Donald Trump sets bail at $175 million in New York fraud case

new york –

Donald Trump posted $175 million bail in his New York civil fraud case on Monday, halting recovery of more than $454 million he is owed and pending appeal, according to court filings. It also prevented the state from seizing assets to pay off debts. .

The New York Court of Appeals had given the former president 10 days to pay the money after a panel of judges last month agreed to reduce the amount needed to halt the execution.

The bond that President Trump currently has filed with the court is essentially a playholder, intended to guarantee payment if the verdict is upheld. If that happens, the Republican presidential candidate would have to pay the state the full amount of interest that increases each day.

If Trump wins, states won’t have to pay anything and the money they’ve put in will be returned to them.

Alina Haba, one of Trump’s lawyers, said: “As promised, President Trump has posted bond. President Trump looks forward to vindicating his rights on appeal and overturning this unjust ruling.” Told.

Until the appeals court intervened to reduce the required bail, New York Attorney General Letitia James was poised to begin efforts to recover the judgment, possibly including seizing some of President Trump’s famous properties. James, a Democrat, filed the lawsuit on behalf of the state. Her office declined to comment Monday.

The court’s decision comes after Trump’s lawyers argued that it would be “practically impossible” to get underwriters to accept the $454 million plus interest bond he owed. I put it down.

The company that underwrote the bonds is Knight Specialty Insurance, a member of the Knight Insurance Group. The company’s chairman, billionaire Don Hankey, told The Associated Press that both cash and bonds were used as collateral for Trump’s appeal bond.

“This is what we do at Knight Insurance, and we’re happy to do this for anyone who needs a deposit,” says the business world by providing high-risk, high-interest loans to car buyers. said Mr. Hankey, who is best known for. Defects in credit history. Mr. Hankey told The Associated Press that he has never met or spoken to Mr. Trump.

Former US President Donald Trump speaks at a press conference in New York on March 25, 2024. (AP Photo/Frank Franklin II)

Trump is fighting to overturn a judge’s Feb. 16 ruling that he lied about his wealth while cultivating the real estate empire that propelled him to stardom and the presidency. The trial focused on how Trump’s assets were valued on financial statements submitted to banks and insurance companies for loans and transactions.

Mr. Trump has denied any wrongdoing, saying the statements actually disrespected his fortune, came with a disclaimer, and were not taken at face value by the institutions that loaned him or provided insurance. Stated.

The state court’s Appellate Division announced it would hear arguments in September. A specific date has not been decided. If all goes according to schedule, it will fall in the final week of the presidential election.

Under New York law, appeals generally do not delay execution of a judgment. However, if that person or entity obtains a bond guaranteeing payment of the amount owed, an automatic suspension, or “stay” in legal parlance, occurs.

Sometimes, as in Trump’s case, courts will grant exceptions and reduce the amount required to stay.

Trump’s lawyers told the appeals court that more than 30 bond companies were reluctant to accept a combination of cash and real estate as collateral for bonds worth more than $454 million. Lawyers said the underwriters asked only for cash, stock and other liquid assets.

They say most bond companies require collateral to cover 120% of the debt amount.

President Trump recently claimed he had nearly $500 million in cash, along with billions of dollars worth of real estate and other assets, but said he wanted to preserve some cash for his presidential campaign.

Recent legal debt has taken a significant chunk out of President Trump’s cash reserves.

In addition to the US$175 million he had to submit in the New York case, President Trump also paid the equivalent of more than US$97 million to cover his debt to author E. Jean Carroll while he appeals the second-instance ruling. Bail and cash were posted. Federal civil trial. A jury found he sexually assaulted her in the 1990s and defamed her when he went public with her allegations in 2019, but he denies all allegations. .

In February, Trump lost a lawsuit against The New York Times and three reporters over a 2018 Pulitzer Prize-winning story about his family’s wealth and tax practices, after a judge ordered him to interview the Times and three reporters. Paid $392,638.

In March, a British court ordered President Trump to pay 300,000 pounds (approximately $382,000) in legal costs to companies that lost their lawsuits over the so-called Steele dossier, which contained salacious allegations about him. Ta. President Trump has said those claims are false.

Mr. Trump may eventually generate cash by selling some of his roughly 60% stake in the newly public social media company Trump Media & Technology Group, but that could be a long-term strategy. It will be. Trump’s stock could be worth billions of dollars, but a “lockup” clause prevents insiders like Trump from selling it for six months.