Former President Donald Trump‘s appeal against a nearly half-billion dollar fraud judgment has been challenged by the New York attorney-general. The appeal was based on Trump’s claim of it being a “practical impossibility” to post a bond.
What Happened: The New York attorney-general’s office, represented by lawyer Dennis Fan, dismissed Trump’s pleas for an extension to post a bond saying it was based on a “false premise” based on the posting of a single bond. Fan suggested that Trump could secure a series of smaller bonds or use his real estate assets to back a surety bond, reported Financial Times.
Last month, a New York judge ordered Trump to pay $464 million, including interest, for fraudulently inflating the value of his properties. The attorney-general, Letitia James, has threatened to seize Trump’s assets if he does not comply by Monday.
Trump’s lawyers have approached 30 large insurers to underwrite the bond, but none were willing to accept real estate as collateral. They instead demanded cash or liquid securities, making posting the bond a “practical impossibility,” according to Trump’s team.
Trump’s financial state remains unclear. Last year, he claimed to have “substantially in excess of $400 million in cash”. He has since posted a $92 million surety bond for a separate legal judgment.
Why It Matters: This development follows Trump’s earlier consideration of a property ‘fire sale’ to cover the bond. Trump had voiced his disapproval of the judge’s ruling, stating he might be forced to mortgage or sell his assets, potentially at low prices.
Earlier, Trump’s efforts to secure a bond faced a major setback when 30 surety companies declined his request, increasing the likelihood of his properties being seized. The judgment ruled that Trump inflated the value of his assets to mislead lenders and insurers.
The potential seizure of Trump’s assets has sparked debate, with figures like Kevin O’Leary suggesting that such a move would not be good for business in New York or America.
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