- Trump posts $175 million bond in New York fraud case
- Previous $454 million bond reduced, pending appeal decision
- Legal battles persist amidst reelection campaign challenges
In his civil fraud case in New York, former President Donald Trump posted a $175 million surety, preventing the seizure of assets that could have severely damaged his finances and reelection prospects.
In February, Trump, who is vying for the presidency with US President Joe Biden, was found guilty of potentially misrepresenting his net worth by $2 billion to obtain more favourable loan and insurance terms.
A previous judge had set a $454 million bond for Trump, his adult sons, and two former Trump Organisation executives. Last week, an appeals court ordered them to pay the sum within ten days, thereby exempting them from making that payment.
Trump’s legal representatives had contended that it took a lot of work to obtain a surety to secure the entire judgment, given that over thirty insurance companies declined to accept his cash and real estate holdings as collateral.
The appeals court’s merits of Trump’s appeal remain to be decided by a three-judge panel.
Trump has denied any misconduct, asserting that he merely grossly underestimated his fortune and that financial institutions did not blindly accept his assessments.
New York Attorney General Letitia James, who filed the lawsuit against the Republican candidate, will be unable to collect $454 million until Trump completes his appeal due to the surety.
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James could have pursued measures to seize Trump’s assets without the bond, such as freezing bank accounts and gathering rent from tenants of his properties.
The $175 million bond was issued by Knight Specialty Insurance Company, headquartered in California.
Instead of a physical money transmission, the bond signifies that the organisation has assured Trump of the cost of the judgment if his appeal is denied and he cannot make the payment.
A delay in executing a judgement is permissible under New York law in the form of a bond guaranteeing payment of the debt.
Trump is confronted with many legal issues as he campaigns for reelection, including four criminal indictments in four distinct jurisdictions.
Regarding the initial case, Trump is slated to appear in court on April 15th to answer charges that he fabricated internal business records to obscure a hush money payment made to pornographic film actress Stormy Daniels before the 2016 presidential election.
