Letitia James' office throws new wrinkle in Trump's plan
The New York attorney general's office fought back against Trump's attempt to avoid posting a bond in a judgment against him.
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Letitia James' Office Throws New Wrinkle in Trump's Plan
Published Mar 20, 2024 at 4:31 PM EDTUpdated Mar 20, 2024 at 7:16 PM EDT01:01
Full List of Donald Trump Properties That He Could Lose From Fraud Suit
By Jon Jackson
Associate Editor
FOLLOW
New York Attorney General Letitia James' office on Wednesday requested a state appeals court require former President Donald Trump to post a bond that fully covers a $454 million civil fraud judgment against him.
In court documents released on Monday, Trump's legal team argued that securing a bond in the full amount would be "a practical impossibility" for the former president. His attorneys have previously asked if Trump could pay a portion of the amount, $100 million, while he appeals the ruling.
Dennis Fan, senior assistant solicitor general in James' office, said in a Wednesday court filing that Trump's team hasn't adequately proven he can't secure the bond.
Former President Donald Trump, left, holds a campaign rally in Rome, Georgia, on March 9, while New York Attorney General Letitia James, right, is shown in New York City on February 16. James’ office on... MorePHOTO BY CHIP SOMODEVILLAS/TMOTHY A. CLARY/AFP/GETTY IMAGES
"Defendants' new factual allegations and legal arguments fail to support their extraordinary request for a stay based on a bond or deposit of less than one-fourth of the money-judgment amount," Fan wrote.
He continued: "Defendants' argument that obtaining a full bond is purportedly impossible is based on the false premise that they must obtain a single bond from a single surety for the entire judgment amount of $454 million."
James brought a civil fraud lawsuit against Trump in 2022, accusing him—as well as his adult sons, Donald Jr. and Eric, and other officials with The Trump Organization—of a years-long scheme in which he inflated his net worth and the value of his assets to obtain more favorable business loans.
The justice presiding over the case, New York State Supreme Court Justice Arthur Engoron, found Trump liable for fraud in the fall. In February, Trump was ordered to pay a penalty of $355 million, which, with interest, came to a total of over $454 million.
The former president has maintained his innocence in the case. After Engoron announced the penalty, Trump railed against the justice in a Truth Social post, calling Engoron "crooked" and James "corrupt."
Trump has until Monday to post the bond. If he doesn't meet the deadline, James can seize his assets, including Trump Tower.
Interest in the amount of $112,000 is also accumulating on the penalty for each day he doesn't pay. He currently owes approximately $457 million.
Trump's lawyers have said he would have to post collateral that covers 120 percent of the judgment, which would amount to more than $557 million.
The lawyers told the appeals court that "very few bonding companies will consider a bond of anything approaching that magnitude."
Fan's filing argued that Trump could attempt to secure a bond from multiple sureties instead of just one. He also contended that Trump may not be revealing the true worth of his holdings.
"As far as the Court can infer, sureties may have refused to accept defendants' specific holdings as collateral because using Mr. Trump's real estate will generally need 'a property appraisal' and his holdings are not nearly as valuable as defendants claim," Fan wrote.
