Former US President Donald Trump has posted a $175 million bond in his New York civil fraud case, a move that allows him to halt the collection of the more than $454 million he owes while he appeals the judgment. This development comes after a New York appeals court recently reduced the bond amount from $454 million to $175 million and gave Trump a 10-day window to make the payment.
The bond serves as a temporary placeholder to guarantee payment if the judgment against Trump is upheld. If the judgment stands, Trump would be required to pay the full amount owed, which continues to accrue interest daily. However, if he wins the appeal, he will not be obligated to pay anything and will receive the bond amount back.
Trump’s lawyer, Alina Habba, stated, “As promised, President Trump has posted a bond. He looks forward to vindicating his rights on appeal and overturning this unjust verdict.”
The legal battle stems from a finding on February 16 that Trump had lied about his wealth while building his real estate empire. The trial focused on how Trump’s assets were valued on financial statements submitted to banks and insurers to secure loans and deals. Trump has consistently denied any wrongdoing, asserting that the statements actually underestimated his fortune and included disclaimers that institutions did not take at face value.
The appeals court’s decision to lower the bond amount was crucial for Trump, as his lawyers had informed the court that over 30 bonding companies were unwilling to accept a mix of cash and real estate as collateral for the original $454 million-plus bond. Most bonding companies typically require collateral covering 120% of the amount owed, and underwriters insisted on only cash, stocks, or other liquid assets.
The company that underwrote the bond for Trump is Knight Specialty Insurance, a part of the Knight Insurance Group. The chairman of Knight Specialty Insurance, Don Hankey, clarified that both cash and bonds were used as collateral for Trump’s appellate bond. Hankey, known for making high-risk, high-interest loans to car buyers with flawed credit histories, mentioned that he has never met or spoken with Trump.
In addition to the New York civil fraud case, Trump has faced other legal battles. He has posted a bond and cash worth over $97 million to cover a judgment related to a lawsuit by writer E. Jean Carroll, who accused him of sexual assault and defamation. Trump has also settled legal fees ordered by courts in cases against The New York Times and a company over the Steele dossier allegations.
Currently, Trump’s financial situation includes a significant stake in his newly public social media company, Trump Media & Technology Group. However, a “lock-up” provision prevents insiders like him from selling their shares for six months. This provision means that although Trump’s stake could potentially be worth billions of dollars, generating cash from it would be a longer-term endeavor.
As the legal battles continue, Trump’s financial decisions and assets remain under scrutiny. The posting of the $175 million bond marks a strategic move to protect his assets while pursuing the appeals process in the New York civil fraud case. The outcome of this case and its implications on Trump’s financial standing will be closely watched in the coming months.
(MEDIA SOURCE)
