Former President Donald Trump, initially unable to secure a $464 million bond in his civil fraud case in New York, has now successfully posted a $175 million bond after the amount was reduced, and the deadline extended by 10 days.
According to CNN, the bond is underwritten by Knight Specialty Insurance, a Californian insurance company.
The 220-page lawsuit, initiated by New York Attorney General Letitia James in September 2022, following a three-year investigation, accuses Trump of "staggering" fraud and misrepresentation.
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It alleges that Trump and the Trump Organization used "acts of fraud and misrepresentation" to significantly inflate Trump's net worth in annual financial statements by billions, misleading banks, insurers, and other financial entities.
The trial, which began in October 2023, didn't need to establish the occurrence of fraud, as the presiding judge had already determined Trump's fraudulent actions. Instead, the trial's focus was on whether Trump violated other New York laws and the determination of his penalties.
In February 2024, the trial concluded with Judge Arthur F. Engeron penalizing the former president almost $355 million plus interest, amounting to $464 million (including disgorgement for his adult sons; Trump alone was ordered to pay $454 million).
Furthermore, Trump was prohibited from leading any New York State company for three years. Trump announced his intention to appeal the decision.
Originally, Trump had until March 25 to pay the full amount or secure a bond to appeal the decision without immediate collection of the funds. The challenge of securing a bond for the original amount was significant, with Trump's legal team indicating the difficulty in finding a bonding company willing to cover the magnitude of the judgement.
However, with the bond amount reduced to $175 million, Trump managed to post the required bond. This development allows him to proceed with the appeal process while preventing the immediate collection of the $454 million judgement against him.