Lawyers for New York Attorney General Letitia James argued that Donald Trump and his co-defendants should be required to post a bond to cover the $464 million judgment in their civil fraud case in a court filing Monday.
The attorney general’s office argued that the former president might be unable to satisfy the judgment or could attempt to evade penalties in the absence of a full bond.
“Moreover, there is significant risk that absent a full bond or deposit, defendants will attempt to evade enforcement of the judgment or to make enforcement more difficult after an appeal,” Senior Assistant Solicitor Dennis Fan said in the filing.
New York Attorney General Letitia James speaks during a news briefing, Feb. 16, 2024, in New York. (AP Photo/Bebeto Matthews, File)
Bebeto Matthews/AP
Last month, Trump’s lawyers asked New York’s appellate court for an emergency stay of the enforcement of the $464 million judgment in his civil fraud case. Trump was fined $354.8 million plus approximately $100 million in prejudgment interest after Judge Arthur Engoron determined that he inflated his net worth to get more favorable loan terms.
Rather than post a bond for the total amount, Trump offered to secure a $100 million bond, arguing he would need to sell properties to pay the full amount. However, Judge Anil Singh declined to issue the stay of the penalties, leaving the larger question of Trump’s delay to a full panel of appellate judges.
In a filing Monday, Attorney General James reiterated that Trump should be treated with the same rules as any other defendant.
“To stay enforcement of a set monetary judgment pending appeal, the Legislature has required defendants to post a bond or deposit funds in the full amount of the judgment. That requirement applies to defendant Donald J. Trump and his co-defendants, just as it applies to any other appellant,” the filing said.
The AG’s filing said that Trump has also failed to prove his claim that he would have to sell buildings to pay off the judgment in the case, adding that Trump’s arguments run contrary to his earlier arguments about his wealth.
“First, defendants fail to provide any support for their unsubstantiated claim … that posting a bond or depositing funds is ‘impossible’ absent a sale of properties,” the filing said. “Defendants have never demonstrated that Mr. Trump’s liquid assets—which may fluctuate over time—will be enough to satisfy the full amount of this judgment following appeal.”
The filing also argued that Trump’s overall appeal of Judge Engoron’s ruling would likely fail given the “brazen fraud” in which the defendants engaged.
“Defendants are exceedingly unlikely to succeed on the merits of their appeal. Defendants engaged in brazen fraud and illegality to enrich themselves through the use of Mr. Trump’s false and misleading Statements of Financial Condition,” the filing said.
The former president has denied all wrongdoing in the case and appealed Engoron’s ruling.
Trump faces a deadline later this month to post a bond in the civil fraud case.
Republican presidential candidate former President Donald Trump speaks at a Super Tuesday election night party Tuesday, March 5, 2024, at Mar-a-Lago in Palm Beach, Fla. (AP Photo/Evan Vucci)
Evan Vucci/AP
The former president obtained an appeals bond from the Virginia-based Federal Insurance Company totaling $91,630,000 to cover the $83 million judgment in the E. Jean Carrol case plus interest, according to a court filing from last Friday morning.
Trump requested the financial penalty in the defamation case be stalled while he appealed the case.
New York Attorney General Letitia James is urging former President Donald Trump and his co-defendants to post the full $464 million bond required for a judgment in a lawsuit alleging fraud at the Trump Organization. The lawsuit, filed by the attorney general’s office in August 2021, accuses Trump, his children Ivanka and Donald Jr., and the Trump Organization of misleading investors about the value of their assets.
The judgment, which was issued by a New York state judge in December, requires the defendants to post a bond of $464 million to cover potential damages in the case. The attorney general’s office has argued that the defendants should be required to post the full amount of the bond, rather than the $100 million they have proposed.
In a court filing on Monday, James argued that the defendants have not provided sufficient evidence to support their proposed bond amount, and that they should be required to post the full $464 million. She also raised concerns that the defendants may try to shield their assets from potential judgments in the case.
The lawsuit is just one of several legal challenges facing Trump and his family since he left office in January 2021. The former president is also facing investigations into his finances and business practices by prosecutors in New York and Georgia.
In response to James’ filing, a spokesperson for the Trump Organization called the lawsuit a “political witch hunt” and said that the company would continue to fight the allegations in court.
The outcome of the lawsuit could have significant implications for Trump and his family, as well as for the future of the Trump Organization. If the defendants are required to post the full $464 million bond, it could put a significant strain on their finances and potentially force them to sell off assets to cover the cost.
The case is set to go to trial later this year, and it remains to be seen how the judge will rule on the bond issue. In the meantime, the legal battle between the attorney general’s office and the Trump Organization is likely to continue, with both sides digging in for a protracted fight.
