfully prevented the New York State attorney general from seizing his assets by posting a $175 million bond in his civil fraud case on Monday, April 1st.
New York Attorney General Letitia James accused Trump of misrepresenting his net worth by over $2 billion for tax and insurance benefits. Judge Arthur Engoron ruled in her favor. An appeals court lowered the bond from the original amount of $464 million last month, giving Trump ten days to secure the funds to prevent James from seizing property to collect the full amount. The $175 million is a “placeholder” that guarantees payment if the original judgment is upheld. If Trump wins his appeal he will not owe anything to the state of New York and any money he has put up will be returned.
The bond was underwritten by Knight Specialty Insurance. Don Hankey, the chairman of the company, told the AP that Trump used a combination of cash and bonds as collateral. Hankey said he has never met or spoken with Trump.
Attorneys for Trump told the appeals court they contacted more than 30 bond companies and none of them would take a combination of cash and real estate as collateral for the original bond amount, insisting on cash and liquid assets. The former president claimed he did not have $464 million in cash, as most of his wealth is tied up in real estate.
Other legal issues have depleted Trump’s cash stores. He recently posted a cash bond of more than $97 million for a case involving writer E. Jean Carroll. In February Trump was ordered to pay over $392,000 in legal fees after he unsuccessfully sued three New York Times reporters over an article written about his family’s wealth and tax practices. The article won a Pulitzer Prize in 2018. A British court also ordered Trump to pay $382,000 in legal fees following another unsuccessful lawsuit.
Trump recently said he wanted to have “some cash available” for his presidential campaign.
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