Donald Trump is facing a financial dilemma as he struggles to secure a bond for a $454 million judgment against him in a New York civil fraud case.
His lawyers revealed that 30 surety companies have declined to provide the bond, pushing Trump towards the risk of having his properties seized.
This judgment, issued by Justice Arthur Engoron on February 16, comes as a result of Trump allegedly overstating property values to deceive lenders and insurers.
In an attempt to prevent the seizure of his assets while appealing the judgment, Trump and two of his adult children, along with other executives from the Trump Organization, have approached these companies through four brokers, but to no avail.
The refusal of these companies to issue a bond means Trump could be personally liable if he loses the appeal and cannot cover the payout.
The legal battle, initiated by New York State Attorney General Letitia James in September 2022, adds to Trump’s existing legal challenges as he aims for a rematch with Joe Biden in the November election.
Trump, adamant about his innocence, has committed to appealing the judgment, which poses a threat to his family’s real estate empire.
He has a 30-day deadline from February 23 to either pay the sum or secure a bond, failing which the state could seize Trump Organization assets to ensure collection of the judgment by March 25.
Amid these challenges, Trump’s legal team has requested a delay in enforcing the judgment, proposing a $100 million bond as sufficient during the appeal process.
However, industry professionals, like Gary Giulietti from Lockton Companies, have indicated that securing a bond for the full amount is impractical, as most sureties are unwilling to issue bonds exceeding $100 million without cash or securities as collateral.
The case against Trump, which followed a three-month trial, revolves around his alleged fraudulent overvaluation of properties including Mar-a-Lago and his Trump Tower penthouse.
Justice Engoron’s decision criticized Trump and his co-defendants for their inability to acknowledge their misconduct.
Meanwhile, Trump continues to navigate other legal issues, including defamation claims and criminal cases related to his political and personal conduct.