Donald Trump’s legal team informed a New York appeals court that they have been unsuccessful in securing an insurance company to underwrite his bond to cover the substantial judgment against him in the New York attorney general’s civil fraud case.
According to Trump’s lawyers, he has approached 30 underwriters in an attempt to secure the bond, which is required to be posted by the end of the month.
“Very few bonding companies will consider a bond of anything approaching that magnitude,” Trump’s lawyers stated, noting that the judgment, including interest, exceeds $464 million. (Of this amount, Trump himself was ordered to pay $454 million, while the remaining sum accounts for the disgorgement for his adult sons, Don Jr. and Eric.)
Gary Giulietti, an insurance broker who testified on Trump’s behalf during the civil fraud trial, submitted an affidavit asserting that obtaining a bond in the full amount “is a practical impossibility.” Trump’s legal team further revealed that potential underwriters are demanding cash to secure the bond, rather than accepting properties as collateral.
Trump’s legal team has petitioned the appeals court to postpone the requirement for posting the bond until the conclusion of his appeal, contending that the value of Trump’s properties significantly exceeds the judgment. In the event that the appeals court rules against him, Trump has requested the court to postpone the bond posting until his appeal to New York’s highest court is heard.
Last month, New York Judge Arthur Engoron ordered Trump to pay $355 million in disgorgement, also referred to as “ill-gotten gains,” in a civil fraud case initiated by New York Attorney General Letitia James.
Engoron’s decision, outlined in a 93-page ruling, found Trump and his co-defendants, including his adult sons, liable for fraud, conspiracy, and the issuance of false financial statements and business records. The judgment stated that the defendants had fraudulently inflated the value of Trump’s assets to obtain more favorable loan and insurance rates.
With interest included, the amount Trump owes exceeds $450 million.
Although Trump is appealing the ruling, he must post a bond to halt the state from enforcing the judgment, which will be held in an account during the appellate process, a process that could extend for several years.
Earlier this month, Trump posted a $91.6 million bond as part of his appeal in the defamation case brought by E. Jean Carroll.