Trump can't secure $454 million appeal bond in New York fraud case, his lawyers said
Former President Donald Trump is struggling to secure an insurance company to underwrite his bond covering the significant judgment against him in the New York attorney general's civil fraud case, his legal team informed a New York appeals court.
Trump's lawyers stated that he has approached 30 underwriters for the bond, which must be secured by the end of this month.
"The judgment amount, including interest, exceeds $464 million, and very few bonding companies are willing to consider a bond of that magnitude," Trump's legal team wrote. (Trump himself was directed to pay $454 million; the $464 million includes the disgorgement for his adult sons Don Jr. and Eric.)
An insurance broker, Gary Giulietti, who testified for Trump during the civil fraud trial, submitted an affidavit stating that obtaining a bond for the full amount "is practically impossible."
Potential underwriters are demanding cash to back the bond, not properties, according to Trump's legal team.
Trump's lawyers have requested the appeals court to postpone the bond's posting until his appeal is concluded, arguing that the value of Trump's properties far exceeds the judgment. If the appeals court rules against him, Trump has asked to delay posting the bond until his appeal to New York's highest court is heard.
Last month, New York Judge Arthur Engoron ordered Trump to pay $355 million in disgorgement, or "ill-gotten gains," in a civil fraud case brought by New York Attorney General Letitia James. Engoron found Trump and his co-defendants, including his adult sons, liable for fraud, conspiracy, and issuing false financial statements and records, stating that they fraudulently inflated the value of Trump's assets to obtain more favorable loan and insurance rates.
With interest included, the amount Trump owes exceeds $450 million.
Trump is appealing the ruling, but to prevent the state from enforcing the judgment, he must post a bond to be held in an account during the appellate process, which could last years.
Earlier this month, Trump posted a $91.6 million bond as part of his appeal in the E. Jean Carroll defamation case.
Giulietti stated that some major underwriters have internal policies limiting them from securing a bond exceeding $100 million. None of these underwriters, he added, including some of the world's largest insurance companies, are willing to accept real estate—they prefer cash or stock.
Giulietti estimated that Trump would need to come up with over $550 million, including fees and interest.
"Throughout my career, during which I have been directly or indirectly involved in issuing thousands of bonds, I have never encountered or witnessed an appeal bond of this size for a private company or individual," Giulietti said. "After significant good-faith efforts over the past few weeks, obtaining an appeal bond for the Judgment Amount of over $464 million is simply not feasible under these circumstances."