Trump wins a partial reprieve from a massive fraud judgment, catching a break from a New York appeals court that allowed him to temporarily post a lower bond amount while he fights the case.
The ruling provided some breathing room for the embattled former president, who otherwise faced the prospect of the state seizing his assets.
Trump Wins Partial Stay of $450M Fraud Judgment
The appeals court’s ruling provided the former president a temporary reprieve. Instead of having to pay the full $450 million judgment against him immediately, Trump now has 10 days to post a bond of $175 million, which is still a significant amount but more manageable.
Trump told reporters he would “put up the cash or a bond very quickly,” though he did not specify where exactly the money would come from.
Legal Troubles Pile Up
The reduced bond does little to alleviate the enormous legal troubles piling up for Trump. In addition to the fraud case, Trump also faces a criminal trial in New York starting April 15 for charges related to hush money payments made to Stormy Daniels.
Trump had sought to delay the start of that trial but was rejected by the judge.
Ruling Provides Relief Amid Mounting Legal Issues
In addition to the civil fraud case, Trump’s legal troubles include two defamation lawsuits from writer E. Jean Carroll, who accuses Trump of rape.
If Carroll prevails, Trump may owe her nearly $90 million. Trump also faces criminal charges for allegedly masterminding a scheme to pay hush money to two women during the 2016 election.
Trump Still Faces Georgia Election Interference Probe
In 2021, the Fulton County district attorney opened a criminal investigation into Trump’s attempts to overturn Georgia’s 2020 election results.
Trump called Georgia’s secretary of state, Brad Raffensperger, and urged him to “find” enough votes to overturn Joe Biden’s victory.
NYAG Civil Fraud Case
New York Attorney General Letitia James accused the Trump Organization of fraudulently misstating asset values to obtain loans and tax benefits.
In February 2022, a judge ruled that Trump must pay $250 million in penalties. Trump has appealed but must post a $175 million bond to delay collections during appeals.
Impact of the Ruling
The ruling was a major blow to Trump, who continues to face mounting legal and financial troubles. Trump immediately vowed to appeal Engoron’s decision, arguing that James’ lawsuit was politically motivated.
However, to stop James from collecting on the judgment, Trump was required to post a bond for the full $450 million amount.
Trump Unsure How He’ll Pay Even the Reduced Bond
Trump’s attorneys were unable to find financial backers to help secure the initial $450 million appeal bond. Even with the reduced $175 million bond, Trump seemed uncertain of how he would pay it.
When reporters asked how he would pay or secure the $175 million bond, Trump replied, “I have a lot of cash”.
Estimating Trump’s Actual Cash and Assets Difficult
Trump claims to have hundreds of millions of dollars in cash and securities, but determining his true net worth is challenging.
His federal financial disclosures list assets worth between $252 million and $924 million, but these forms only provide estimates and broad ranges.
Trump’s Finances Changed After Truth Social Windfall
Trump’s finances have been in flux since the launch of his Truth Social platform. Though he claimed to have hundreds of millions in cash and investments in 2021, recent events have impacted his wealth.
Earlier in 2022, Trump posted a $91 million bond to delay payment in a defamation case, reducing his available funds.
Trump Says He Won’t Accept Foreign Aid for Bond
Trump is in a tough position. His lawyers have said he does not have enough liquid assets to put up the full $450 million appeal bond in cash.
When asked if he would accept foreign government aid to post the bond, Trump said, “I don’t do that.” However, foreign governments spent heavily at Trump’s properties during his presidency.
Banks Outside U.S. Could Finance Trump’s Bond
Major lending institutions beyond America’s borders, specifically in foreign nations, maybe Trump’s only option to obtain the necessary capital required for such an astronomically high bond amount.
Though the president asserted, “I don’t do that”, in response to inquiries regarding accepting help from foreign governments, he did acknowledge that “the biggest banks, frankly, are outside of our country. So you could do that.”
Legal Experts Weigh in on the Significance of Bond Reduction
Legal experts say the appeals court’s decision to reduce Trump’s appeal bond amount could indicate the panel may look favorably upon arguments to reduce or overturn the $464 million judgment against him.
“It’s extraordinary because the law is clear that you have to post a bond in the full amount, and it additionally suggests that there may be a concern that the underlying judgment is itself excessive,” said Adam Pollock, a former New York assistant attorney general.
James Vows to Continue Pursuing Accountability
Although Trump hailed Monday’s ruling as a victory, James asserted the decision does nothing to change the fact that Trump was found guilty of defrauding investors and unlawfully enriching himself.
James vowed her office will continue pursuing the $464 million judgment against Trump and his company.
An Uncertain Road Ahead
While certain parts of Engoron’s ruling will remain in effect, such as the appointment of an independent director of compliance for the Trump Organization, other measures are on hold pending the outcome of Trump’s appeal.
This includes Engoron’s orders barring Trump and his sons from holding leadership positions at New York companies for several years.
