Donald Trump is encountering difficulties in securing a bond for the $464 million he’s been ordered to pay in a New York civil fraud case.
He must either pay the full amount in cash or obtain a bond to proceed with his appeal.
Trump expressed the enormity of the task, stating that finding a company willing to underwrite such a bond is “practically impossible.”
His statement highlights the challenge: “The bonding companies have never heard of such a bond, of this size, before.”
Despite extensive efforts, including negotiations with a major insurance company, Trump’s legal team found limited success.
According to court filings, they approached approximately 30 companies without success.
The legal battle extends beyond Trump himself.
His two eldest sons are also facing substantial penalties.
New York Judge Arthur Engoron not only imposed the $464 million penalty on Trump but also prohibited him from conducting business in the state for three years.
However, a judge recently halted this ban but rejected Trump’s proposal for a smaller bond amount.
Trump’s legal team included an affidavit from a private insurance firm’s president, emphasizing the rarity of such a large bond.
The lawyers underscored that such bonds are typically reserved for large public companies, not individuals or privately held businesses.
The gravity of Trump’s legal predicament is underscored by Diana Florence, a former federal prosecutor, who notes that penalties of this magnitude are usually targeted at large corporations.
While Trump’s team has been pursuing delay tactics through appeals, the options may be dwindling.
New York’s attorney general has pledged to seize his assets if he fails to pay the fraud judgment, with interest accumulating at a significant rate until settlement.
Trump’s financial situation adds complexity. Despite an estimated net worth of $2.6 billion, he testified to having $400 million in liquid assets.
However, the $464 million judgment is not his only financial obligation, as he was ordered to pay $83 million in a defamation case earlier.
Moreover, a recent legal setback denied his attempt to block key witness testimonies in one of the four criminal cases he faces.
The intricacies of Trump’s legal battles and financial constraints underscore the uncertainty surrounding his next steps.
Journalists Peter Opondo And Chris Khisa Among Eight Shortlisted For Position Of MD At KBC
