Lawyers for Donald Trump said on Monday he could not post a bond covering the full amount of the $454m civil fraud judgment against him while he appeals the New York ruling, because to do so was “a practical impossibility” after 30 surety companies turned him down.
In a court filing seeking a stay on the payment, which is due on 25 March, lawyers for the former president and this fall’s presumptive Republican presidential nominee quoted Gary Giulietti, an executive with the insurance brokerage Lockton Companies, which Trump hired to help get a bond.
The filing said: “Defendants’ ongoing diligent efforts have proven that a bond in the judgment’s full amount is ‘a practical impossibility’.”
In an affidavit, Giulietti said few bonding companies would consider issuing a bond of the size required. The bonding companies that might issue such a huge bond would not “accept hard assets such as real estate as collateral” but “will only accept cash or cash equivalents (such as marketable securities)”, Giulietti wrote.
“A bond of this size is rarely if ever seen. In the unusual circumstance that a bond of this size is issued, it is provided to the largest public companies in the world, not to individuals or privately held businesses.”
Trump maintains he is worth several billion dollars and testified last year that he had about $400m in cash, in addition to properties and other investments.
In January, a jury ordered Trump to pay $83.3m – on top of $5m awarded by a jury last year – to the writer E Jean Carroll, for defaming her after she accused him of sexual assault in a Manhattan department store in the mid-1990s, a claim a judge called “substantially true”. Trump posted a bond for that amount as he appeals.
The civil fraud case against Trump was brought by the New York attorney general, Letitia James.
Trump also faces an unprecedented slate of criminal charges: 14 for subversion of the 2020 election that he lost to Joe Biden, 34 over hush-money payments and 40 regarding his retention of classified documents.
Nonetheless, the 77-year-old dominated the Republican presidential primary and is poised to face Biden at the polls again in November, even as his legal problems deepen.
In the New York civil fraud case, the judge, Arthur Engoron, ruled in February that Trump, his company and top executives – including his sons Eric Trump and Donald Trump Jr – schemed for years to deceive banks and insurers by inflating financial statements used to secure loans and make deals.
Among other penalties, Engoron put strict limitations on the ability of the Trump Organization to do business.
James, a Democrat, has said she will seek to seize assets if Trump is unable to pay the judgment.
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With interest, Trump and co-defendants including his company and top executives owe $467.3m. To obtain a bond, Trump lawyers said, they would be required to post collateral worth $557m.
“A bond requirement of this enormous magnitude – effectively requiring cash reserves approaching $1bn – is unprecedented for a private company,” the Monday filing said.
“Even when it comes to publicly traded companies, courts routinely waive or reduce the bond amount. Enforcing an impossible bond requirement as a condition of appeal would inflict manifest irreparable injury.”
In February, a state appeals court judge ruled that Trump must post a bond covering the full amount to pause enforcement of the judgment. Trump is asking a full panel of the state’s intermediate appellate court to stay that judgment while he appeals. His lawyers previously proposed a $100m bond – an offer rejected by an appeals court judge, Anil Singh.
Trump first appealed on 26 February, his lawyers asking the court to decide if Engoron “committed errors of law and/or fact” and if he abused his discretion or “acted in excess” of his jurisdiction.
Trump was not required to pay his penalty or post a bond in order to appeal. Filing the appeal did not automatically halt enforcement of the judgment. Trump would receive an automatic stay if he were to put up money, assets or an appeal bond covering what he owes.
The Associated Press contributed reporting
Source: US Politics - theguardian.com
