Former President and current Republican Presidential candidate Donald Trump has been unable to secure a $464 million bond in his civil fraud case in New York.
The lawsuit
The New York Attorney General, Letitia James, accused Trump of “staggering” fraud and misrepresentation in a 220-page lawsuit in September 2022, following a three-year investigation.
The suit alleges that the “acts of fraud and misrepresentation grossly inflated Mr. Trump’s personal net worth as reported in the [annual] Statements [of financial condition] by billions of dollars and conveyed false and misleading impressions to financial counterparties about how the Statements were prepared.”
Furthermore, it accuses Trump and the Trump Organization of using these “false and misleading” statements to “repeatedly and persistently” convince banks to lend money to the company under more favorable terms than would have otherwise been available, to “satisfy continuing loan covenants,” and to persuade insurers to offer coverage for greater limits at reduced premiums.
The trial
The trial began in October 2023, with the judge who had overseen the case already having ruled that Trump had committed fraud, The New York Times writes, meaning no trial was necessary to decide on that aspect of the suit. Instead, the trial focused on determining whether or not Trump had violated any other New York legislation and what his penalty would be.
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).
Trump was also barred from leading any company in New York State for three years.
Upon the decision, Trump stated he would appeal.
The bond
Following the trial, Trump had 30 days, or until March 25, to either pay the money or secure a bond. Securing a bond would ensure that Trump could go through the process of appealing without having authorities collect the money before the appeals are heard.
To secure a bond, Trump would have had to demonstrate to a bonding company that he has the liquidity to pay the penalized amount.
According to CNN, Trump’s lawyers wrote, “The amount of the judgment, with interest, exceeds $464 million, and very few bonding companies will consider a bond of anything approaching that magnitude.”
The New York Times reports that the Trump team has approached around 30 bonding companies.
Should Trump not be able to produce a bond in the coming six days, the New York Attorney General would have the right to collect the $454 million, including by seizing property or freezing assets.