Donald Trump's New York Fraud Case Woes Just Keep Piling Up
In February, Judge Arthur F. Engoron determined that Donald Trump and his company had falsified financial records for years. In the 92-page decision on the case, Trump was hit with a three-year ban on doing business in New York and a massive fine that totaled around $355 million, plus interest. Trump is appealing the decision, but in the meantime, he still has to come up with a $454 million bond. However, according to a recent court filing by Trump's lawyers, he hasn't been able to come up with the cash to cover the bond and it doesn't look like he will be able to anytime soon considering his lawyers referred to it as a "practical impossibility under the circumstances presented" (via Fox News).
It doesn't sound like this was for lack of trying; more than two dozen companies were reportedly asked and all declined to provide the bond. If a company puts up the appeals bond money and Trump's appeal doesn't result in a reduction of the penalty, the bond company will be on the hook to pay out the penalty if Trump doesn't cover the cost. In order to secure such a sizable bond, Trump would have to have liquid collateral of around $550 million, according to The New York Times, and the court filing seems to confirm he doesn't have that on hand.
Donald Trump's New York properties could be seized
Much of what Donald Trump is worth, money-wise, is tied up in real estate, which is likely why the cash collateral requirement by the bond underwriters is such a challenge. If Trump is unable to secure the $454 million bond, it could lead to parts of his real estate portfolio being seized and sold by the state. New York Attorney General Letitia James, who brought the case against Trump and his company, has confirmed that will be pursued as needed. "If he does not have funds to pay off the judgment, then we will seek judgment enforcement mechanisms in court, and we will ask the judge to seize his assets," James told ABC News.
Trump's inability to pay the bond seems to contradict what his lawyer Alina Habba said about the situation a month before on Fox News; she seemed confident he'd be able to come up with the money. In a deposition in 2023, Trump was asked about his and the company's available cash assets during a deposition in 2023, replying, "We have, I believe, 400 [million] plus and going up very substantially every month," per Politico.
Donald Trump is requesting a delay of paying the multi-million dollar bond
Donald Trump's lawyers are requesting the option to put off paying the bond for the New York fraud case until the appeals process has finished. If the request isn't approved, Trump has until the end of March to find the money. This comes less than two weeks after Trump posted a $91 million bond to cover the penalties in one of his defamation cases with E. Jean Carroll; if she gets the money after the appeals are exhausted, Carroll has big plans for the millions that Trump owes her.
Trump's inability to pay his bond in the fraud case is still the tip of the iceberg when it comes to his legal problems. He is also facing four criminal cases and likely legal fees associated with each of them. The case over hush money payments to Stormy Daniels and Trump's alleged involvement may go to trial in New York as soon as April with his classified documents case in Florida likely to follow not long after.