Fri. Apr 12th, 2024

Trump’s bond in his civil fraud case reduced to $175 million by N.Y. appeals court

By 37ci3 Mar25,2024

A state appeals court has ruled that Donald Trump and his co-defendants in a New York civil fraud case have 10 days to post a $175 million bond, down from a $464 million judgment set for Monday.

The 11th-hour decision by a panel of state Appellate Division judges, all appointed by Democratic governors, is a major victory and relief for the former president, whose lawyers said it was “practically impossible” to come up with a higher bond. The ruling also means state Attorney General Letitia James’ office cannot yet begin collecting on the warrant.

“I have the utmost respect for the appellate division’s decision and I will quickly put up $175 million in cash, bonds or securities or whatever is needed within 10 days, and I thank the appellate division for moving quickly,” Trump said. he was caught on camera after leaving a New York courtroom for a hush money lawsuit hearing.

So was Trump before Monday’s sentencing must pay 454 million dollarswas most of the fraud judgment, but the amount he owed increased to more than $111,000 a day due to additional interest.

Trump claimed on social media on Friday that he has about $500 million in cash that he plans to use for his 2024 presidential campaign. The former president has not spent his own money on presidential campaigns since 2016.

Last week he also floated the idea of ​​foreclosing or selling his properties, saying he would be forced to do so at “fire sale prices”.

His attorneys noted in court filings that bond companies typically “request bail of approximately 120% of the judgment amount” — which in this case would be about $557 million.

Trump’s attorneys said in a filing a week ago that they were unable to secure a bond at that time and believed it was a “practical impossibility.” They said that they approached 30 guarantor companies through 4 separate brokers and tried to negotiate with the world’s largest insurance companies.

Other bond companies “will not accept hard assets such as real estate as collateral” and will “only accept cash or cash equivalents (such as marketable securities),” their attorneys said.

Trump’s lawyers had asked the state appeals court to reduce the amount of money he must send or to keep the award without posting any security while challenging Engoro’s order.

Monday’s ruling also suspends the original order barring Trump from serving as a public official of a company, as well as bans on Weisselberg, McConney, Donald Trump Jr. and Eric Trump.

The court did not grant Trump’s requests to ban independent monitoring or install an independent compliance director. The court also did not uphold the provision prohibiting defendants from borrowing from a financial institution registered or chartered in New York State.

In a statement, the AG’s office reversed Monday’s ruling, saying: “Donald Trump remains accountable for his spectacular fraud. The court has already determined that he engaged in fraud for years to falsify his wealth and unjustly enrich himself and his family. , and his organization. The $464 million judgment — plus interest — against Donald Trump and the other defendants remains in effect.”

Trump celebrated the decision in a post on Truth Social, attacking Engoron and reiterating that he believes he did nothing wrong. Speaking to reporters on the sidelines of an unrelated hearing in the New York case, he called Engoro “a disgrace to this country.”

Alina Habba, the former president’s civil fraud lawyer, said in her statement, “We are extremely pleased with the decision of the Appellate Division. This monumental holding in Judge Engoro’s ruling is an affront to all Americans. This is an important first step in the fight against Letitia James and the targeted witch hunt against my client before she steps into office.”

Trump said about this on Friday Fox News he would appeal Engoro’s sentence “all the way to the US Supreme Court, if necessary.” He must first go through the state appeals court process before bringing that challenge to justice.

Trump praised his brand More than 10 billion dollars, but the 2021 financial report put his net worth at $4.5 billion. He said most of his assets were in real estate — not cash or stocks — and that he “had over $400 million in cash” at the time of a deposition in a fraud case last year.

Trump may have some financial relief in his near future.

Shareholders on Friday Digital World Acquisition Corp. voted for the merger of the former president Trump Media and Technology Groupthe private firm that owns its social media platform Truth Social.

Shares of the newly merged Trump Media company could begin to be traded publicly this week, and Trump will own about 80 million shares, estimated to be worth about $3 billion.

Under the terms of the merger, Trump is barred from selling stock in the combined company for at least six months, but the board of directors, which will include his eldest son, Donald Trump Jr., could vote to allow him to sell the shares. before that.

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By 37ci3

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