Donald Trump has failed in an attempt to post a $100 million bond instead of the full half-billion amount he was fined for in a New York civil fraud trial as he tries to appeal the ruling.
Fine ‘Too High’
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Trump’s legal team wrote in a filing to New York appellate division Judge Anil Singh that the total sum their client had been fined was too large to pay, or try to get a bond for, coupled with restrictions in the original order preventing Trump from applying for financing.
‘Impossible to Secure Complete Bond’
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They said that “[t]he exorbitant and punitive amount of the judgment coupled with an unlawful and unconstitutional blanket prohibition on lending transactions would make it impossible to secure and post a complete bond.”
New York Attorney General’s Argument
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The New York Attorney General’s Office, which brought the fraud charges against Trump, urged Judge Singh not to grant Trump’s lawyers request, saying “[t]here is no merit to defendants’ contention that a full bond or deposit is unnecessary because they are willing to post a partial undertaking of less than a quarter of the judgment amount.”
Trump’s ‘Insufficient Liquid Assets’
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The office added: “Defendants all but concede that Mr. Trump has insufficient liquid assets to satisfy the judgment: defendants would need ‘to raise capital’ to do so. These are precisely the circumstances for which a full bond or deposit is necessary. A prevailing plaintiff is entitled to have her award secured, and defendants have never demonstrated that Mr Trump’s liquid assets could satisfy the full amount of the judgment.”
Rejected Request
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Singh rejected the lawyers’ request, saying they must pay or post bond for the full half-billion amount, but he ruled that Trump could apply for financing in the form of loans.
Trump’s Cash Crunch
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Trump’s difficulty, say legal analysts, is that in appealing the original verdict, under the law in New York, where the case was heard, a financial penalty must be paid to an appellate court upon appeal. The court then holds the money in escrow until a decision is made, paying the sum to the winner. Trump says he has around $400 million in cash, even though he is estimated, by Forbes magazine, to be worth in the region of $2.6 billion. Most of that capital is tied up in real estate holdings, however.
The Fraud Trial
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The former President, 77, who is the leading Republican candidate for its nomination for this year’s presidential election, was found guilty along with adult sons Donald Jr and Eric of years of fraud at their Trump Organization real estate firm. Judge Engoron ruled in early February that they lied about the value of their assets to get cheap loans and insurance. He appointed a monitor to oversee the business, revoked some of its licenses, imposed a fine of $354 million and banned them from doing business in New York for three years.
A Growing Fine
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But the enormous fine rises even further when backdated interest of $100 million is added. And for every day that Trump fails to pay the financial penalty since Engoron signed his order last week, he is charged an extra $112,000.
Another Big Fine
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But Trump is in even worse financial trouble, legal observers say, given that he has another massive fine to pay, at least on appeal. That amount is $83.3 million, after a jury in New York decided in January that Trump was guilty of defaming author E. Jean Carroll, who last year won $5 million from Trump after he was found guilty of sexual assault against her.
‘Seize Assets’ Threat
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New York Attorney General Letitia James said in an interview with ABC News last week that she would ask the courts to seize Trump’s assets if he refuses to pay the fine. She said: “If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets.”
Engoron Hazardous Substance Scare
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Staff at Judge Engoron’s court, in Manhattan, raised the alarm on Wednesday when they opened a letter addressed to him and found white powder. Initial tests revealed it was “negative for hazardous substances,” a court official said.
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The post Appeals Court Denies Trump’s Bid to Post $100M Bond Instead of Shelling out Full Half Billion appeared first on Fine-Tuned Finances.
