Former US President Donald Trump speaks as he arrives at a Manhattan courthouse for the trial of himself, his adult sons, the Trump Organization and others in a civil fraud trial brought by Attorney General Letitia James in October in New York City, USA , initiated on 2nd 2023.
Brendan Mcdermid | Reuters
Former President Donald Trump has not proven he has enough cash to pay the full amount of a $464 million civil fraud judgment if he loses his appeal, New York’s top legal official warned in a court filing Monday night .
New York Attorney General Letitia James expressed these concerns when she argued that Trump and his co-defendants should be required to post cash or bonds to cover the entire fraud verdict if they want to delay the due date while they appeal the verdict .
“Defendants have never demonstrated that Mr. Trump’s liquid assets – which may fluctuate over time – will be sufficient to satisfy the full amount of this judgment upon appeal,” James told a New York appeals court.
Trump’s real estate holdings could also decline in value if the appeal drags on and interest continues to rise after the verdict, she wrote.
His finances could be further strained by his other civil and criminal disputes, James added, including a jury verdict in January that ordered him to pay $83.3 million in damages for defaming writer E. Jean Carroll.
Trump “has significant liabilities that could further reduce his liquid assets, including other outstanding monetary judgments against him, and he faces multiple criminal charges,” she wrote, referring to that judgment.
Without a full bond, the civil fraud defendants — Trump, his two adult sons, his company and his top executives — could also seek to “evacuate” or strengthen enforcement of the judgment if they lose the appeal, James warned.
She asked the appeals court to reject Trump’s attempt to stay the sentence with bail set at $100 million, less than a quarter of the total awarded by Manhattan Supreme Court Justice Arthur Engoron.
Trump’s lawyers did not immediately respond to CNBC’s request for comment on James’ filing.
Defense attorneys had argued that the lower bail amount was enough to secure the verdict, coupled with continued monitoring of the Trump Organization’s assets by a court-appointed financial monitor.
New York Attorney General Letitia James sits in the courtroom during the civil fraud trial of former President Donald Trump and his children in the New York State Supreme Court on November 3, 2023 in New York City.
David Sanders | Getty Images
They claimed that it would be “impossible” for them to receive a full appeal bond, which could be set at 120% of the verdict – more than $550 million – because that verdict also barred Trump from making loans in New York apply for.
James disputed that claim, writing that the defendants “provided no information about what steps (if any) they took to obtain a commitment before submitting their application.”
They have not yet proven that Trump – a self-confessed multibillionaire who said in a deposition last year that he had more than $400 million in cash – had unsuccessfully tried to get bail, she noted. The ban on borrowing is also not an obstacle because appellate covenants are not loans, she wrote.
Appeal bonds are designed to ensure that the person who was awarded damages at trial can claim that money if the verdict is upheld on appeal. The person who posts the deposit will receive their deposit back if they prevail on appeal.
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Judge Anil Singh of the New York Court of Appeals on February 28 rejected the $100 million bond proposal, but allowed the defendants to continue doing business in New York and lifted the ban on taking out loans.
This interim decision takes effect before a full appeals court panel considers the matter next week.
Meanwhile, Trump posted $91.6 million in bail on Friday as he appealed a federal civil jury verdict that found him responsible for defaming Carroll after she accused him of killing her in the mid-1990s to have raped.
This was the second jury that ordered Trump to pay Carroll defamation damages. The presumptive Republican presidential nominee continued to attack Carroll, prompting her lawyers to suggest they might file another defamation lawsuit.
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2024-03-12 17:30:31
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