Donald Trump has been reduced from an appeal bond in his civil fraud case to $175 million, down from nearly half a billion dollars, and given him another 10 days to pay. The court found Trump had filed fraudulent financial statements for years, inflated the value of his assets. With interest, the total amount was over $454 million.
Trump was planning to appeal the case but needed to pay a $464 billion bond for himself and $10 million for his sons, Donald Jr. and Eric, by March 25, 2024. The New York appeals court ruled that Trump now only needs to pay $175 million, giving him a potential lifeline. Trump thanked the Appellate Division and called Engoron a “disgrace” in a public statement.
Why Does Donald Trump Need a Bond?
Trump has been given a 30-day deadline to pay a $454 million fine or appeal Engoron’s decision. To do so, he needs a $464 million bond to cover his fines and disgorgement for his sons, Eric and Don Jr., who were co-defendants. Trump’s bond is required to show he will pay even if the appeal is unsuccessful. Disgorgement requires a party profiting from illegal or wrongful acts to give up any profits.
What Happened to the $464 Million Bond?
Trump’s legal team has been unsuccessful in obtaining a $464 million appeal bond for the Judgment Amount for Defendants due to the practical impossibility of obtaining an appeal bond for the original bond amount. Eric Trump stated that the bond size was “simply not commercially available” and that the 30 largest bonding companies in the United States have never seen a bond close to this size for anyone, let alone a private company.
Trump indicated on Friday that he had “almost five hundred million dollars in cash” available, but the new ruling in New York suggests he may no longer need to empty such vast cash reserves. The Manhattan Appellate court has both reduced the bond and given Trump’s team another 10 days to come up with the lowered sum.
What Happens If Trump Can’t Get the Bond?
Donald Trump could post a new $94 million bond in an appeal against the E. Jean Carroll defamation case, based on his claims of holding half a billion dollar cash reserves and the likelihood of securing a $175 million surety. This gives him a better chance of appealing without risking asset seizure.
However, if Trump loses an appeal, he will still have to pay $454 million. If he cannot supply the bond, his bank accounts and properties could be frozen and seized. Letitia James’ office would likely free bank accounts to deliver the cash, and then seize properties to come up with the cash. James has already filed court filings in Westchester County, where Trump’s Seven Springs golf course and Bedminster estate are located.