Donald Trump's lawyers told a New York court on Monday that he cannot afford to post a bond covering the full amount of a $454 million civil fraud judgment while he appeals, indicating that his legal losses have put him in a serious cash bind.
Trump's lawyers stated in a court filing that it's not possible for him to obtain an appeal bond in the full amount of the judgment given the circumstances. Trump previously claimed to have over $400 million in cash, but consecutive courtroom defeats have increased his legal debt to over half a billion dollars.
Trump's lawyers, citing rejections from over 30 bond underwriters, requested the state's intermediate appeals court to reverse a previous ruling requiring him to post a bond covering the full amount in order to halt enforcement while he appeals the judgment in New York Attorney General Letitia James' lawsuit.
Trump's financial limitations are becoming evident as he appeals Judge Arthur Engoron’s Feb. 16 ruling that he and his co-defendants deceived banks and insurers over several years by inflating his wealth on financial statements used to secure loans and make deals.
If the appeals court does not intervene, James can move to enforce the judgment starting on March 25. James, a Democrat, has stated that she will attempt to seize some of Trump's assets if he is unable to pay.
Including interest, Trump owes the state $456.8 million, with the amount increasing by nearly $112,000 each day. In total, he and his co-defendants owe $467.3 million. To obtain a bond, they would need to post collateral covering 120% of the judgment, or about $557.5 million, as stated by Trump's lawyers.
Trump claims to be worth several billion dollars, but much of his wealth is tied up in his skyscrapers, golf courses, and other properties. Few underwriters were willing to issue such a large bond, and none would accept Trump’s real estate assets as collateral, instead requiring cash or cash equivalents, such as stocks or bonds.
Trump’s lawyers argued that selling off some of Trump’s properties in a “fire sale” to free up cash would be impractical, as it would lead to massive, unrecoverable losses due to the discounted deals.
Trump's court filings did not mention the potential financial gain from a pending deal to take his social media company, Trump Media & Technology Group, public under the ticker symbol DJT.
A shareholder meeting is set for Friday. If approved, Trump would own at least 58% of shares in the company, which operates his Truth Social platform. Depending on the share price, it could be worth several billion dollars.
Trump is appealing to a full panel of the intermediate appeals court, the Appellate Division of the state’s trial court, to halt the Engoron judgment while he appeals. His lawyers previously suggested a $100 million bond, but Appellate Division Judge Anil C. Singh rejected it after an emergency hearing on Feb. 28. A stay is a legal means of pausing collection of a judgment during an appeal.
In a recent court document, Senior Assistant Solicitor General Dennis Fan urged the entire group of judges to reject the defense's argument of 'trust us.' He argued that without a bond to guarantee the payment, Trump may try to avoid paying later and make the state spend a lot of money to collect the owed money.
A complete bond is needed, Fan wrote, because Trump's lawyers have not shown that Trump's easily accessible money will be enough to pay the full amount of the judgment after the appeal.
Trump's lawyers asked the Appeals Division panel to consider oral arguments and also asked for permission to appeal to the state's highest court, the Court of Appeals, if they lose.
Singh did grant some of Trump's requests, including pausing a three-year ban on him seeking loans from New York banks. In their court filing Monday, Trump's lawyers did not say whether they have tried to get a bank loan to cover the cost of the judgment or get cash for the bond.
Trump appealed on Feb. 26, a few days after Engoron's judgment was made official. His lawyers have asked the Appeals Division to decide whether Engoron made mistakes and whether he abused his power or went beyond what he was allowed to do.
Trump was not required to pay the penalty or post a bond to appeal, and starting the appeal did not automatically stop enforcement of the judgment. Trump would stop enforcement if he were to put up money, assets, or an appeal bond covering what he owes.
Gary Giulietti, an insurance broker friend working with Trump to get an appeal bond, wrote in a document Monday: 'A bond of this size is rarely, if ever, seen. In the uncommon situation that a bond of this size is issued, it is given to the biggest public companies, not to individuals or privately owned businesses.'
Giulietti, who acts as an insurance broker for Trump's company, testified at the civil fraud trial as an expert witness called by Trump's lawyers. In his ruling, Engoron noticed that some of Giulietti's testimony was contradicted by other witnesses, including a different defense expert. He noted that Giulietti's company collected $1.2 million in commissions on its Trump accounts in 2022.
Overall, Trump has over $543 million in personal legal responsibilities from three civil court judgments in the past year. The bonding requirements could add at least $100 million to that total.
In January, a jury ordered Trump to pay $83.3 million to writer E. Jean Carroll for defaming her after she accused him in 2019 of sexually assaulting her in a Manhattan department store in the 1990s. Earlier this month, after his lawyers made similar arguments that he be excused from posting a bond, Trump did secure a $91.6 million bond to cover 110% of the Carroll judgment while he appeals.
Last year, a jury ordered Trump to pay Carroll $5 million in a related trial. In that case, rather than post a bond, Trump put more than $5.5 million in cash in an escrow account while he appeals.
